Shares of Dell Technologies Inc. (NYSE:DELL) reached an all-time high on Friday, driven by the broader rally in companies developing generative artificial intelligence applications. This surge reflects strong market optimism for the burgeoning technology.
Nvidia Corporation (NASDAQ:NVDA), a leader in the AI sector, reported impressive quarterly earnings on Wednesday and provided a revenue forecast that surpassed Wall Street expectations. This reaffirmed that customer investments in generative AI remain robust. The positive outlook for AI spending also benefited Dell, which recently introduced AI-focused personal computers and enhanced servers through a partnership with Nvidia. Bob O’Donnell of TECHnalysis Research noted, “This is a significant and timely new opportunity for Dell.”
Dell’s stock rose 6% to $162.82 after trimming some gains in the afternoon, poised to add $6.6 billion to its market value. The stock has more than doubled in value this year and has closed higher for three consecutive sessions.
On Friday, shares of key semiconductor companies saw gains, with Nvidia increasing by nearly 1% and Qualcomm Inc. (NASDAQ:QCOM) rising by 4%. The U.S.-listed shares of Arm Holdings plc (NASDAQ:ARM) were up 2.3%.
Software firms C3.ai Inc. and Palantir Technologies Inc. (NYSE:PLTR) saw their shares increase by 0.6% and 1.6%, respectively.
Akshara Bassi, an analyst at Counterpoint Research, commented, “Chip companies are anticipated to significantly benefit from AI chip-related orders, primarily from cloud service providers who have indicated a substantial increase in their capital expenditures for 2024.”
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