Dell Technologies (NYSE:DELL) stock gained about 2% in yesterday’s extended trading session. The upside resulted from Dell’s announcement of a new “Dell AI Factory with Nvidia” at Nvidia’s (NVDA) GTC developer conference yesterday. The partnership will help Dell accelerate enterprise adoption of artificial intelligence (AI) technologies by providing end-to-end AI solutions.
The new platform is expected to combine Dell’s compute, storage, client device, software, and services capabilities with NVDA’s advanced AI infrastructure and software suite. The AI solution will be available globally through Dell’s traditional distribution channels and its Dell APEX, a cloud services and solutions platform.
Other AI-Related Offerings
Apart from this new platform, Dell plans to introduce Dell PowerEdge XE9680 rack servers, designed to support Nvidia’s new GB200 super chip. Also, Dell and Nvidia will provide a retrieval-augmented generation solution to help expedite enterprise AI adoption.
The decision comes amid rising competition in the AI-powered PC market, where several companies like HP Inc. (HPQ), Arm Holdings (ARM), and Super Micro Computer (SMCI) are vying to gain market share. HP and Dell are expected to launch their AI PCs later this year.
Is DELL Stock a Good Buy Now?
By strengthening its GenAI offerings, Dell seems well-positioned to benefit from the strong demand for AI offerings. Importantly, DELL stock has surged over 40% in the past year, benefiting from the AI boom, outperforming the Nasdaq 100 (NDX) rally of 6%.
Overall, Dell has a Strong Buy consensus rating on TipRanks based on 12 Buy, one Hold, and one Sell recommendations. The analysts’ average price target on Dell stock of $116.79 implies a 9.53% upside potential.
