* Indexes up: Dow 0.31%, S&P 500 0.23%, Nasdaq 0.27%

* Alphabet dips on plans to raise $80 billion for AI

buildout

* Marvell ( MRVL ) jumps on Nvidia's ( NVDA ) CEO calling it next trillion

dollar co

* Software shares down following a strong rebound rally

* S&P 500, Dow hit new record highs

(Updates to late afternoon prices)

By Medha Singh and Twesha Dikshit

June 2 (Reuters) - The Dow and the S&P 500 scaled fresh

record highs on Tuesday as strong results from Hewlett Packard

Enterprise ( HPE ) and a funding commitment from Alphabet reinforced

confidence in the AI buildout.

HPE surged about 26%, on track for a record one-day

percentage gain, after the AI server maker pulled forward its

long-term financial targets by two years. Peer Super Micro

Computer ( SMCI ) climbed 6%, while chipmakers gained

5%.

Alphabet said it was looking to raise $80 billion in

equity offerings, including an investment from Berkshire

Hathaway, to fund a costly expansion of its AI infrastructure.

While Alphabet's stock itself slipped nearly 2.5%, dragging down

the communications services index almost 1.5%, the

news fanned optimism around AI infrastructure spend.

"It confirms the insatiable demand that we're seeing really

across the board for AI. Every day it seems like a different

company comes out with incredible signs that this wave of AI is

alive and well," said Ryan Detrick, chief market strategist at

Carson Group.

The S&P 500 and the Nasdaq logged their eighth straight

session of gains on Monday and closed at record levels after

Nvidia ( NVDA ) unveiled a new processor to bring AI to personal

computers.

Marvell Technology's ( MRVL ) shares surged more than 26% to

over $240 billion in market value after Nvidia ( NVDA ) Chief

Executive Officer Jensen Huang called the chipmaker the next

"trillion dollar company" at the Computex conference in Taipei.

Nvidia ( NVDA ) invested $2 billion in Marvell ( MRVL ) in March.

At 11:26 a.m. ET, the Dow Jones Industrial Average

rose 155.84 points, or 0.31%, to 51,234.72, the S&P 500

gained 17.47 points, or 0.23%, to 7,617.43 and the Nasdaq

Composite gained 73.42 points, or 0.27%, to 27,160.23.

Seven out of 11 major S&P 500 indexes were in the green,

with utilities advancing the most.

The software index dropped 3.7% as a recovery

rally stalled following a 14% surge in the last three sessions.

ServiceNow ( NOW ), Salesforce ( CRM ) and Intuit were

down between 6% and 10%. Microsoft ( MSFT ) dropped 3.7%.

Microchip Technology ( MCHP ) advanced 6% after an upbeat

data center revenue forecast.

Upbeat first-quarter results and AI enthusiasm have driven

the rally on Wall Street, with hopes for an end to the U.S.-Iran

conflict and a reopening of the Strait of Hormuz adding support.

But recent flare-ups in tensions have raised concerns that

a prolonged conflict could stoke inflation, push the Federal

Reserve toward tighter policy and threaten Wall Street's record

run.

U.S. Secretary of State Marco Rubio told lawmakers that Iran had

agreed to negotiate aspects of its nuclear program that it

previously refused to discuss.

"There's a lot of uncertainty there, especially when it

comes to the increase we got in oil prices yesterday because of

that. We're seeing that some of the momentum trade is losing a

little bit of steam," said Megan Horneman, chief investment

officer at Verdence.

Cleveland Federal Reserve President Beth Hammack, a voting

member of the central bank's policy-setting committee, said the

Fed may need to raise interest rates soon should already high

inflation pressures continue to mount.

Money market pricing shows traders have all but priced out

rate cuts for 2026 and see growing odds of an eventual hike.

Advancing issues outnumbered decliners by a 1.55-to-1 ratio on

the NYSE, decliners outnumbered advancers by a 1.01-to-1 ratio

on the Nasdaq.

The S&P 500 posted 22 new 52-week highs and 15 new lows while

the Nasdaq Composite recorded 96 new highs and 71 new lows.

(Reporting by Medha Singh and Twesha Dikshit in Bengaluru;

Editing by Shinjini Ganguli and Devika Syamnath)