Dell Technologies and Hewlett-Packard Co. both rose after tech website SemiAccurate reported that Nvidia was seeking an acquisition that would reshape the personal computer industry. The website said Nvidia has been in talks to acquire a "large enterprise" for more than a year.
Dell and HP are among the top PC manufacturers in the world. According to data from industry research firm Gartner, HP, headquartered in Palo Alto, California, accounted for 19% of the global market share in the first quarter, second only to Lenovo Group with a market share of nearly 27%; Dell, headquartered in Round Rock, Texas, had a market share of about 17%.
Nvidia is the world's most valuable company and the world's largest manufacturer of artificial intelligence computing chips. CEO Jen-Hsun Huang has been a leading advocate for the application of artificial intelligence across the economy, calling on companies of all types to explore how this emerging technology can help business development.
In the fiscal year ending in January this year, Nvidia invested $70 billion in partners and customers to further promote the development of artificial intelligence.
Dell, which also makes artificial intelligence servers powered by Nvidia chips, expects the business to generate about $50 billion in revenue in the current fiscal year ending in January 2027.
At 11:45 a.m. New York time that day, Dell's shares rose 6.3% to $188.95, after rising as much as 7.6% intraday; HP rose 2.3% to $18.68, after rising as much as 6.3%.
Dell, HP and Nvidia did not immediately respond to requests for comment.