US Stocks Close: Three Major Indexes Hit Record Closing Highs, Optical Communication Stocks Lead Gains, Marvell Technology Jumps Over 32%

TradingKey - On June 2, Eastern Time, the COMPUTEX Taipei conference ignited market investment sentiment for artificial intelligence, with U.S. tech stocks extending their recent rally and all three major indices reaching record closing highs.

At the close, the Dow Jones Industrial Average rose 0.45% to 51,307.79 points; the S&P 500 Index gained 0.13% to 7,609.78 points; and the Nasdaq Composite Index added 0.03% to 27,093.9 points.

Tech stock performance

Marvell Technology (MRVL) closed up 32.52% at $290.79, with its market capitalization surpassing the $250 billion mark.

In terms of news, Jensen Huang stated at the Computex conference that Marvell has the potential to become the next public company with a market capitalization exceeding $1 trillion, adding that it plays a crucial role in large-scale AI data center interconnect infrastructure systems.

Other tech giants saw mixed performance: Broadcom (AVGO) rose 4.70%, Apple (AAPL) gained 2.90%, and Tesla (TSLA) climbed 1.89%; on the downside, Microsoft (MSFT) fell 4.17%, Google (GOOGL) dropped 3.86%, Netflix (NFLX) declined 2.94%, Amazon (AMZN) shed 1.81%, Intel (INTC) lost 1.28%, NVIDIA (NVDA) dipped 0.69%, and Meta Platforms (META) edged down 0.47%.

The Philadelphia Semiconductor Index rose 5.87%, reaching a new record high. Among its 30 constituents, 27 stocks advanced while 3 declined.

Optical communications stocks led the gains, with Marvell Technology (MRVL) surging 32.52%, Coherent (COHR) jumping 17.63%, Lumentum (LITE) up 13.72%, and Corning (GLW) rising 13.41%.

AI application software stocks pulled back, with Snowflake (SNOW) falling 6.79%, ServiceNow (NOW) dropping 6.04%, Shopify (SHOP) down 5.73%, and Palantir (PLTR) declining 5.28%.

Chinese ADRs mostly gained, with internet stocks seeing broad advances. Legend Biotech (LEGN) surged 42.22%, Hesai (HSAI) rose 8.14%, Li Auto (LI) gained 6.12%, Alibaba (BABA) climbed 4.32%, XPeng (XPEV) advanced 4.01%, JD.com (JD) rose 3.64%, and Baidu (BIDU) was up 3.26%.

Corporate News

Microsoft launches its self-developed AI model MAI-Thinking-1

Microsoft unveiled AI models developed by its Microsoft AI Superintelligence team at the company's annual Build conference on Tuesday. These models include the company's first reasoning model, MAI-Thinking-1, as Microsoft aims to further diversify its AI capabilities and reduce its reliance on OpenAI models.

Morningstar values SpaceX at just $780 billion

Morningstar analysts' discounted cash flow model evaluates the enterprise value of SpaceX's core launch and Starlink satellite businesses at approximately $611 billion. In addition, the company's AI business is valued at $170 billion based on 'probability-weighted scenarios'.

The firm stated that the company's valuation is significantly overvalued, and following an IPO, investors will have the opportunity to purchase the stock at a more attractive price.

The site selection for Elon Musk's Terafab chip factory has allegedly been revealed

Recently, shell companies associated with Musk have continued to acquire land in rural areas on the outskirts of Houston. Signs suggest the billionaire is about to finalize the site for a major $55 billion semiconductor factory project jointly invested in by SpaceX and Tesla. Real estate filings show that the entity, named WIT Tech LLC, has purchased at least six parcels of land in Grimes County, covering over 6,000 acres (nearly 10 square miles), though the transaction amounts were not disclosed.

Alphabet plans to raise $80 billion for AI infrastructure

Google parent Alphabet has proposed the largest equity financing plan in history. According to Bloomberg data, the company unexpectedly announced an $80 billion equity sale to boost its AI infrastructure development.

The offering features a multi-tranche structure, covering common stock, equity, and mandatory convertible preferred stock, with pricing for each component to be finalized on Tuesday night local time. Among them, a $40 billion at-the-market (ATM) offering is the core component of this financing and is expected to officially launch in the third quarter of this year.

Industry News

US Sanctions Iran's Largest Cryptocurrency Exchange

The United States announced sanctions on Iran's largest cryptocurrency exchange on Tuesday, accusing the platform of helping the Iranian government and blacklisted state entities circumvent Western sanctions.

Reports indicate that Nobitex processed hundreds of millions of dollars for the Central Bank of Iran and the Islamic Revolutionary Guard Corps. The reports also revealed that Nobitex continued to operate and processed millions of dollars in transactions even after the government forcibly shut down the internet.

US Job Openings Reach Highest Level in Nearly Two Years

Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that job openings rose sharply in April, reaching their highest level in nearly two years. The estimated number of available positions jumped to 7.62 million by the end of April, up from 6.89 million in March, reversing a downward trend from the previous two months.

Trump Requires Companies to Provide Early Government Access to AI Models

On Tuesday local time, Trump signed an executive order requiring artificial intelligence companies to provide the federal government with access to models before their full release, allowing the government to assess their capabilities in advance.

Of particular note, the executive order specifically includes non-compulsory provisions, explicitly ruling out any form of mandatory government licensing, pre-approval, or filing requirements, and emphasizing that these measures are solely for voluntary safety assessments and will not impose mandatory constraints on the normal research, development, and release processes of AI companies.