Month: March 2024

Dell shares jump on server sales fueled by excitement for AI work

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dell Technologies Inc. gained about 14% in late trading after reporting better-than-expected sales and profit fueled by demand for information technology equipment to handle artificial intelligence work.

Known for its PC business, Dell has attracted investor attention over the last year due to a spike in interest for its high-powered servers needed to run AI workloads. The company’s infrastructure unit, which includes servers, reported revenue of $9.33 billion in the fiscal fourth quarter, topping estimates. A sequential increase in sales from the previous period was “driven primarily by AI-optimized servers,” Dell said Thursday, though the unit’s total revenue declined 6% from the same quarter a year earlier.

“We’ve just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements,” Chief Operating Officer Jeff Clarke said in a statement, referring to generative AI. The backlog for AI servers was $2.9 billion at the end of the period on February 2, he said.

Dell shipped $800 million in AI-optimized servers in the quarter, Clarke said in remarks prepared for a conference call on the results. Like many in the industry, however, the business is being held back by the availability of advanced computer chips, Clarke added. Demand continues to outpace supply, “though we are seeing H100 lead times improving,” referring to market-leading Nvidia Corp.’s chip.

The shares hit a high of $113.34 in extended trading after closing at $94.66 in New York. The stock has more than doubled over the last 12 months amid investor excitement about the role of servers in an AI-driven purchasing cycle.

Dell gave a revenue forecast of $91 billion to $95 billion in the fiscal year ending in February 2025, compared with an average estimate of $92.1 billion. Profit, excluding some items, will be $7.50 a share, plus or minus 25 cents, Chief Financial Officer Yvonne McGill said on a conference call after the results. Analysts, on average, estimated $7.11.

Computer unit revenue should increase in the “low single digits” while the infrastructure unit will grow “in the mid-teens fueled by AI,” McGill said.

Dell also increased its annual dividend 20% to $1.78 per share. A quarterly dividend of 44.5 cents a share will be payable May 3 to investors as of April 23. Other tech companies including Salesforce Inc. and Meta Platforms Inc. recently announced new dividends.

In the quarter, revenue declined 11% to $22.3 billion, the Round Rock, Texas-based company said in a statement. That’s slightly ahead of the $22.2 billion expected by analysts. Profit, excluding some items, was $2.20 per share. Analysts, on average, projected $1.72, according to data compiled by Bloomberg.

Sales of personal computers declined 12% to $11.7 billion, steeper than the 10% drop anticipated by analysts, reflecting an ongoing slump in the PC market. Commercial sales fell 11% to $9.56 billion while consumer revenue plunged 19% to $2.15 billion.

“In the near-term, the PC market is still soft and we expect recovery to push into the second half as enterprise and large customers remain cautious with their spend,” Clarke said. A cycle of new PC purchases should begin as the current stock ages and computers tied to Microsoft Corp.’s Windows 11 software and AI-oriented hardware are released, he added.

On Wednesday, PC competitor HP Inc. also missed analyst estimates for computer sales, saying that demand would take longer to recover. While the market has gone through a downturn “unparalleled in the industry’s recorded history,” the market is poised to turn around later in 2024, research firm IDC wrote last month in a report.

In January, Dell announced it terminated its reseller agreement with VMware, which is now owned by Broadcom Inc. Dell no longer re-sells most VMware products, except for embedded tools like VxRail and Carbon Black, a spokesperson said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

AMD’s market value tops $300 billion on wave of AI-fueled rally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Advanced Micro Devices Inc. shares jumped Thursday, with the chipmaker extending a surge to hit its latest in a series of fresh records this year.

The stock rose 9.1%, a climb that resulted in the company’s market capitalization closing above $300 billion for the first time. Shares have more than doubled off an October low.

The company is seen as one of the primary beneficiaries of artificial intelligence, and last month, optimism about new AI processors helped AMD shares recover from a weak forecast.

Earlier Thursday, Citigroup Inc. wrote that it remains “wildly bullish on semis,” especially as “the AI market continues to grow” with all kinds of businesses and organizations all buying AI chips. The firm singled out AMD as one of the stocks it favors, along with Nvidia Corp. and Broadcom Inc.

Still, the stock doesn’t exactly look like a bargain after recent gains. Shares trade at nearly 50 times estimated earnings, making it far more expensive than industry leader Nvidia, whose multiple is a relatively milder 32 times.

While analysts are broadly positive — more than three-fourths of the firms tracked by Bloomberg recommend buying AMD — shares are essentially even with the average price target, suggesting additional upside from here could be limited.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Latest inflation data shows Fed has more work to do, says Cleveland Fed President

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Federal Reserve Bank of Cleveland President Loretta Mester said inflation data out on Thursday showed that policymakers have more work to do to cool price pressures, but said it didn’t change her expectation that the Fed will cut interest rates three times this year.

In an interview with Yahoo Finance, Mester said it’s unlikely that inflation will continue to ease as quickly as it did last year, when improvements in supply chains and a growing workforce helped quell price increases. The Fed’s preferred gauge of underlying inflation rose 0.4% in January, the fastest pace since early 2023, according to government data.

“It doesn’t really change my view that inflation is going to be going down to our 2% goal over time, but it does show you that there’s a little more work for the Fed to do here,” she said.

Mester has previously said she projected three rate cuts in 2024 when officials last updated their quarterly economic forecasts.

“Right now, that feels about right to me if the economy evolves as I anticipate it will,” she said Thursday. Fed officials will update those forecasts at their March 19-20 meeting.

“I do think we’ll see some moderation on the employment side, and those are the conditions that we need to see to be able to assess, OK, the economy is evolving the way we want,” she said. “If inflation expectations — year-ahead inflation expectations — continue to move down then I think we’re in a good spot where we could consider an easing of the restrictive level that we’re in.”

In separate comments earlier Thursday, Mester repeated her support for regulators’ plans to significantly increase capital requirements for the US’s largest banks.

The so-called Basel III proposal released by the Fed, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency last July would require the biggest lenders to increase their capital levels by 19%. The plan has drawn fierce pushback from Wall Street banks.

“In my view, at the larger banks, current minimum capital standards are still below the level where an increase would be counterproductive in terms of thwarting productive risk-taking, beneficial innovation, or economic growth,” she said in remarks prepared for a speech at Columbia University at a conference that was backed by the Bank Policy Institute, which has lobbied against the proposal.

“High leverage has been shown to be a major contributor to the severity of financial crises, while a well-capitalized banking system – reflecting both the amount and the quality of the capital – is less likely to amplify negative macroeconomic shocks and is more resilient,” she added. “I view the Basel III endgame capital proposal as a recalibration aligned with this view.”

After months of lobbying over the issue, the topic is politically divisive. Democratic officials have argued that failures of Silicon Valley Bank and Signature Bank last March, followed by First Republic Bank’s collapse in May, injected urgency into the need for tougher rules. However, Republicans on Capitol Hill and GOP-appointed regulators say the plan goes too far and could hurt lending.

Meanwhile, Michael Barr, the Fed’s vice chair for supervision, says the changes would keep banks from taking risks that could ultimately hurt the economy. On Thursday, Mester signaled support for that view.

Mester is a member of the Federal Open Market Committee and votes on monetary policy decisions this year. But she does not vote on bank regulatory policy, which is set by the Fed’s board of governors in Washington.

Mester says strong supervision, in addition to new capital rules, are needed. “We can make improvements to our supervisory process that I think would address some of the concerns about bank failures,” she said at the event. “We have new regulations coming but supervision should be more dynamic and that would help in addition to new regulation.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Paul Pogba banned from professional football for 4 years for violating anti-doping law

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Italy’s anti-doping court banned Juventus midfielder Paul Pogba for four years after the player tested positive for testosterone during his time with the Serie A outfit. Pogba has insisted that he will be appealing to the Court of Arbitration for Sport (CAS) to challenge the verdict.

The test on Pogba was carried out on August 20 after Juventus played Udinese. He was not a part of that league fixture but was in the bench during the encounter. The result was declared in September, but Pogba did not make a plea bargain with the anti-doping agency of Italy. Hence, the case was tried in the anti-droping court of the country.

“I am sad, shocked and heartbroken that everything I have built in my professional playing career has been taken away from me,” Pogba said in his official statement. “When I am free of legal restrictions the full story will become clear, but I have never knowingly or deliberately taken any supplements that violate anti-doping regulations,” he added.

🚨 Paul Pogba releases an official statement after four year ban due to doping.

“I have today been informed of the Tribunale Nazionale Antidoping’s decision and believe that the verdict is incorrect.

I am sad, shocked and heartbroken that everything I have built in my… pic.twitter.com/qsi7cYKEfc

— Fabrizio Romano (@FabrizioRomano) February 29, 2024

It could take a full year for a CAS verdict — at least that’s the typical timeline unless one party pushes for a fast-track process and the other side agrees to it.

The CAS verdict could take an entire year to come out, until one of the involved parties insist for a fast-track process. Usually, four-year bans are standard under the World Anti-Doping Code. However, it has been cut down in cases where an athlete has proven that their violation was not intentional or even if they give abundant assistance to enable investigators.

Also Read: Mauricio Pochettino confident that Chelsea won’t lose faith in him despite a disappointing season

“As a professional athlete I would never do anything to enhance my performance by using banned substances and have never disrespected or cheated fellow athletes and supporters of any of the teams I have played for, or against,” Pogba said.

Pogba’s contract with Juventus was earlier set to end in June 2026, but it is likely that it could get terminated earlier now. The club has not come in with an immediate comment on the same yet.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ukraine claims it identified 511 war crime suspects, convicted 81

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ukraine has identified 511 people suspected of war crimes since Russia’s Feb. 2022 invasion and has already handed down 81 convictions, its prosecutor general said in Kyiv on Thursday.

Andriy Kostin was speaking at a war crimes conference alongside the chief prosecutors of Poland, Lithuania, Romania and the President of the EU justice arm, Eurojust.

At a press conference after their meeting, the prosecutors announced the signing of a two-year extension to the work of the Joint Investigation Team, an initiative by five European Union countries to probe war crimes in the conflict.

Russia has denied its troops commit war crimes, despite the conflict having killed thousands of Ukrainian civilians.

The JIT is conducting what Eurojust chief Ladislav Harman called the “biggest investigation of war crimes in history.”

Lithuanian Prosecutor General Nida Grunskiene said the JIT had so far spoken to over 5,000 Ukrainians as part of their investigations.

Commenting on the 81 convictions, Kostin acknowledged that most had been conducted without the suspects in custody.

He said Ukraine wanted to get justice as quickly as possible instead of waiting until the end of the war.

“Most of these convictions are in absentia, but it speaks to the fact that we are securing justice right now,” he said.

Kostin added that discussions were taking place with more than 40 countries about the possibility of forming a war crimes tribunal. He indicated that a decision on the format of the panel this year would be “a powerful signal”, but did not say more about when it could start.

He said such a tribunal was likely to last several years once it began.

Kostin and Grunskiene said investigators had managed to establish the identities of three people, all pro-Russian militants from the Donetsk region, suspected of killing Lithuanian film director Mantas Kvedaravicius in the city of Mariupol.

Kvedaravicius’ death was announced by Ukraine’s defence ministry in April 2022. Kostin on Thursday said the film director had died as a result of torture inflicted by the three suspects, including broken bones, knife wounds and a mock execution.

The director was filming a documentary showing the suffering of Mariupol’s residents during a brutal, months-long siege of the city by advancing Russian forces. The documentary, Mariupolis 2, was released several months after his death.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Netflix announces series on 1999 Kandahar hijack, Anubhav Sinha to direct show

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow