Dell Hits Record High Amidst Rally in AI Stocks

Sat May 25 2024
icon-facebook icon-twitter icon-whatsapp

CALIFORNIA: Shares of Dell Technologies hit a record high amid a rally in companies working on generative artificial intelligence (AI) applications, buoyed by strong optimism for the new technology. The rally was fueled by AI heavyweight Nvidia, which reported robust quarterly results and projected current-quarter revenue exceeding Wall Street expectations on Wednesday. This reinforced the belief that customer spending on generative AI remains strong.

The positive momentum extended to Dell, which has recently introduced AI-oriented personal computers and more powerful servers in collaboration with Nvidia. “This is an important and timely new opportunity for Dell,” commented Bob O’Donnell of TECHnalysis Research.

Dell shares increased by 6% to $162.82 after trimming some gains in the afternoon, positioning the company to add $6.6 billion to its market value. The stock, which has more than doubled year-to-date, closed in the green for the third consecutive session.

On Friday, shares of major chip firms also saw gains, with Nvidia rising nearly 1% and Qualcomm up 4%. U.S. listed shares of Arm Holdings climbed 2.3%.

Software companies and Palantir Technologies also experienced upticks, with shares rising 0.6% and 1.6%, respectively.

Furthermore, an analyst at Counterpoint Research, Akshara Bassi stated that chip companies are expected to benefit heavily from AI chip-related orders, primarily from cloud providers who have indicated a major increase in their capital expenditures for 2024.

icon-facebook icon-twitter icon-whatsapp