Tech Stocks, June 2: Dell's AI server surge, Broadcom on deck, and the DRAM bet Wall Street can't stop making

The week's biggest tech trade is already in the rearview. Dell jumped 32.8% on Friday after posting AI server numbers that left analysts scrambling to revise their models upward — and the ripple hit every major server and memory name. Now attention shifts to Wednesday's Broadcom earnings and a string of analyst calls reshaping the memory trade into the summer.

Here's what moved, what's coming, and what it means for the sector.

Dell reported results that landed well above guidance: AI server demand came in materially stronger than the company had projected, and management raised its full-year outlook. The stock's 32.8% single-session gain was one of the largest single-day moves in its post-restructuring history. 1

The move didn't stay contained. Hewlett Packard Enterprise rose 8.1% and Super Micro Computer gained 11.6% in sympathy, as investors priced in a read-through: if Dell's order book for AI infrastructure is accelerating, HPE's and Supermicro's pipelines likely are too. 1

Microsoft climbed 5.4% separately on the day, driven by a software sector recovery and growing conviction that its OpenAI-integrated product suite is gaining enterprise attach rates.

The S&P 500 and Nasdaq both closed at all-time highs on June 1 — the S&P up 0.2% to 7,580 and the Nasdaq up 0.2% to 26,972 — with tech carrying the broader advance for the fifth consecutive week. 2

Broadcom reports after Wednesday's close, and the bar is high. Analysts are projecting roughly $22 billion in revenue, up approximately 47% year-over-year, with AI-related revenue expected to hit around $10.7 billion — a near 140% jump from the same period last year. 3

Broadcom's AI revenue as a share of total revenue has moved in a near-vertical line over four quarters:

The Q2 estimate of ~122% is consensus-implied based on the $10.7B AI / ~$22B total projection. The Q1 figure already exceeded 100% as custom silicon revenue from hyperscaler clients was booked above consolidated revenue. 2

The complication is valuation. Broadcom's stock has already made a large move this year, meaning the margin for error on Wednesday is thin. A clean beat likely sustains the trend; anything that looks like a deceleration signal — even a slight revenue miss or softer AI guidance — could trigger profit-taking at a high base. The stock is the week's clearest event-risk trade in the sector.

CrowdStrike also reports after the same Wednesday close. The cybersecurity name came under pressure three months ago; analysts are watching whether its revenue growth is accelerating back toward the pace it set before the 2024 software outage dragged on renewal rates. 2

Micron crossed a $1 trillion market capitalization in May, posting its best single-month performance since 1985. The thesis driving it: a DRAM shortage that analysts say won't clear until at least 2028, and in some models not until the 2029 demand cycle. 4

The company's most recent quarter illustrated the scale of the move:

Three analyst firms — D.A. Davidson, DBS Bank, and Mizuho — raised price targets to the $1,150–$1,500 range on May 28, all maintaining Buy ratings. UBS sits at the high end with a $1,625 target, citing long-term demand support from hyperscaler AI spending as the primary driver. Of 41 Wall Street analysts currently covering the stock, the consensus rating is Strong Buy. 4

One complication: Samsung has begun shipping HBM4E memory samples to customers globally, attempting to reclaim share it lost to Micron and SK Hynix. The competitive picture in AI memory is getting sharper, even as the overall supply-demand balance remains in shortage territory. 3

Nvidia CEO Jensen Huang is presenting at COMPUTEX in Taipei this week, showcasing next-generation AI and robotics technology. The market cap recently crossed $5 trillion — the first company to do so — and the presentation is closely watched as a demand-signal event for the AI infrastructure cycle. 3

The underlying tension for Nvidia is a slow structural shift: custom silicon's share of the AI accelerator market is projected to expand from roughly 21% in 2025 to nearly 28% in 2026, as Google, Amazon, and Microsoft each accelerate their in-house chip programs. That doesn't threaten Nvidia's near-term earnings — AI capex is still growing fast enough to absorb both — but it does put a ceiling on how fast Nvidia's hyperscaler revenue can compound past 2026. 3

This dynamic partly explains why Broadcom's numbers matter beyond Broadcom itself. If custom silicon demand is ramping — and Broadcom is the primary ASIC partner for Google, Meta, and others — Broadcom's AI revenue line is a proxy for how fast hyperscalers are actually deploying in-house chips.

Meanwhile, Bank of America's June top-pick list leads with Nvidia (NVDA) and Apple (AAPL) in AI infrastructure and large-cap tech, with analyst Vivek Arya maintaining a constructive stance on the semiconductor supply chain through the second half of 2026. Separately, hyperscaler capex is now projected at $720 billion for full-year 2026, with analysts at Raymond James forecasting that figure crosses $1 trillion within the next few years. 5

The week's primary read is whether Broadcom's AI revenue continues accelerating or shows the first signs of digestion. That result will likely set the tone for the semiconductor sector into the summer earnings cycle.