top of page

News

AI's dark horse

Dell shares have outperformed Nvidia this year.

AI's dark horse
Wix Ai Image
By
Lucy Brewster
30 May 2024
less than 3 min read
Become smarter in just 5 minutes

Ai Onion delivers quick and insightful updates about the most important and impactful Ai news and insights from careers to crime

Thanks for subscribing!

The brand that made the desktop your parents had in the '90s is making a surprising comeback as the latest tech stock to shine under the AI spotlight.

Dell, which makes computer hardware and laptops, has enjoyed strong tailwinds recently by debuting new PCs enhanced specifically for AI, as well as getting a shoutout from the reigning king of AI—Nvidia CEO Jensen Huang himself. Shares are up 127% year-to-date, outpacing Nvidia, though the stock fell 5% this morning ahead of earnings this evening.


Analysts expect the firm to report $21.65 billion in revenue for the first quarter today, up about 3.5% from the $20.92 billion it posted last year. But earnings per share are expected to come in at $1.25 per share, a 4.6% decline from last year. Backlog orders doubled last quarter thanks to companies preparing for a surge in consumer demand for new, AI-compatible PCs—something Dell seems primed to benefit from in coming quarters.


Another upcoming boon for Dell is its expected debut on the S&P 500 Index. Even though its market cap is about $127 billion, it hasn’t been added previously because of a rule prohibiting companies that have multiple share classes—a rule that was recently reversed.

bottom of page