Technology

Dell Quarterly AI Server Revenue Could Drop by Double Digits Sequentially, BofA Says

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Dell Technologies (DELL) is expected to log mixed fiscal fourth-quarter results, with artificial intelligence server revenue seen dropping by a double-digit percentage sequentially amid “shipment challenges” with Nvidia’s (NVDA) Blackwell generative AI system, BofA Securities said in a note. The computer manufacturer is scheduled to report results Feb. 27. BofA expects adjusted earnings of $2.50 a share on revenue of $24.67 billion. Wall Street is looking for $2.52 and $24.57 billion, respectively. AI server revenue is projected to decline 14% from the previous quarter to $2.5 billion, according to BofA. The brokerage reduced its price objective on the Dell stock to $150 from $155, while reiterating its buy rating. The infrastructure solutions group division’s fourth-quarter revenue is expected to jump 26% year over year, while client solutions group is seen rising 2.6%, according to BofA. The brokerage sees Dell’s AI server backlog exiting the quarter at $5.6 billion. “Other server […]

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Nvidia’s Stock Is Climbing Again, and This Overlooked Reason Is Helping

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Stock is having its best month since May and has retraced more than 90% of what it lost during the DeepSeek dive Shares of Nvidia Corp. notched another gain Tuesday, as investors have been given more reason to believe the perceived threat from DeepSeek’s artificial-intelligence platform is overblown. BofA Securities analyst Vivek Arya said while Wall Street continues to debate the impact of China-based DeepSeek’s “overstated” claim of lower costs to develop AI, new plans to boost AI spending keep emerging. Nvidia’s stock (NVDA) rose 0.4% on Tuesday and has climbed 6.9% amid a three-day win streak. It has now retraced about 90% of the selloff it suffered after the DeepSeek threat first came to light – causing a 17% plunge in Nvidia’s stock on Jan. 27, and a total 18.2% dive through Feb. 3. BofA’s Arya said global investors may have also missed the announcement last week at the

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Broadcom and Marvell Could Be the Big Losers If Arm Moves Into Chipmaking. Here’s Why.

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Arm Holdings shares rose on the chip-design firm’s reported move into making its own semiconductors. The losers from the shift could be Broadcom and Marvell Technology. A move into chipmaking would mark a huge shift for Arm, which built its business on licensing out chip designs. The risk is that Arm could be viewed as a competitor for some of its biggest customers such as Qualcomm and Nvidia. However, Arm-produced chips could instead end up taking some value away from Broadcom and Marvell who help design in-house processors for major technology companies. Arm does most of its business licensing its designs for handsets, but it also has a growing position in high-end cloud-server processors. Its first chip is set to be a central processing unit for large data centers, to run artificial-intelligence applications with Meta Platforms as an initial customer, according to a report from the Financial Times. Rather than

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Meta Stock’s Winning Streak Has Outlasted the Biden Administration

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Meta Platforms was set to extend its winning streak for a 20th consecutive trading day on Friday, cruising to new highs on a wave of support for the Instagram and Facebook parent’s artificial-intelligence strategy. Shares of Meta Platforms rose 1.1% to $736.70, on track for a record high, according to Dow Jones Market Data. The stock has stomped its record for the previous longest rally, which lasted 11 days in September 2015. Meta’s latest winning streak kicked off on Jan. 16, following reports that President-elect Donald Trump was weighing an executive order to delay the U.S. ban on TikTok. The rally is so long that it began in the final days of the Biden administration — since then, it has persisted through some of the most significant, market-rocking news. That includes the looming threat of chip tariffs and the broad selloff triggered by Chinese start-up DeepSeek. In fact, Meta was

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Alphabet’s AI Models ‘More Efficient’ Than DeepSeek, Google DeepMind CEO Says

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Alphabet’s (GOOG, GOOGL) Google DeepMind Chief Executive Demis Hassabis told employees that the company’s artificial intelligence models are more efficient than those of China’s DeepSeek, CNBC reported Friday, citing audio from an all-hands meeting in Paris. Hassabis said DeepSeek’s reported AI training costs were “exaggerated” and that it may have used more hardware and relied on Western AI models, according to the report. “We actually have more efficient, more performant models than DeepSeek,” Hassabis reportedly said. “So we’re very calm and confident in our strategy and we have all the ingredients to maintain our leadership into this year.” The meeting, attended by Alphabet CEO Sundar Pichai and other executives, included answering employee questions about AI and DeepSeek, CNBC reported.

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Applied Materials Beat Quarterly Estimates. Why the Stock Is Lower.

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Shares of Applied Materials were falling Friday after the chip equipment maker issued mixed financial guidance. Applied Materials stock fell 5% to $175 in premarket trading. Chip maker stocks were also in the red, with Lam Research down 1.3%, while KLA Corp. was 0.7% lower. Late Thursday, the company reported adjusted earnings of $2.38 per share for its first fiscal quarter ended Jan. 26, beating Wall Street’s call for $2.28, according to FactSet. Net revenue of $7.17 billion was above the consensus estimate of $7.15 billion. “We delivered strong financial performance in the first fiscal quarter, with record revenue, gross margin expansion and robust shareholder distributions,” said Chief Financial Officer Brice Hill in the earnings release. One of those metrics was highlighted by William Blair analysts Jed Dorsheimer and Mark Shooter, who rate Applied Materials at Market Perform. “Gross margin reached 48.9%, a level not seen in 25 years, from

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Nvidia Stock Rises. This Is When the Next Big AI Sales Boost Will Come.

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Nvidia stock was rising early Friday. The chip maker could face some obstacles in shipping new artificial-intelligence hardware in the first half of the year but there’s reason to be patient. Nvidia shares were up 0.6% at $136.10 in premarket trading. The stock rose 3.2% on Thursday. Nvidia’s multimillion-dollar GB200 NV liquid-cooled rack systems are expected to be in high demand this year as the most advanced AI infrastructure. However, it could take some time before that turns up on the company’s top line. “Not unexpectedly, Nvidia GPU AI servers with GB200 drive a complex connectivity/power upgrade and, near-term, we estimate some growing pains. Our checks indicate that while JanQ DC [January-quarter data-center revenue] is expected in-line, AprQ could be more flattish as near-term ramps remain modest,” wrote Mizuho analyst Vijay Rakesh in a research note. Rakesh now expects Nvidia to report $36.7 billion in data-center revenue for the April

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Adobe Needs AI to Pay Off. Video Creation Could Be the Key.

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Adobe’s latest announcement could be just what investors eager to see companies start to make money from artificial intelligence have been waiting for. The software company said on Wednesday that its Firefly Video Model will now be available in public beta. Subscribers can use it to create videos straight from text entries, turn existing photos into videos, and change the camera angles of those clips using a variety of prompts. The video creation tool will be available at prices within two tiers: Firefly Standard and Firefly Pro. Firefly Standard starts at $9.99 a month while Pro starts at $29.99. “As we introduce Firefly capabilities, especially with the introduction of video, it gives us an opportunity to provide these new tiers that are additive that are going to bring a lot of value to our customers,” David Wadhwani, president of Adobe’s digital media business, said in an interview with Barron’s. Adobe

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Adobe Launching New AI Products to Create Videos, Images

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Adobe (ADBE) said Wednesday that it has launched its new Firefly app, which allows clients to generate videos and images using artificial intelligence technology. The company said it has introduced two offerings: the Firefly Standard plan, which starts at $9.99 and provides users with 2,000 video/audio credits per month and up to 20 five-second 1080p video generations, and the Firefly Pro plan, which begins at $29.99 and provides users with 7,000 video/audio credits per month, up to 70 five-second 1080p video generations. The company said a new Firefly Premium plan will be available soon for high-volume clients.

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Three Reasons Nvidia’s Stock Is Still Compelling, and Why It Could Rise 30% in the Next Year

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A screen of the S&P 500 still has Nvidia standing out, despite this year’s DeepSeek disruption for the stock. A year ago, a screen of the S&P 500 placed Nvidia Corp. at the top of the list of companies that were expected to show the most rapid increases in revenue from 2023 through 2025. Now it is time to run the screen again, using estimates through 2026. We ran that screen on Feb. 15 last year, using data as of the market close the previous day. Nvidia’s (NVDA) stock has returned 80% from Feb. 14, 2024, through Tuesday, while the S&P 500 SPX has returned 23%. All investment returns in this article included reinvested dividends. Nvidia’s stock has declined 1.1% this year, while the S&P 500 has returned 3.3%, through Tuesday. So one might conclude that the disruption on Jan. 27, when Nvidia’s stock sank 17.5% on the news that

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Micron Stock Falls as News on Outlook Disappoints

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Micron Technology stock tumbled on Wednesday after the company’s chief financial officer said there would be “no change or update” to the company’ second-quarter outlook and signaled a deterioration in margins for the third quarter. Speaking at the Wolfe Research Auto, Auto Tech and Semiconductor Conference, CFO Mark Murphy said there would be no adjustments to the guidance issued on Dec. 18. For the second quarter, Micron forecast adjusted earnings in the range of $1.33 to $1.53 a share. The latest consensus call among analysts surveyed by FactSet is for $1.44 a share. Management now expects third-quarter gross margins to be lower “by a few hundred basis points sequentially,” Murphy added, citing changes in both Micron’s mix of customers and industry conditions. The company told investors to expect second-quarter gross margins between 37.5% and 39.5%. Shares of the computer memory manufacturer were down 3.3% to $90.87, on pace for the

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Micron expects margins to decline in the next quarter, and its stock price fell sharply after the open

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Micron CFO mentions various factors that could weigh on margins for next quarter but also says that period should mark the low point Micron Technology Inc. sees a few factors that could weigh on margins next quarter, and that’s pressuring the stock on Wednesday. The maker of memory chips already forecast a 38.5% gross margin at the midpoint for its February quarter, which would be down from the 39.5% level seen in the last quarter. But speaking at a Wolfe Research conference on Wednesday, Chief Financial Officer Mark Murphy said while that outlook is still intact, the company now expects “a few hundred basis points” of sequential margin decline in the May quarter. Micron’s stock (MU) is off 2.6% in Wednesday morning action, having pared losses after being down as much as 7.1% earlier in the session. It’s currently the worst performer in the PHLX Semiconductor Index SOX on the

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