Nvidia, agreement with Dell before the quarterly report. But Amazon freezes it out

If 2023 will be remembered as the year of generative artificial intelligence in the form of chatbots, this year seems to be the year of the next step: bringing this innovation to products. All manufacturers of consumer electronics devices are trying to do this. Starting with smartphones. But it is mainly on personal computers that the most decisive steps are being taken.

Proof of this is the agreement announced in the past few hours between Dell and Nvidia, two of the longest-lived companies in the American digital dream: the former has been producing personal computers for around 40 years. The latter, on the other hand, has always concentrated on the development of graphic accelerators, but with the arrival of generative artificial intelligence, it has found a new financial el dorado thanks to chips dedicated to this technology, breaking all records on Wall Street and becoming a trillion dollar company in the space of a few months.

The agreement between Dell and Nvidia calls for the expansion of the 'Dell AI Factory', endorsing a new set of solutions and service enhancements that accelerate AI adoption and innovation. "Organisations are moving quickly to seize the opportunities of artificial intelligence, which is why our partnership with Nvidia is so important," said Michael Dell , founder and ceo of Dell. These words were echoed by Jensen Huang, founder and CEO of Nvidia: 'Generative artificial intelligence requires a new kind of IT infrastructure: an artificial intelligence factory that produces intelligence. Together, we provide industries around the world with a complete offering, including computing, networking and software'.

It must be said that the deal with Dell comes just hours before the release of Nvidia's quarterly accounts, due out tomorrow evening, 22 May (markets closed). For what is considered this week's main market mover, Bloomberg consensus predicts that Nvidia's first quarter of 2024 is expected to close with revenues of $24.68 billion (+243% year-on-year), up from $22.1 billion in the previous quarter.

"By closing the fiscal year in January, Nvidia allows us to phase out quarterly results by a month and have one of the heavyweights in the equity indices not concentrated in the usual highlight weeks of the reporting season. - commented Angelo Meda, head of equities at Banor - Nvidia has risen $250 since 21 February, when it reported better-than-expected year-end results, amounting to $600 billion in additional capitalisation, not far off the total capitalisation of the Italian equity index. The options point to a movement after the results of +/- 9% (another 200 billion of potential upward or downward movement), something that can destabilise the indices, even though the stock has not had huge shocks in recent quarters despite results well above expectations, having discounted them in abundance in the days before'. According to Meda, 'This will be the event of the next few days that will focus the attention of traders: the results of a single company that alone is worth 5% of the S&P500 index, that contributes a quarter of the rise of the same index since the beginning of the year, and that has surpassed the 2 trillion dollar threshold, reserved for few companies in the world'.