(new: closing price, record daily profit)
NEW YORK (dpa-AFX) – The euphoria surrounding the topic of artificial intelligence (AI) has long since reached Dell (Dell Technologies). The shares have been going from record to record since March. The fact that the US computer company has had a strong first quarter thanks to AI and is now expecting an even better year as a whole than experts already expected catapulted the shares up by a third on Friday. Almost 33 percent represented the highest daily profit in Dell history. The increase in shares since the beginning of the year is over 230 percent, while the S&P 500 is only just under eleven percent.
At the start of the financial year, Dell recorded a 757 percent jump in sales of AI servers. The computer company offers the basis for the booming topic of AI with high-performance servers, network systems and storage solutions. Overall, its strong growth significantly exceeded market expectations. The same applied to the visibly increased annual targets. “This is what an AI supercycle looks like,” commented expert Amit Daryanani of Evercore ISI. “The new expectations are knocking your socks off,” agreed JPMorgan’s Samik Chatterjee.
In response to the numbers and outlook, analysts massively increased their price targets for Dell shares. Wamsi Mohan from Bank of America and JPMorgan expert Chatterjee are now betting $500. Both the quarterly figures and the increased outlook exceeded expectations to an almost historic extent, Mohan praised. He significantly increased his annual estimates for sales and especially for earnings per share (EPS). The profit is unlikely to reach its peak in the current financial year, he said before possible discussions.
James Fish from the investment bank Piper Sandler almost tripled his target price from $167 to $497. He didn’t skimp on superlatives either: many market participants are likely to attest to Dell’s best quarter ever. He himself gave the company one of the best quarters he had ever seen in the tech industry. In addition, this is unlikely to remain a one-off phenomenon, as, according to Dell, the order backlog and pipeline are growing faster than sales./gl/ag/stk/tih/he
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