Dell Technologies Shares Hit Record High Amid AI Optimism

Shares of Dell Technologies hit a record high on Friday, driven by a rally in companies focused on generative artificial intelligence (AI) applications. This surge is buoyed by strong optimism surrounding the new technology.

Nvidia’s Influence on Market Sentiment:

On Wednesday, AI-heavyweight Nvidia posted strong quarterly results and forecast current-quarter revenue above Wall Street expectations. 

This reinforced the belief that customer spending on generative AI will remain robust. The positive momentum extended to Dell, which has recently launched AI-oriented personal computers and more powerful servers in collaboration with Nvidia.

“This is an important and timely new opportunity for Dell,” said Bob O’Donnell of TECHnalysis Research.

Dell Stock Performance:

Dell shares rose 6% to $162.82 after paring some gains in the afternoon. They were on track to add $6.6 billion to their market value. The stock, which has more than doubled year to date, had ended in the green for the previous three sessions.

Broader Market Impact:

On Friday, shares of major chip firms saw increases, with Nvidia rising nearly 1% and Qualcomm gaining 4%. U.S.-listed shares of Arm Holdings were up 2.3%.

Shares of software companies C3.ai and Palantir Technologies also experienced gains, rising 0.6% and 1.6%, respectively.

“Chip companies are expected to benefit heavily from AI chip-related orders, primarily from Cloud providers, who have indicated a significant increase in their capital expenditure for 2024,” said Akshara Bassi, an analyst at Counterpoint Research.