Dell and AMD Experience Pre-Market Surge in AI Rally
In pre-market trading, the shares of Advanced Micro Devices (AMD) and Dell Technologies (DELL) are surging due to the AI rally. Both companies are experiencing significant gains that will likely result in fresh records during the opening print. Specifically, DELL is up 30% to a possible opening price of $122.48. In comparison, the stock has already gained 23% year-to-date while last year’s gains were around 132%. Meanwhile, AMD was up by approximately 9% yesterday and up by 3% in after-hours trading.
Significant Orders From Dell
In a research note from Malus Research, it was noted that traditional server CPUs are helping to support AMD margins and are lending further upside to its data center segment. Additionally, Dell received meaningful orders for the AMD-manufactured Mi 300X, a new chip that will start shipping this quarter and pick up throughout the year. While there have been concerns that AMD is lagging behind Nvidia in terms of AI technology, this development puts AMD at the forefront of investor’s minds.
AMD Compared to Nvidia
While AMD’s gains are impressive, they still fall short of Nvidia’s gains. Nvidia is up 60% and is expected to tack on another 1.2%, which will likely lead to another record on the open.
Overall, the surge in pre-market trading for both Dell and AMD indicates the increasing importance of AI in the tech industry.
AI and the Importance of Server CPUs
As noted by Malus Research, server CPUs are playing an increasingly important role in supporting AMD margins and contributing to its data center segment. This importance is due to the increasing demand for AI-driven technology.
The Role of Dell in AI Technology
Dell is also playing an essential role in the AI industry, with significant orders being received for AMD’s new chip. These orders are likely to help increase the adoption of AI-driven technology and increase the importance of companies like Dell in the AI market.
AI’s Increasing Importance to the Tech Industry
With the increasing popularity of AI-driven technology, it’s becoming more evident that companies like Nvidia, AMD, and Dell will play essential roles in shaping the future of the tech industry. As such, it’s essential for investors to keep a close eye on these companies and their developments in the AI space.
Hot Take: Dell and AMD’s Surge in Pre-Market Trading Reflects the Increasing Importance of AI in the Tech Industry 🚀
The surge in pre-market trading for Dell and AMD reflects the growing importance of AI in the tech industry. With significant orders for AMD’s new chip and the increasing use of server CPUs, companies like Dell and AMD are playing essential roles in shaping the future of AI-driven technology. While Nvidia still reigns supreme in the AI space, AMD’s significant gains indicate that the company is worthy of investor consideration. As such, it’s essential for investors to keep a close eye on developments in the AI space as the technology continues to prove its worth in various industries.
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