Michael Dell, Chairman and CEO of Dell Technologies, is speaking at the Mobile World Congress 2024 in Barcelona, Spain, on February 27, 2024.
Joan Cros | Nurphoto | Getty Images
Dell shares rose more than 11% on Wednesday to an all-time high after Morgan Stanley raised its price target and predicted that the company would rake in sales from the insatiable demand for artificial intelligence servers.
Dell is seeing accelerating momentum, especially in winning business to build AI servers, unlocking a new bull case for the stock, Morgan Stanley analyst Erik Woodring wrote in a note on Wednesday. He upgraded his price target on Dell from $128 per share to $152 a share and called it a top pick.
“All-in, we are hearing about more AI server momentum at Dell than at any other OEM,” Woodring wrote, saying that he expected about $10 billion of AI server revenue in the company’s fiscal 2025 — ending next February.
Wednesday’s move was the largest since March 1, when the stock surged after earnings showed that the computer manufacturer has benefited from the AI boom.
Most AI servers are built around Nvidia’s chips, which have become prized in the technology industry because they are used to deploy advanced AI models from companies like Google, OpenAI and Meta. Dell sells servers using the newest Nvidia AI chips, including its H100 GPU and the latest Blackwell-generation chips.
At Nvidia‘s annual conference in March, Nvidia CEO Jensen Huang appeared to send customers who want the latest AI chips to Dell for orders.
“You’re going to need an AI factory,” Huang said. “And nobody is better at building end-to-end systems of very large scale for the enterprise than Dell.”
“Michael [Dell] is here and he’s happy to take your order,” Huang continued.
“While the near-exponential ramp of Nvidia GPU shipments and AI servers builds make it difficult to pin down exact growth rates,” Woodring wrote, he has confidence in Dell’s business for various reasons. Among those reasons are the strengthening demand for AI servers and that he models Dell’s market share increasing.
He wrote that Dell may be able to upsell its customers and “attach” additional hardware, such as data storage.
Dell is expected to announce its April quarter earnings on May 30. Nvidia reports earnings for its quarter ending in April on May 22.
Dell’s other business, building PCs for consumers and businesses running Microsoft Windows, could get a boost next week when Microsoft reveals new capabilities at its conference, including long-awaited AI features that many analysts expect to drive demand for new PCs.
PC sales have slumped for two years in a post-pandemic hangover, as consumers and enterprises who bought new machines during 2020 and 2021 pushed back the timeline for their next upgrades.
But the PC industry is on course to grow again and is outperforming lowered expectations, Woodring wrote, which will benefit Dell.
“We remain bullish on the PC market recovery as we are not only hearing about upgrade/refresh demand in our recent CIO and VAR checks, but also seeing upward revisions to notebook ODM builds in recent months,” Woodring wrote.
White House Senior Advisor Elon Musk walks to the White House after landing in Marine One on the South Lawn with U.S. President Donald Trump (not pictured) on March 9, 2025 in Washington, DC.
Samuel Corum | Getty Images News | Getty Images
Tesla shares fell in premarket trade on Monday after CEO Elon Musk announced plans to form a new political party.
The stock was down 7.13% by 4:27 a.m. E.T.
Musk said over the weekend that the party would be called the “America Party” and could focus “on just 2 or 3 Senate seats and 8 to 10 House districts.” He suggested this would be “enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people.”
Now tech billionaire’s reinvolvement in the political arena is making investors nervous.
“Very simply Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” Dan Ives, global head of technology research at Wedbush Securities, said in a note on Sunday.
“While the core Musk supporters will back Musk at every turn no matter what, there is broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track.”
Musk’s previous political foray earned him Trump’s praise in the early days, but he has since drawn the ire of the U.S. president.
The two have clashed over various areas of policy, including Trump’s spending bill which Musk has said would increase America’s debt burden. Musk has taken issue to particular cuts to tax credits and support for solar and wind energy and electric vehicles.
Trump on Sunday called Musk’s move to form a political party “ridiculous,” adding that the Tesla boss had gone “completely off the rails.”
Musk is contending with more than just political turmoil. Tesla reported a 14% year-on-year decline in car deliveries in the second quarter, missing expectations. The company is facing rising competition, especially in its key market, China.
Jonathan Ross, chief executive officer of Groq Inc., during the GenAI Summit in San Francisco, California, US, on Thursday, May 30, 2024.
David Paul | Bloomberg | Getty Images
Artificial intelligence semiconductor startup Groq announced Monday it has established its first data center in Europe as it steps up its international expansion.
Groq, which is backed by investment arms of Samsung and Cisco, said the data center will be located in Helsinki, Finland and is in partnership with Equinix.
Groq is looking to take advantage of rising demand for AI services in Europe following other U.S. firms which have also ramped up investment in the region. The Nordics in particular is a popular location for the data facilities as the region has easy access to renewable energy and cooler climates. Last month, Nvidia CEO Jensen Huang was in Europe and signed several infrastructure deals, including data centers.
Groq, which is valued at $2.8 billion, designs a chip that the company calls a language processing unit (LPU). It is designed for inferencing rather training. Inferencing is when a pre-trained AI model interprets live data to come up with a result, much like the answers that are produced by popular chatbots.
While Nvidia has a stranglehold on the chips required for training huge AI models with its graphics processing units (GPUs), there is a swathe of startups hoping to take a slice of the pie when it comes to inferencing. SambaNova; Ampere, a company SoftBank is in the process of purchasing; Cerebras and Fractile, are all looking to join the AI inference race.
European politicians have been pushing the notion of sovereign AI — where data centers must be located in the region. Data centers that are located closer to users also help improve the speed of services.
Global data center builder Equinix connects different cloud providers together, such as Amazon Web Services and Google Cloud, making it easier for businesses to have multiple vendors. Groq’s LPUs will be installed inside the Equinix data center allowing businesses to access Groq’s inference capabilities via Equinix.
Groq currently has data centers in the U.S. and Canada and Saudi Arabia with its technology.
Don’t miss Groq CEO Jonathan Ross on Squawk Box Europe at 7:45 a.m. London time.
Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.
The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.
“MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”
SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.
The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.
David Laude, who served as the crew’s commander, described a typical day.
“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”
An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.
“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.
