Why Dell Technologies soared 30% in a week?

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Why Dell Technologies soared 30% in a week?

The stock price of the computer hardware giant, Dell Technologies soared 29.07% in one week. It rose from $54.60 on 30th August to $70.46 on 6th September 2023, marking the biggest one-week gain for the stock on record. Robust earnings led by strong PC demand and partnerships with Nvidia drove shares higher. 

Dell Stock Soars 30% in One Week: Historical Share Price Performance


Dell Stock Soars 30% in One Week: Q2 FY24 Earnings Supports

During the second quarter, the revenue from the servers and networking segment rose 11% quarter-over-quarter (QoQ) reaching $4.27 billion. This growth was driven by increased demand for servers optimized for AI applications.

After the announcement of the results, the share price jumped from $56.27 on August 31 to $68.40 on 1st September. 

Parameters (Numbers in $ billions)Q2 FY24Q2 FY23Growth Change
Total Net Revenue22.9326.43-13%
Operating Income1.171.27-8%
Net Profit0.460.51-10%

Dell Stock Soars 30% in One Week: Estimates of PC Market Supports

According to the estimate given by IDC, the PC shipment is expected to have a 3.7% year-over-year growth in 2024. Also, the PC shipments are forecasted to reach a total of 261.4 million units. Hence Dell being one of the leading PC manufacturers in the world, is well-positioned to benefit from this growth.

Dell Stock Soars 30% in One Week: Dell’s Partnership with Nvidia

Dell Technologies and NVIDIA are teaming up to help businesses create and use smart AI models within their own offices. This will make it faster and safer for them to improve customer service, understand markets, search for business information, and do many other tasks.

The joint venture will introduce Project Helix. It will have a series of full-stack solutions with technical expertise and pre-built tools based on Dell and NVIDIA infrastructure and software. The announcement of the project can be another factor for all-time highs in the share price.

Dell Stock Soars 30% in One Week: Key Takeaways

  • Dell Technologies' stock price surged by 29.07% in one week, reaching $70.46 on September 6, 2023, driven by AI and Q2 earnings results.
  • The company's financial performance in Q2 FY24 saw declines in total net revenue (-13%), operating income (-8%), net profit (-10%), but an increase in EBITDA (6%) compared to Q2 FY23.
  • Dell is expected to benefit from a 3.7% YoY growth in the PC market in 2024, with PC shipments forecasted to reach 261.4 million units, according to IDC.
  • Dell's partnership with NVIDIA for Project Helix aims to help businesses implement smart AI models.