Dell Technologies’ stock price rises 32% thanks to the AI craze

Intraday up to 131.06… Breaks 52-week high
NVIDIA market cap exceeds $2 trillion

Dell Technologies’ stock price rises 32% thanks to the AI craze Dell Technologies (hereinafter referred to as Dell), an American PC and server manufacturer, took advantage of the artificial intelligence (AI) craze and saw its stock price rise by more than 30% in one day.

As a result, the stock prices of AI semiconductor companies rose together, and Nvidia’s market capitalization exceeded $2 trillion (approximately 2,672 trillion won) based on the closing price for the first time.

On the New York Stock Exchange on the 1st (local time), Dell’s stock price closed at $124.59, up 31.62% from the previous day. On this day, Dell attracted the market’s attention by rising to an intraday high of $131.06 and breaking the 52-week high.

According to CNBC, an American economic media outlet, Dell took the company private in 2013 and re-listed it on the stock market in 2018, and its market capitalization at the time of resuming trading was about $16 billion (about 21.376 trillion won). As of the closing price on this day, the market capitalization had risen to $88 billion (approximately 117.568 trillion won). The surge in AI-related sales in the company’s quarterly results announced the previous day was largely responsible for the stock price surge on this day.

The company announced that servers optimized for AI recorded sales of $4.9 billion (KRW 6.5464 trillion). “We continue to see strong AI-optimized server momentum, with orders growing nearly 40% year over year,” said Chief Operating Officer Jeff Clark.

On this day, Morgan Stanley analysts selected Dell as their ‘top pick’ and raised their target stock price from $100 to $128. They evaluated, “Strengths such as AI server orders and order backlog show that Dell’s AI story is just beginning and is gaining momentum.”

Wells Fargo also raised Dell’s target stock price to $140 and suggested ‘overweighting.’

With Dell’s successful earnings announcement, stock prices of AI semiconductor and server companies also rose significantly. NVIDIA’s stock price closed at $822.79, up 4.0% from the previous day, and based on the closing price, the company’s market capitalization recorded $2.056.975 trillion (about 2,748 trillion won).

NVIDIA’s market cap exceeded $2 trillion during the trading session on the 23rd, but then fell based on the closing price, and within a week, it exceeded $2 trillion for the first time based on the closing price. It ranks third in market cap after Microsoft and Apple.

The stock price of Supermicro Computer, another company that makes servers with Nvidia chips, also rose 4.5% on this day.

Other semiconductor companies riding the AI rally, Broadcom and Marvell Technology, also rose 7.6% and 8.3%, respectively. Nvidia’s competitor AMD’s stock price also rose 5.3%.

Emma