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 for the new technology.
AI-heavyweight Nvidia posted strong quarterly results and forecast current-quarter revenue above Wall Street expectations on Wednesday, reinforcing that customers’ spending on genAI will continue to hold strong. The positive momentum extended to Dell, which has recently launched AI-oriented personal computers and more powerful servers in collaboration with Nvidia.
“This as 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, ended in the green in the previous three sessions.
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On Friday, shares of major chip firms were up between Nvidia’s nearly 1% rise and Qualcomm’s 4% gain. U.S.-listed shares of Arm Holdings were up 2.3%.
Share of software companies C3.ai and Palantir Technologies were up 0.6% and 1.6% respectively.
“Chip companies are expected to benefit heavily from AI chip-related orders, primarily from Cloud providers, who have indicated significant increase in their capex for 2024,” said Akshara Bassi, an analyst at Couterpoint Research.