Written by Yuvraj Malik
Dell Technologies, a leader in the tech industry, had a record performance on Friday. Their shares jumped 25% which suggested that Dell is doing well in the Artificial Intelligence (AI) industry. This news is a great sign for the company and is also making investors happy.
Dell’s stock price increased to $118.8. This meant that the worth of the company increased by $17.7 billion. This was the best performing day for the company’s stock. This rise in stock prices shows that more businesses are starting to use AI. This has led to gains in the technology sector. It also adds to excitement on Wall Street following another company’s impressive rally.
“We have made a good move in AI,” said Jeff Clarke, COO of Dell. He said this on Thursday during an interview. He added that more customers now want computers and servers that have AI features. Dell’s AI servers, including their top model, the PowerEdge XE9680, are becoming more popular. Sales of these servers increased by 40% in the last quarter of the previous year.
Many brokerages raised their price targets on Dell. At the moment, more than three-fourths of them suggest buying Dell’s shares. The average price target is $113.
“Dell’s AI business is doing really well,” said the analysts at Bernstein. They also mentioned that the company’s prediction for the PC market is similar to that of HP’s. They think sales will improve, but this won’t happen until the second half of the year.
In fact, HP, which also sells computers, has seen its sales drop for seven consecutive quarters. This is a difficult period for the company.
In the last two years, Dell had been struggling quite a bit. Their sales have dropped sharply all over the world. However, their losses in the fourth quarter of the last year were smaller than expected. This was the first time their annual revenue dropped since they returned to the stock exchange in 2018.
Dell expects to make between $91 billion and $95 billion in this fiscal year, which will end in January 2025. This is higher than what analysts had predicted. They thought Dell would make about $92.07 billion.
In summary, Dell is doing well in the realm of artificial intelligence and is expecting prosperous times ahead.
Vocabulary List:
- Performance (noun): The action or process of performing a task or function.
- Shares (noun): Units of ownership in a company.
- Artificial Intelligence (noun): The simulation of human intelligence processes by machines.
- Investors (noun): Individuals or organizations that provide money with the expectation of a financial return.
- Server (noun): A computer or system that provides resourcesdataservicesor programs to other computers.
- Brokers (noun): Individuals or firms that act as intermediaries between buyers and sellers in financial markets.
