Dell and Samsung Grab First-Class Tickets For AI Hype Train

Dell and Samsung are the latest beneficiaries of the current frenzy of speculation surrounding anything AI related, with both vendors seeing a rise in share prices related to their future AI prospects. From a report: Shares in Dell were said to be up 8 percent in extended trading following the Round Rock company releasing its results for the second quarter of its financial year 2024. These showed that revenue was $22.9 billion, down 13 percent on the same period last year. However, this figure was also up 10 percent on the previous quarter, with the company attributing this growth to rising demand for AI-optimized servers, as well as its PowerStore and PowerFlex storage systems. AI accounted for 20 percent of server revenue in the first half of the year, Dell said.

Similarly, Dell said it is seeing growth in demand for its workstations designed to help organizations run complex AI workloads locally, with its commercial client revenue hitting $10.6 billion. This accounted for the lion's share of the Client Solutions Group second quarter revenue of $12.9 billion, which was down 16 percent year-on-year but up 8 percent on the last quarter. Dell vice chairman and chief operating officer Jeff Clarke said that the company continued to focus on the most profitable segments of the market where he claimed Dell has a leading position.

Too much liquidity

[monkeyxpress]

This is because the fed still hasn't restricted monetary conditions. People think that the 5% increase in rates is a big deal, but it's not if inflation is running at >5% (and core inflation still is). In real terms, which is what ultimately affects your day to day experience, interest rates are still zero and in some cases still negative. All the fed has done is avoid the absurd situation where you could get a loan for 1% that would basically pay itself off due to inflation. If they had allowed that we would probably be in hyper inflation territory by now.

Now that the world has rediscovered that fiscal stimulus is a crazy powerful antidote to deflation, they just need to get on with destroying the huge bubble economy that they created due to 20 years of deregulation driven asset bubbles. This will cause a huge crash, but we know how to get through this now, and then we can start rebuilding an economy where you get ahead by doing something that actually generates a profit - i.e. produces more value than the resources it takes to make.

Re:

[misexistentialist]

Now that the world has rediscovered that fiscal stimulus is a crazy powerful antidote to deflation, they just need to get on with destroying the huge bubble economy that they created due to 20 years of deregulation driven asset bubbles.

If everyone is sure they won't lose money then they start front running the stimulus and the bubble gets bigger. A crash has to be scary, so either go to be so big that the Fed is helpless or there has to be an event like a war with China that makes everyone rethink priorities

AI vs #GSOD, who wins?

[AncalagonTotof]

So far, I guess AI is useless against #GSOD? [youtube.com]