Coffee With Greta: AI-Fueled Record


DJIA Futures: -34 (-0.1%)

SPX Futures: +1 (0.02%)

NASDAQ Futures: +7 (+0.04%)

Good morning friends!

Futures are flat after Thursday’s record-breaking climb.

Let’s get right to it!

Record Highs

The Nasdaq and the S&P 500 both ended the month of February at record highs. 

The tech-heavy Nasdaq ended Thursday’s session 0.6% higher at 16,082.33, the first record close since 2021. 

The S&P rose 0.4% to a record close of 5,097.27. 

All the major indexes rose in February with the Dow ending the month 1.8% higher, the S&P 500 rising 4.6%, and the Nasdaq leading with a 5.2% monthly gain. 

It was the Dow’s first four-month winning streak since May 2021.

Dell Surges On Earnings Beat, Strong AI Demand

Dell Technologies (DELL) shares are surging 27.3% ahead of the open after beating Q4 expectations on the top and bottom line. 

Here’s how the computer software company’s results compared to analysts’ estimates: 

  • EPS: $2.20 vs 1.73 expected
  • Revenue: $22.32 billion vs $22.16 billion expected

The stock is on track to open at a fresh all-time high following that beat. 

Dell reported a surge in demand for its artificial intelligence servers as its backlog rose to $2.9 billion from $1.6 billion in Q3.

The majority of those servers are powered by Nvidia (NVDA) H100 chips.

Dell’s COO also said the company is seeing strong interest in servers equipped with the next generation of AI chips, including Advanced Micro Devices (AMD)’s MI300x and Nvidia’s H200.

That demand is helping to push NVDA shares up 1.1% and AMD shares up 2.7%.

Hewlett Packard Drops On Revenue Drop

Hewlett Packard Enterprise (HPE) shares are falling 3.2% in premarket trade after reporting a steep drop in fiscal Q1 revenue. 

Here’s how the information technology company’s results compared to analysts’ estimates: 

  • Adjusted EPS: $0.48 vs $0.45 expected
  • Revenue: $6.76 billion vs $7.09 billion expected

Revenue tumbled 14% year over year. 

HPE forecast fiscal Q2 revenue between $6.6 billion and $7 billion vs $7.1 billion expected. 

In Case You Missed It

  • Pending home sales dropped unexpectedly in January. The National Association of Realtors reported the number of contracts signed to purchase a home fell 4.9% vs expectations for a 1.5% increase. It was the largest monthly drop in pending sales since August 2023 as rates pushed higher at the end of January. Transactions were down 8.8% year over year.

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