Dell and Samsung grab first-class tickets for AI hype train

Dell and Samsung are nan latest beneficiaries of nan existent frenzy of speculation surrounding thing AI related, pinch some vendors seeing a emergence successful stock prices related to their early AI prospects.

Shares successful Dell were said to beryllium up 8 percent successful extended trading pursuing nan Round Rock institution releasing its results for nan 2nd 4th of its financial twelvemonth 2024. These showed that gross was $22.9 billion, down 13 percent connected nan aforesaid play past year.

However, this fig was besides up 10 percent connected nan erstwhile quarter, pinch nan institution attributing this maturation to rising request for AI-optimized servers, arsenic good arsenic its PowerStore and PowerFlex retention systems. AI accounted for 20 percent of server gross successful nan first half of nan year, Dell said.

Similarly, Dell said it is seeing maturation successful request for its workstations designed to thief organizations tally analyzable AI workloads locally, pinch its commercialized customer gross hitting $10.6 billion. This accounted for nan lion's stock of nan Client Solutions Group 2nd 4th gross of $12.9 billion, which was down 16 percent year-on-year but up 8 percent connected nan past quarter.

Dell vice president and main operating serviceman Jeff Clarke said that nan institution continued to attraction connected nan astir profitable segments of nan marketplace wherever he claimed Dell has a starring position.

"Artificial intelligence is simply a beardown tailwind for each things information and compute," he said, adding that AI is "expanding nan TAM (total addressable market) for exertion spending and is projected to turn astatine 19 percent for nan adjacent mates of years to astir $90 billion, including hardware and services."

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The institution recently announced a portfolio of products and services tailored for generative AI, including validated designs for conclusion systems jointly engineered pinch Nvidia and master services to thief customers adopt nan technology.

Dell said it is raising its afloat twelvemonth gross expectations to beryllium successful nan scope of $89.5 cardinal to $91.5 billion, and hinted that it expected to spot maturation successful Q4, fueled by AI demand.

Samsung besides saw its share value rise much than 6 percent connected speculation that it will beryllium supplying precocious representation chips to Nvidia and connected its announcement of precocious capacity 32-gigabit DDR5 DRAM chips.

Reports claimed that Samsung will subordinate rivals SK hynix and TSMC successful supplying caller HBM3 chips to Nvidia for its high-end GPUs utilized for AI processing.

The caller 32Gb representation chips pave nan measurement to DRAM modules of up to 1TB successful capacity, Samsung said, targeting customers that require applications for illustration AI arsenic good arsenic datacenters and next-generation computing.

Mass accumulation of nan 32Gb DDR5 DRAM is scheduled to statesman by nan extremity of this year, according to Samsung. ®