Dell Stock Surges, Boosting Nvidia and AMD Shares

Dell solidifies AI credibility, analyst says. AI-optimized servers shipments up, likely to win more believers. Stock price target raised.

Dell Technologies Inc. is making a comeback in the tech world, riding the wave of the artificial intelligence trend that has boosted the stock prices of chip giants like Nvidia Corp. and Advanced Micro Devices Inc. over the past year.

The company's recent financial results show a strong performance in the AI sector, with $800 million in shipments of AI-optimized servers for the latest quarter and a 40% increase in orders for them. Analysts believe that Dell has solidified its credibility in the AI space and is gaining more believers with its impressive numbers.

Raymond James analyst Simon Leopold praised Dell's AI momentum and healthy backlog growth, stating that the company has exceeded expectations and likely surprised investors. He has raised his price target on Dell's stock, predicting further success in the AI market.

Melius Research analyst Ben Reitzes compared Dell's server business to "razors," emphasizing the importance of AI servers in driving sales of higher-margin products like storage, software, and services. He also highlighted the positive impact of Dell's report on chip manufacturers like AMD and Nvidia.

Mizuho analyst Jordan Klein described Dell as the "Swiss Army knife" of generative AI, noting the company's expertise in building AI performance servers. He believes that Dell's $2.9 billion AI backlog will continue to grow and lead to increased revenue opportunities in the future.

Overall, analysts are optimistic about Dell's future in the AI market, with expectations of continued success and positive implications for chip companies like AMD and Intel. Dell's strong performance in the AI sector is seen as a significant driver of growth and profitability for the company.