On Friday, shares of Dell Technologies Inc. (NYSE:DELL) surged, reaching an unprecedented high amidst the broader rally in companies developing generative artificial intelligence (AI) applications. This growth reflects the market’s optimistic outlook for the burgeoning technology.

Nvidia Corporation (NASDAQ:NVDA), a prominent player in the AI sector, reported impressive quarterly earnings on Wednesday and provided a revenue forecast surpassing Wall Street expectations. Their success indicates continued robust customer investments in generative AI. The positive outlook for AI spending positively impacted Dell, which recently introduced AI-focused personal computers and enhanced servers through a collaboration with Nvidia. Bob O’Donnell of TECHnalysis Research remarked, “This represents a significant and timely new opportunity for Dell.”

Dell’s stock experienced a 6% increase, reaching $162.82 after modest intraday profit-taking, poised to add $6.6 billion to its market capitalization. Notably, the stock has more than doubled in value this year and has closed higher for three consecutive trading sessions.

During the same trading session, shares of key semiconductor companies also experienced gains. Nvidia increased by approximately 1%, Qualcomm Inc. (NASDAQ:QCOM) rose by 4%, and the U.S.-listed shares of Arm Holdings plc (NASDAQ:ARM) were up 2.3%.

Software firms C3.ai Inc. and Palantir Technologies Inc. (NYSE:PLTR) also saw their shares increase by 0.6% and 1.6%, respectively.

Akshara Bassi, an analyst at Counterpoint Research, commented, “Chip companies are expected to reap substantial benefits from AI chip-related orders, primarily from cloud service providers who have indicated a significant increase in their capital expenditures for 2024.”