HPE, Marvell Ride Nvidia's AI Wave; Victoria's Secret Soars 40%
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
artificial-intelligenceearnings
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Hewlett Packard Enterprise and Nvidia CEO Backs $1 Trillion Target">Marvell Technology advanced in early trading on June 2, propelled by bullish commentary on artificial intelligence demand from industry leaders, while Victoria's Secret shares soared more than 40% following a significant first-quarter earnings beat. The moves highlight a bifurcated market where consumer discretionary stocks rally on operational improvements and technology shares capitalize on the expansive AI infrastructure build-out. Nvidia, a key bellwether for the sector, traded at $225.55, up 6.82% on the day, as of 16:01 UTC today. The session's activity underscores the continued investor appetite for both turn-around stories and growth tied to the semiconductor ecosystem.
The technology sector's rally is firmly anchored in the computing demands of large-scale AI model training and inference. This trend has accelerated over the past 18 months, with the PHLX Semiconductor Index rising over 60% since the start of 2025. The current macro backdrop features persistent but moderating inflation, allowing central banks to hold policy steady, which has supported risk assets. The specific catalyst for HPE and Marvell was the Computex trade show in Taipei, where Nvidia CEO Jensen Huang presented a roadmap for the next generation of AI hardware. His prediction of a $1 trillion valuation for Marvell, echoed by the company's own CEO Matt Murphy, signals intense confidence in the longevity of the current investment cycle beyond just the leading chip designers.
For Victoria's Secret, the catalyst was a demonstrable proof of concept in its ongoing brand turnaround. The company's separation from Bath & Body Works in 2023 allowed for a sharper focus on its core lingerie and apparel business. The first-quarter results, which dramatically exceeded expectations, validate management's strategy of overhauling marketing, refining product assortments, and improving the in-store experience. This marks a significant departure from several quarters of struggling with shifting consumer preferences and increased competition.
Victoria's Secret, now trading under the ticker VSXY, reported adjusted operating income that nearly doubled analyst consensus estimates. The company's net sales for the quarter also topped forecasts, leading management to raise its full-year guidance across key financial metrics. The stock's surge of over 40% in the session represents one of its largest single-day gains since becoming an independent public company. This performance starkly contrasts with the broader SPDR S&P Retail ETF (XRT), which was largely flat for the day.
Hewlett Packard Enterprise's positive movement stemmed from an annual sales outlook that surpassed Wall Street projections. The company specifically cited "massive growth" in AI server and networking product demand. While detailed financials from the announcement were not provided, the upward revision indicates expectations for significant revenue acceleration in the second half of its fiscal year. Marvell Technology's rise was more sentiment-driven, directly tied to the valuation projection made by Nvidia's CEO. Nvidia itself traded in a range between $224.72 and $232.28 during the session, reflecting high volatility typical of major tech announcements.
| Company | Ticker | Key Metric | Performance |
|---|---|---|---|
| Victoria's Secret | VSXY | Adjusted Operating Income | ~100% Above Estimate |
| Nvidia | NVDA | Intraday Price Range | $224.72 - $232.28 |
| Hewlett Packard Enterprise | HPE | Annual Sales Outlook | Above Consensus |
The simultaneous strength in a specialty retailer and AI-infrastructure tech firms points to a healthy broadening of market leadership. For the technology sector, the optimism around HPE and Marvell suggests that AI-related capital expenditure is filtering down to secondary players beyond Nvidia. This benefits companies involved in networking equipment, like Arista Networks, and server components, such as those produced by Advanced Micro Devices. The risk to this thesis is a potential slowdown in enterprise spending or a delay in the monetization of AI projects, which could dampen the lofty growth expectations currently priced into these stocks.
Victoria's Secret's performance indicates that investors are rewarding successful operational overhauls in the challenged retail space. A strong beat and raised guidance could lead to positive estimate revisions for other apparel retailers like American Eagle Outfitters and Gap Inc., as it shows consumer demand remains selective but potent for brands that resonate. Positioning data suggests short covering likely amplified VSXY's move, as the stock had been a popular target for bears skeptical of its turnaround prospects. The flow appears to be rotating into companies demonstrating tangible quarterly execution, whether in high-growth tech or mature consumer sectors.
The immediate catalyst for the technology names will be Nvidia's next earnings report, scheduled for late August 2026, which will provide a crucial health check on AI demand. For HPE and Marvell, investors should monitor their quarterly earnings releases in the coming weeks for confirmation that the upbeat guidance is translating into firm order bookings. Key technical levels to watch for NVDA include the session high of $232.28 as near-term resistance and the 50-day moving average, currently around $215, as support.
For Victoria's Secret, the next major test is its second-quarter earnings report and, more importantly, its back-to-school and early holiday season sales figures. The company must demonstrate that its first-quarter success was not a one-time event but the start of a sustained positive trend. Market participants will scrutinize same-store sales growth and margin metrics in subsequent quarters to gauge the durability of the rebound. A break below the stock's pre-announcement price level would signal a failure of the new bullish narrative.
The surge in demand for AI servers is a multi-quarter tailwind for a wide range of companies beyond HPE. It directly benefits semiconductor manufacturers providing high-bandwidth memory, such as SK Hynix, and firms specializing in advanced packaging and cooling solutions for data centers. This thematic investment is a core part of the infrastructure build-out required to support widespread AI adoption, creating revenue streams for ancillary hardware and software providers. The scale of this demand is a primary reason for the outperformance of the semiconductor sector relative to the broader market.
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