Key facts
- Major tech companies collectively added $2.3 trillion in market value in May.
- Nvidia CEO Jensen Huang described AI chips for PCs as the 'reinvention of the computer'.
- Micron Technology's stock is experiencing its most extreme overbought condition in nearly 30 years.
- Micron stock surpassed $1,000, trading at $1,044.75, with a price target raised to $1,100.
- SoftBank Group surpassed Toyota to become Japan's most valuable company with a market capitalization of 48.8 trillion yen.
- South Korea became the world's sixth-largest equity market, surpassing India.
- Hewlett Packard Enterprise (HPE) accelerated its long-term financial goals by two years.
- Arm Holdings stock surged 14% after Nvidia unveiled its RTX Spark PC superchip.
- TSMC CEO C.C. Wei stated that global chip supply will fall short of AI-driven demand for years.
- BCA Research warns of an 'earnings bubble' driven by unsustainable profit growth from AI demand.
- Foreign investors became net sellers of Japanese stocks last week, ending a two-month buying streak.
- Broadcom's stock tumbled over 12% after disappointing results and AI chip sales forecast.
The artificial intelligence (AI) boom is profoundly impacting global markets, with major tech companies collectively adding $2.3 trillion in market value during May, driven by strong AI chip demand and optimistic earnings outlooks. Nvidia, a central player, saw its CEO Jensen Huang explain the drivers of the AI stock boom and discuss the 'reinvention of the computer' with AI chips for PCs. Nvidia is also competing in data centers, facing rivals like Intel, which unveiled its Crescent Island AI GPU, and AMD. Arm Holdings experienced a significant surge, with its shares jumping 14% after Nvidia announced its RTX Spark PC superchip utilizing Arm-based technology. Mizuho raised its price target for Arm to $425, with CEO Rene Haas expressing confidence in exceeding a $15 billion chip sales target ahead of schedule due to AI infrastructure spending.
Micron Technology has seen its stock reach extreme overbought conditions, trading above $1,000 and prompting a price target hike to $1,100 from Raymond James, citing unprecedented AI-driven demand. Nvidia CEO Jensen Huang confirmed Micron, along with Samsung and SK Hynix, are certified to supply HBM4 memory for the Vera Rubin AI accelerator platform starting in Q3 2026, with SK Hynix expected to provide the largest volume. DRAM prices have surged 128% in 40 days, largely attributed to the performance of just three stocks. TSMC CEO C.C. Wei predicts AI chip supply will lag demand for years, even with manufacturing expansion, and noted that meeting U.S. customer demand with U.S. production will take considerable time. TSMC has acquired ASML's High-NA EUV machines, with deployment pending economic viability.
Beyond individual stocks, the AI trend is creating broader market shifts. SoftBank Group has overtaken Toyota to become Japan's largest company, valued at 48.8 trillion yen, reflecting a focus on AI technology. South Korea has become the world's sixth-largest equity market, surpassing India, driven by its semiconductor companies. Hewlett Packard Enterprise (HPE) reported record quarterly results, accelerating financial goals and seeing its stock surge 23% on strong AI data center demand. Marvell Technology shares jumped over 25% after Nvidia CEO Jensen Huang endorsed the company, which forecasts its custom chips business revenue to exceed $10 billion by fiscal 2029. Megaport is raising $594 million for an AI inference cloud, securing new AI infrastructure contracts. Nebius reported a 684% year-over-year revenue increase, with AI Cloud revenue up 841%, and raised its 2026 capex target to $20–$25 billion. Dell Technologies also reported record AI server sales, leading to a significant stock surge.