Shares of Dell Technologies hit a record high on Friday amid a rally in companies working on generative artificial intelligence applications, buoyed by strong optimism for the new technology.
AI-heavyweight Nvidia last Wednesday posted strong quarterly results and forecast current-quarter revenue above Wall Street expectations, reinforcing that customers’ spending on gen AI will continue to hold strong. The positive momentum extended to Dell, which has recently launched AI-orientated PCs and more powerful servers in collaboration with Nvidia.
“This as an important and timely new opportunity for Dell,” said Bob O’Donnell of Technalysis Research.
Dell shares rose 6% to US$162.82 after paring some gains in the afternoon. The stock, which has more than doubled year to date, ended in the green in the previous three sessions.
On Friday, shares of major chip firms were up between Nvidia’s nearly 1% rise and Qualcomm’s 4% gain. US-listed shares of ARM Holdings were up 2.3%. Shares of software companies C3.ai and Palantir Technologies were up 0.6% and 1.6%, respectively.
“Chip companies are expected to benefit heavily from AI chip-related orders, primarily from cloud providers, which have indicated significant increase in their capex for 2024,” said Akshara Bassi, an analyst at Couterpoint Research. — Yuvraj Malik and Priyanka G, (c) 2024 Reuters