Dell Technologies Inc. (DELL) shares are experiencing a dip on Wednesday, mirroring the ongoing weakness in the technology sector. This follows a significant decline in the Nasdaq Composite Index on Tuesday, which fell by 3.26%. The market downturn was fueled by August’s ISM Manufacturing PMI data indicating an economic contraction, further exacerbated by the drop in Nvidia Corporation (NVDA) shares, which closed Tuesday down 9.7%.
Despite the current market headwinds, Dell Technologies continues to make progress in the artificial intelligence space. The company announced on Wednesday that Red Hat Enterprise Linux AI (RHEL AI) has been designated as a preferred platform for AI deployments on Dell PowerEdge servers. This partnership will offer organizations a tested and validated solution for implementing AI and machine learning (AI/ML) strategies, enabling them to scale their IT systems and power enterprise-level applications. The availability of RHEL AI on Dell PowerEdge servers is expected in the third quarter of 2024.
“Validating RHEL AI for AI workloads on Dell PowerEdge servers provides customers with greater confidence that the servers, GPUs, and foundational platforms are tested and validated on an ongoing basis. This simplifies the gen AI user experience and accelerates the process to build and deploy critical AI workloads on a trusted software stack,” said Arun Narayanan, senior vice president of Dell Technologies.
While the current market conditions may be causing some uncertainty, Wall Street analysts remain optimistic about Dell Technologies’ future performance. The average 12-month price target for Dell Technologies stock is $144.94, with a high target of $165 and a low target of $97. Notably, 16 analysts covering Dell Technologies have positive ratings, while only 2 have neutral ratings. In the past month, 16 analysts have adjusted their price targets, indicating continued confidence in the company’s potential.
Dell Technologies’ stock has performed well year-to-date, with a 46.25% increase. The average analyst price target suggests that the stock could have further upside ahead. For a comprehensive overview of Dell Technologies, you can visit their website. To gain an even deeper understanding of the company, consider trying Benzinga Pro, a powerful tool that provides in-depth insights and analysis.
At the time of publication Wednesday, Dell Technologies shares were down 1.4% at $109.22. While the market may be experiencing fluctuations, Dell Technologies’ strategic partnerships and positive analyst forecasts offer a glimpse of potential growth and future success.
