* Futures up: Dow 0.32%, S&P 0.20%, Nasdaq 0.14%

* Nvidia ( NVDA ) gains on unveiling new chip to bring AI to

laptops

* Micron shares top $1,000 for the first time

* Friday's jobs report, Broadcom ( AVGO ) results on deck this

week

(Adds comments, updates prices)

By Medha Singh and Twesha Dikshit

June 1 (Reuters) - Wall Street's main indexes were on

track to hit record highs at Monday's open, driven by gains in

Nvidia ( NVDA ) and Microsoft ( MSFT ) following their latest AI initiatives as

investors looked past lingering uncertainty surrounding Middle

East tensions.

Nvidia ( NVDA ) rose 2.3% in premarket trading after

unveiling a new chip that puts AI capabilities directly into

laptops and desktop computers.

The chip is the result of a three-year partnership with

Microsoft ( MSFT ) to "reinvent the PC" for the AI era, Nvidia ( NVDA )

CEO Jensen Huang said. Microsoft ( MSFT ) shares added 3.3%.

The reaction in semiconductor stocks was mixed. Qualcomm ( QCOM )

tumbled 8.9%, while PC chipmakers AMD and Intel

fell 5.5% and 3.7%, respectively. Micron rose 5.5% to

$1,022, topping the $1,000 mark for the first time. Its shares

have soared nearly 90% in May.

"Nvidia ( NVDA ) might expand the market, but most of its gains will

come at the expense of the incumbents," said Brian Jacobsen,

chief economic strategist at Annex Wealth Management.

Memory makers such as Micron stood to benefit because their

chips complement the processors that go into new computers, and

an AI-driven refresh cycle could lift the premium end of the PC

market, he said.

The mood was broadly somber and oil prices climbed after the

latest attacks between the U.S. and Iran raised concerns over

efforts to negotiate an end tothe three-month-old conflict.

Wall Street's main indexes closed May at record highs,

buoyed by hopes of an eventual end to the war and blowout

first-quarter earnings. Optimism around AI has helped boost U.S.

equities, but concerns over the economic impact from the

hostilities remain.

Investors will turn to Friday's jobs report ahead of Kevin

Warsh's debut policy meeting as chairman of the U.S. Federal

Reserve this month, against the backdrop of rising inflation

fears linked to the Iran war that could upend the stock market

rally.

"Passing the baton from one chair to the next isn't always a

smooth process. If the Strait of Hormuz doesn't more fully open

before the next Fed meeting, it's almost certain that the Fed's

policy statement will become more hawkish," Jacobsen said.

Traders have priced in a near 70% chance of a quarter-point

rate hike before the end of the year.

At 08:11 a.m., Dow E-minis rose 164 points, or

0.32%, S&P 500 E-minis gained 15 points, or 0.2%, and

Nasdaq 100 E-minis added 41.25 points, or 0.14%.

Software stocks also staged a rebound from the heavy selling

earlier this year on AI disruption fears. ServiceNow ( NOW ) and

IBM ( IBM ) rose about 9.5% each.

Cadence Design Systems ( CDNS ) added 7.1% after launching

an Nvidia ( NVDA )-powered AI agent for chip design.

Focus will now shift to Broadcom ( AVGO ) earnings on

Wednesday following a strong results forecast last week from

AI-server maker Dell. Broadcom ( AVGO ) is the second-largest

U.S. chipmaker by market value after Nvidia ( NVDA ).

Comments from a slew of central bank officials and a Beige

Book report this week will also be watched before Saturday, when

the Fed enters its pre-meeting blackout period.

In other company news, Taylor Morrison Home Corp ( TMHC )

jumped 22.1% after Berkshire Hathaway ( BRK/A ) agreed to buy the

homebuilder for $6.8 billion in cash.