By George Glover
The rebound in software stocks looked set to fizzle out as Wall Street pivoted back toward the chip and server makers that have helped power the market to all-time highs in recent months.
Oracle fell 5%, ServiceNow dropped 5.2%, Gartner declined 4.9%, and Workday slid 4.6% in the premarket session Tuesday. The four stocks have staged a comeback over the past month after getting hammered earlier in the year by fears over artificial-intelligence disruptions.
As one rally faltered, another reignited.
AI chip maker Broadcom jumped 6.8% ahead of the opening bell thanks to a double boost from Alphabet and Nvidia. Marvell Technology surged 25% after Nvidia CEO Jensen Huang said the chips and networking company could top a $1 trillion valuation. Nvidia's own shares were 1.9% higher. STMicroelectronics gained 11% after the company raised its data-center revenue target, while Microchip Technology added 8.7% after it said it would hike the price of some of its semiconductors to offset higher costs.
Server makers also racking up gains following Hewlett Packard Enterprise's stellar fiscal second-quarter earnings, which signaled that the AI boom is still driving up demand. HPE soared 23%. Dell Technologies ticked up 0.9%, putting it on track to extend its eight-session winning streak, while Super Micro Computer Inc. rose 5%.
These stocks also making moves:
Alphabet fell 2.4% after the Google parent said it would issue $80 billion of equity to help fund its AI infrastructure build-out.
Aevex tumbled 12% after the drone maker announced a public offering of 5.7 million shares, along with another 2.3 million shares from certain selling stockholders.
Credo Technology Group fell 3.3% after the electrical cable maker forecast that its revenue growth would slow over the current quarter.
Write to George Glover at george.glover@dowjones.com
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June 02, 2026 07:29 ET (11:29 GMT)
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