Shares of Advanced Micro Devices (AMD) and Dell Technologies (DELL) are moving in pre-market trading as the AI rally continues to ride high. AMD has reached a $300 billion market valuation, while Dell has received new orders for one of its chips. Shipping for the novel technology will begin this quarter, according to a note from Melius Research.
Yahoo Finance Senior Reporter Jared Blikre joins the Live show to break down the latest movements for these companies.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
BRAD SMITH: AI trade picking up some steam this morning. We're tracking two trending tickers on our site, AMD and Dell-- both climbing pre-market around AI hype. Yahoo Finance's Jared Blikre, he's over at the big board tracking the market action. Jared, let's start with Dell. What are you seeing there?
JARED BLIKRE: I'm seeing a huge move in the pre-market trading to the upside, up 30%. Now, this is going to be good for a fresh record. The opening print could be around $120. That's $122.48 that you're looking at right there. And this is a stock that has been on fire, up 23% year to date. That doesn't include the 30% in the pre-market. And over the last year, we can see gains there of about 132%.
Now, there is a tie-in to AI. And this has to do with the chips that are powering it. And AMD is getting a ride off of it this morning as well. The stock was up about 9% yesterday. And it was up 3%. It's up 3% now in the after hours trading. And here's the tie-in. And here's-- this comes from a research note from Melius Research. Traditional server CPUs picking up, help support AMD margins. And it lends further upside to its data center segment.
Also, we believe Dell received meaningful orders for the AMD-made MI300X. That's a new chip that will start shipping this quarter and pick up throughout the year. Now, there have been concerns that AMD is really lagging Nvidia in terms of AI technology. This doesn't necessarily resolve that one way or the other. But it does put AMD into the forefront of investors' minds.
These are the year to date percentages in the background, along with the pre-market quotes. So AMD, up 30%, another 3% in the pre-market. But that doesn't really compare to Nvidia, which is up 60%. And by the way, going to tack on another 1.2%. Probably good for another record on the open. Guys.
