Shares of Dell Technologies (DELL.N) soared to a record high on Friday amid a surge in companies specializing in generative artificial intelligence applications, fueled by strong optimism for the burgeoning technology.
AI powerhouse Nvidia (NVDA.O) reported robust quarterly results and projected current-quarter revenue surpassing Wall Street expectations on Wednesday, underscoring the sustained strong demand for AI investments. This positive momentum extended to Dell, which recently introduced AI-focused personal computers and more robust servers in partnership with Nvidia.
“This presents an important and well-timed new opportunity for Dell,” remarked Bob O’Donnell of TECHnalysis Research.
Dell shares surged by 6% to $162.82, though they tapered some gains in the afternoon, poised to augment its market value by $6.6 billion. Having more than doubled year-to-date, the stock concluded positively in the preceding three sessions.
On Friday, major chip companies saw increases, ranging from Nvidia’s nearly 1% rise to Qualcomm’s (QCOM.O) 4% gain. U.S.-listed shares of Arm Holdings also climbed by 2.3%.
Shares of software firms C3.ai (AI.N) and Palantir Technologies (PLTR.N) saw upticks of 0.6% and 1.6%, respectively.
“Chip companies are anticipated to benefit significantly from AI chip-related orders, primarily from Cloud providers, who have signaled a substantial increase in their capital expenditures for 2024,” noted Akshara Bassi, an analyst at Counterpoint Research.
