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Dell Hits Record High During AI Stock Rally

By Yuvraj Malik

(Reuters) – 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 about the new technology.

AI heavyweight Nvidia posted strong quarterly results and forecast revenue above Wall Street expectations on Wednesday, confirming that customer spending on genAI will remain strong. The positive momentum spread to Dell, which recently launched AI-oriented personal computers and more powerful servers in partnership with Nvidia.

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

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

On Friday, shares of major chip companies rose between Nvidia’s nearly 1% rise and Qualcomm’s 4% rise. US-listed shares of Arm Holdings rose 2.3%.

Shares of software companies C3.ai and Palantir Technologies rose 0.6% and 1.6%, respectively.

“Chip companies are expected to benefit heavily from AI chip-related orders, especially from cloud providers, which have indicated a significant increase in their capital investments for 2024,” said Akshara Bassi, analyst at Couterpoint Research.

(Reporting by Yuvraj Malik and Priyanka G in Bengaluru; Editing by Maju Samuel)