Dell Technologies (NYSE:DELL) saw its shares reach a record high on Friday, propelled by a surge in companies focused on generative artificial intelligence applications, fueled by strong optimism for this emerging technology.
The rally in AI stocks was fueled in part by Nvidia’s robust quarterly results and optimistic forecast for current-quarter revenue, exceeding Wall Street expectations. Nvidia’s success underscored the ongoing strong spending by customers on generative AI. This positive sentiment spilled over to Dell, which has recently introduced AI-oriented personal computers and enhanced servers in collaboration with Nvidia.
Bob O’Donnell of TECHnalysis Research highlighted this as an important and timely opportunity for Dell.
Dell shares surged by 6% to $162.82, although they moderated slightly in the afternoon, poised to add $6.6 billion to its market value. The stock, which has more than doubled year-to-date, had ended positively in the previous three sessions.
On Friday, shares of major chip firms experienced gains, with Nvidia leading with nearly a 1% rise, and Qualcomm following with a 4% gain. U.S.-listed shares of Arm Holdings also saw a 2.3% increase.
Additionally, shares of software companies C3.ai and Palantir Technologies witnessed gains of 0.6% and 1.6%, respectively.
Analyst Akshara Bassi from Counterpoint Research noted that chip companies are expected to reap significant benefits from AI chip-related orders, particularly from Cloud providers, who have indicated substantial increases in their capital expenditure for 2024.
Featured Image: Megapixl
