The tech sector is showing signs of recovery after a challenging year. But, there is still trouble on the horizon as the industry continues to evolve, with its next chapter being fueled by AI development.
The largest US maker of computer memory semiconductors, Micron Technology Inc (NASDAQ: MU) raised its revenue and earnings guidance for the undergoing quarter, joining its peers in providing hope that the historic chip slump is coming to an end. Yet, shares fell early Tuesday as Micron also projected higher operating expenses, much higher than compared to what analysts expected.
Micron's Revised Its First Fiscal Quarter Guidance
A boost in Micron's top and bottom-line forecasts was widely expected as demand for memory chips has picked up. For the first fiscal quarter of 2024, Micron expects revenue to approach $4.7 billion with non-GAAP gross margins to come near breakeven. Micron guided for adjusted loss per share of about $1, while it previously forecasted $1.07 per share, plus or minus 7 cents. But, Micron also guided for $990 million in adjusted operating expenses and significantly higher-than-expected expenses forecast dimmed its slightly raised earnings and revenue guidance.
Dell Makes A Deal To Solidify Its AI Footing
Dell Technologies Inc (NYSE: DELL) revealed it inked a $150 million deal with an AI startup. Dell will be supplying computing hardware to Imbue as it continues to work on growing its AI footprint. Imbue recently raised $200 million from companies that include Nvidia Corporation (NASDAQ: NVDA).
Back in May, Dell and NVIDIA announced a joint initiative. Through Project Helix, Dell and NVIDIA aim to make it easier for businesses to build and use generative AI models. Project Helix will deliver such solution through the infrastructure and software made by both Dell and NVIDIA. In simple words, NVIDIA and Dell joined forces to support enterprises in deploying generative AI more easily, yet responsibly and accurately. It is one of few AI startups that builds its own AI foundation models from scratch, which bodes well for Dell as this is an ambitious endeavor that requires a large volume of computing power.
Dell is also delivering its professional services to Microsoft Corporation (NASDAQ: MSFT), including Microsoft 365 Copilot. With Dell's technology expertise, companies can adopt Microsoft 365 Copilot quickly and a scale. Therefore, with Dell's support, Microsoft customers are able to adopt a consistent approach to implement and use this new technology.
According to Gartner®, the percentage of enterprises using GenAI applications will rise from this year's 5% to more than 80% by 2026. In simple words, Dell and more than a dozen of its new offerings will help organizations capitalize on features offered by Microsoft 365 Copilot.
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