Nvidia (NVDA) (Purchased 0.24 units @ $471.73) was up on Friday by almost 4% but was outshined by AMD, that saw a +5% performance thanks to AI server demand from Dell Technologies, that posted better-than-expected quarterly earnings and registered a +30% performance on Friday. The fourth quarter revenue was $22.3 billion, above analysts’ expectations even if it was down 11% from last year. The main factor that made the stock value jump were orders for AI-optimized servers, which grew around 40%. EPS of $1.59 and net income of $1.16 billion were below analysts’ estimates, but the net income was up 89% since last year. Talking about its fiscal year, Dell had revenue of $88.4 billion, ahead of analysts’ projections and almost doubled the expected net income of $4.9 billion, posting a $7.7 billion net income. The company also increased by 20% its dividend to $1.78 per share, a move that surely will attract other investors and that the CFO McGill called a “testament to our confidence in the business”. Now let’s talk again about AMD. Thanks to its Friday’s rally, AMD surpassed $300 billion market cap, and is considered to be the second-best player in the AI market, as it is expected to continue benefiting from the robust demand for its AI chips in the long term.
Apple (AAPL) (Purchased 0.6 units @ $183.96) has been removed from Goldman Sachs Conviction List of top stocks one month after first-quarter earnings were reported. On the other hand, Citigroup kept its buy rating on Apple with a price target of $225 after a Bloomberg report about the possibility that Apple will unveil an AI tool for IOS app developers, potentially within the year, a development that could position Apple as a formidable competitor in the Generative AI sector.
Author: Filippo Ferrero