TLDR
- Hewlett Packard Enterprise jumped 27% after a strong Q2 earnings beat and raised full-year guidance
- Marvell Technology rose 23% after unveiling a new AI-optimized chip, the Teralynx T100
- Alphabet fell 2% after announcing an $80B fundraise to expand AI infrastructure
- S&P 500 futures edged down 0.21%, with Bitcoin dropping 2.90% to $69,413
- Microchip Technology rose 4% after projecting 65% growth in its Data Center Solutions unit
Hewlett Packard Enterprise had a standout Tuesday, with shares jumping 27% in premarket trading after the company reported a strong second quarter. Adjusted earnings per share came in at $0.79, beating estimates by $0.26. Revenue hit $10.68 billion, up 40% year over year.
Hewlett Packard Enterprise Company, HPE
The biggest drivers were Networking, which grew 148%, and Cloud and AI, which grew 23%. The company also raised its full-year 2026 adjusted EPS outlook to $3.35–$3.45, well above the previous guidance of $2.30–$2.50 and the analyst consensus of $2.43. Free cash flow guidance was lifted to $3.5 billion from $2 billion.
HPE also introduced a FY2027 growth framework and announced that a partner from Elliott Investment Management will join its board.
Marvell Unveils New AI Chip
Marvell Technology rose 23% after announcing the Teralynx T100, which the company described as the industry’s first 102.4 Tbps AI-optimized switch silicon. The chip is designed for next-generation AI infrastructure in hyperscale data centers.
Marvell said the chip uses up to 25% less power than competing products while improving speed and scalability. Customer sampling is set to begin this quarter. Marvell shares are now up more than 150% year to date.
The company expects FY2027 revenue to grow roughly 40% to nearly $11.5 billion, following 42% growth in FY2026.
Microchip Technology rose 4% after saying its Data Center Solutions unit is expected to grow 65% to around $500 million in calendar year 2026. The company also announced selective price increases to offset rising supplier costs, though it said these will not affect current quarter guidance.
Alphabet Falls on $80B Fundraise
Alphabet dropped 2% after announcing plans to raise $80 billion to fund AI infrastructure expansion. The package includes $30 billion in public offerings, $40 billion through an at-the-market program, and a $10 billion private placement from Berkshire Hathaway.
Berkshire will buy $5 billion in Class A shares and $5 billion in Class C shares. Alphabet said demand for its AI products is outpacing available capacity. The company had already guided for $180–$190 billion in capital expenditures in 2026, with further increases expected in 2027.
On the losing side, Nubank fell 4% after announcing a new CFO, Rob Livingston, effective July 13. Credo Technology dropped 3% despite reporting earnings that beat estimates, as investors had expected even stronger results.
S&P 500 futures were down 0.21% and the 10-year Treasury yield sat at 4.433%. Bitcoin fell 2.90% to $69,413.
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