Shares of NVIDIA Corporation (NVDA.US) were boosted after Dell Technologies Inc. (DELL.US) reported earnings on Wednesday (2nd). Analysts said the server maker's comments helped validate NVIDIA's view of a strong and continuously expanding AI market.

D.A. Davidson analyst Gil Luria told MarketWatch that Dell's earnings further demonstrated that momentum in the enterprise AI computing market is no longer limited to existing hyperscale cloud service providers.

The server manufacturer reported strong quarterly results, with revenue from its AI server business doubling YoY.

Analysts believe that while hyperscale cloud service providers continue to show strong demand for computing power, Dell's results indicate that data center construction is also supporting growth in enterprise hardware demand, which is positive for NVIDIA.

NVIDIA shares spiked 3.2% on Wednesday.

Rebecca Wettemann, CEO of technology research firm Valoir, said broader market factors may also have supported NVIDIA's share price. As investors reacted to oil price movements and declines in US Treasury yields, the broader market rebounded on Wednesday, which may have benefited NVIDIA. However, she said in emailed comments that markets are likely to remain volatile amid geopolitical and economic uncertainty.

Wettemann said NVIDIA's fundamentals remain strong, with its recent earnings and guidance convincing investors that demand remains robust and that the company maintains a highly significant moat in its chip business.
~

AASTOCKS Financial News
Website: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
Nvidia (C)	11185	275 (-)	0.110	8.1 X
Nvidia (P)	11090	168 (-)	0.051	6.9 X