New York, June 29, 2026 – US stocks ended Monday on a positive note, with the S&P 500 gaining 1.16% and the Nasdaq Composite climbing 2.04%, led by a rebound in big tech shares. The AI trade in June revealed a pronounced split between companies selling bottleneck capacity and those funding the massive build-out.
Investors now have clearer revenue metrics from memory, custom chips, and data-center power gear, moving beyond broad AI software promises. Stocks with the AI label now trade at trailing P/E ratios ranging from 13.5x to 130.0x, highlighting the valuation dispersion.
Key AI Players Report June Data
NVIDIA (NASDAQ:NVDA) reported first-quarter fiscal 2027 revenue of $81.6 billion, with Data Center revenue hitting $75.2 billion, up 92% year-over-year. CEO Jensen Huang noted that AI factory buildouts are accelerating rapidly, following a quarter of record Data Center compute revenue of $60.4 billion and networking revenue of $14.8 billion.
Broadcom (NASDAQ:AVGO) posted AI semiconductor revenue of $10.8 billion for the fiscal second quarter, a 143% increase, and guided for $16.0 billion in AI chip sales in the third quarter. CEO Hock Tan attributed the results to rising demand for custom AI accelerators and networking, with third-quarter AI chip revenue expected to surge over 200% year-on-year.
Micron Technology (NASDAQ:MU) reported $41.46 billion in revenue for its fiscal third quarter, with non-GAAP EPS of $25.11. It guided fourth-quarter revenue to $50.0 billion, plus or minus $1.0 billion. CEO Sanjay Mehrotra stated that data-center revenue topped $25 billion in the quarter, an annualized rate exceeding $100 billion, with DRAM and NAND demand still outstripping supply. Multi-year customer deals are expected to stabilize financial results.
Vertiv (NYSE:VRT) posted Q1 net sales of $2.65 billion, a 30% increase, and raised its full-year 2026 outlook to $13.5–$14.0 billion. CEO Giordano Albertazzi highlighted that buyers are focusing on optimized design, deployment speed, and operational efficiency as AI data centers face constraints beyond chip supply. Americas organic sales jumped 44% on stronger data-center demand.
Funding the Build-Out
On the funding side, Reuters reported that Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) have raised $60 billion in bonds across various currencies over the past year. BNP Paribas estimated hyperscaler capital expenditure for the year at nearly $725 billion. Barclays noted that AI-related debt now accounts for about 15% of the US investment-grade market.
Morgan Stanley’s Teddy Hodgson commented that Alphabet and Amazon have expanded into Europe, Canada, and Asia. Crossmark Global Investments’ Victoria Fernandez warned that recurring bond sales could become problematic, while Jeff Given from Manulife Investment Management expects demand to hold as long as hyperscalers and data centers keep spending.
Market Implications
The June AI roundup underscores a shift in focus from AI demand to cash generation and return on investment. Stocks like Dell Technologies (NYSE:DELL) rose 3.7%, while Super Micro Computer (NASDAQ:SMCI) fell 8.2%, reflecting the divergence. Last week, Reuters noted that Micron and Qualcomm’s forecasts added over $400 billion to chip stocks after hours, despite the PHLX chip index dropping 8% the day before on valuation concerns and the timeline for AI spending payback.
As AI stocks no longer move in tandem, investors are scrutinizing valuation signals: cheap stocks may indicate cyclical risks or customer concentration, while expensive ones must demonstrate that AI sales growth outpaces costs. The market’s attention has shifted to who collects cash first in the AI ecosystem.
