U.S. PC and server manufacturer Dell Technologies (hereinafter Dell) saw its stock price surge more than 30% in just one day. The boom in the artificial intelligence (AI) and semiconductor industries pushed Nvidia's market capitalization to exceed $2 trillion (approximately 2,672 trillion KRW) for the first time based on the closing price.
On the 1st (local time) at the New York Stock Exchange, Dell's stock closed at $124.59, up 31.62% from the previous session. During the trading session, it rose to $131.06, setting a new 52-week high.
According to U.S. economic media CNBC, Dell went private in 2013 and relisted on the stock market in 2018, with a market capitalization of about $16 billion (approximately 21.376 trillion KRW) at the time of relisting. As of the closing price on this day, its market capitalization grew to about $88 billion (approximately 117.568 trillion KRW).
The stock price surge was influenced by the company’s quarterly earnings report released the previous day, which showed a sharp increase in AI-related sales.
The company stated that servers optimized for AI recorded sales of $4.9 billion (6.5464 trillion KRW). Jeff Clarke, Chief Operating Officer (COO), said, "Strong momentum for AI-optimized servers continues, and orders have increased by nearly 40% year-over-year."
Morgan Stanley analysts named Dell a "top pick" and raised the target price from $100 to $128. They evaluated, "The strengths in AI server orders and backlog show that Dell’s AI story is just beginning and is gaining momentum."
Wells Fargo also raised Dell’s target price to $140 and recommended "overweight." Riding the wave brought by Dell, stock prices of AI semiconductor and server companies also rose significantly.
Nvidia’s stock closed at $822.79, up 4.0% from the previous session, with the company’s market capitalization reaching $2.056975 trillion (approximately 2,748 trillion KRW) based on the closing price.
Nvidia’s market cap had surpassed $2 trillion intraday on the 23rd but fell below that level at the close; however, it surpassed $2 trillion based on the closing price for the first time in a week. It ranks third in market capitalization after Microsoft and Apple.
Another company making servers with Nvidia chips, Super Micro Computer, also saw its stock price rise 4.5% that day.
Other semiconductor companies riding the AI rally, Broadcom and Marvell Technology, rose 7.6% and 8.3%, respectively. AMD, a competitor of Nvidia, also saw its stock price increase by 5.3%.
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