Dell Technologies (NYSE:DELL) shares hit a record high on Friday amid a broader rally in companies involved in productive artificial intelligence (AI) technologies. The market's excitement towards this innovative sector has been supported by recent positive developments.
Nvidia (NASDAQ:NVDA (NASDAQ:NVDA)), a leading force in artificial intelligence, on Wednesday reported strong quarterly earnings and a revenue forecast for the current quarter that beat analysts' expectations. The news highlighted a continued demand for genAI, benefiting Dell, which has partnered with Nvidia to launch AI-focused personal computers and more powerful servers.
Industry expert Bob O'Donnell from TECHnalysis Research pointed out the importance of this development for Dell and stated that it is a significant new opportunity for the company.
Dell's share price experienced some fluctuations in the afternoon, but rose 6% to $162.82. The company's market value is expected to increase by $6.6 billion. Dell's stock performance has been notable, more than doubling since the beginning of the year and maintaining positive momentum over the past three sessions.
Other major chipmakers also experienced gains on Friday. Nvidia was up about 1%, while Qualcomm (NASDAQ:QCOM) was up 4%. Arm Holdings (NASDAQ:ARM) shares also rose, gaining 2.3%.
Software companies C3.ai (NYSE:AI) and Palantir Technologies (NYSE:PLTR) saw their shares rise 0.6% and 1.6%, respectively.
Chip companies are poised to benefit significantly from a surge in AI chip-related orders, particularly from cloud service providers that are ramping up capital spending for 2024, according to Counterpoint Research analyst Akshara Bassi.
-Investing.com
