AI newcomer! Dell's closing price hits a new high, with a five-year increase surpassing Apple

Dell has recently risen again!

When it comes to the recent AI newcomers, Dell cannot be missed. Boosted by Dell's transformation into the AI business and the better-than-expected AI server sales in the latest quarter, Dell's stock price surged on Wednesday, rising by 8.56% in a single day to close at a historic high of $128.5, leaving investors exhilarated.

More importantly, Dell's stock price has accumulated a 309% increase over the past five years, outperforming Apple's 245% increase during the same period.

This has led investors to wonder: What has happened to Dell in recent years?

Many investors have this doubt, as Dell's fame has been declining year by year since the millennium, after rising with the wave of personal computers (PCs) and becoming a "small transparent" for a long time.

The turning point came in 2016 when artificial intelligence technology exploded, and Dell realized this was an opportunity for a turnaround. They began to heavily invest in AI.

In 2018, Dell launched the new high-end storage PowerMax, which integrated a machine learning engine; in 2020, they released AI servers PowerEdge and AI PCs, covering AI servers, AI storage platforms, and personal computer products with embedded AI features. Dell has it all!

It can be said that Dell has armed itself to the teeth with AI.

At the same time, Dell has been making money hand over fist. In the performance report for the fourth quarter of the fiscal year 2024 released in February, Dell's net profit for the fourth quarter increased by 91% year-on-year to $1.16 billion.

Dell's Chief Operating Officer Jeff Clarke stated:

"The strong growth in Dell's performance is largely attributable to AI technology. AI-optimized server orders increased by 40% compared to the previous period, and the backlog of orders nearly doubled, reaching $2.9 billion at the end of our fiscal year."

Dell has truly mastered the capital market. If they were simply producing traditional personal computers and related hardware, they would not attract investors because there would be no room for imagination. But by adding the concept of AI, the landscape suddenly opens up.

A successful example next door that has risen with AI is the GPU expert NVIDIA.

By the way, Dell's Chief Operating Officer Jeff Clarke also revealed in February:

NVIDIA will launch the B200 product with the "Blackwell" architecture in 2025, with power consumption possibly reaching 1000W, and Dell's unique technology will be used for GPU cooling.

With the partnership with NVIDIA, Dell's future looks promising