By Callum Keown
The insatiable chip stocks rally was marching on Wednesday but other areas of the tech sector were coming under pressure.
Red-hot semiconductor names may not be enough to extend the S&P 500's 9-day winning run to a tenth day, though -- and it's longest streak since 1995. Futures dipped ahead of the open.
Marvell stock was climbing 13% ahead of the open after its 33% jump in the previous session. Nvidia CEO Jensen Huang said the chips-and-networking company could become the next trillion-dollar stock. It's got some way to go, closing with a market capitalization of $254 billion on Tuesday, but investors are enthused by Huang's endorsement nonetheless.
Intel was roaring back, up 6% and finally set to snap a five-day losing streak. The shares fell sharply on Monday after Nvidia unveiled an AI chip designed for personal computers -- Intel's core market.
Advanced Micro Devices, which was also hit following Nvidia's announcement, was up 3% in premarket trading Wednesday.
Away from chips, though, other areas of the tech sector were under pressure. Palo Alto Networks' strong third-quarter earnings failed to ease fears around the impact of artificial intelligence on cybersecurity companies, falling 2%. Zscaler fell 2.5%, CrowdStrike dropped 1.1% and Okta dipped 2.1%.
The broader software sector was suffering too, with Oracle, ServiceNow down 3%. GitLab was down 4% after the software-developments tools maker said it was cutting 14% of its workforce as part of a pivot toward AI.
The dying embers of earnings season are also keeping investors busy. GameStop jumped 9% after the videogame retailer reported its highest quarterly net income on record.
Macy's posted its strongest first-quarter sales growth in four years and hiked its annual guidance early Wednesday. But the stock is up 1.9%.
Write to Callum Keown at callum.keown@dowjones.com
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(END) Dow Jones Newswires
June 03, 2026 07:27 ET (11:27 GMT)
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