Yuvraj Malik
(Reuters) – Shares of Dell Technologies (NYSE:) hit a record high on Friday amid a rally in companies working on generative artificial intelligence applications, fueled by strong optimism about the new technology.
Artificial intelligence heavyweight Nvidia (NASDAQ:) posted strong quarterly results on Wednesday and forecast current-quarter revenue to exceed Wall Street expectations, confirming that customer spending on genAI will remain strong. The positive momentum has extended to Dell, which recently partnered with Nvidia to release AI-focused personal computers and more powerful servers.
“This is an important and timely new opportunity for Dell,” said Bob O’Donnell of TECHna Analysis Research.
Dell shares rose 6% to $162.82 after earnings slipped slightly in the afternoon and could add $6.6 billion to their market value. The stock, which has more than doubled since the start of the year, closed higher in the previous three sessions.
On Friday, shares of major chip makers rose between a nearly 1% gain for Nvidia and a 4% gain for Qualcomm (NASDAQ:). US listed stocks Hand Shares of (NASDAQ:) rose 2.3%.
Software companies C3.ai (NYSE:) and Palantir Technologies (NYSE:) rose 0.6% and 1.6%, respectively.
“Chip companies are expected to benefit significantly from AI chip orders, led by cloud service providers who have announced significant increases in their capital expenditures in 2024,” said Akshara Bassi, an analyst at Couterpoint Research.