Shares of Dell Technologies and HP Inc. rose Monday after a report suggesting Nvidia Corp. could be eyeing a major acquisition that could reshape the personal computer industry.
The report, published by the technology site SemiAccurate, claimed that Nvidia had been negotiating for more than a year to acquire “a large company”, triggering speculation in the markets.
No specific targets having been named, investors seemed to interpret this development as potentially involving major PC makers.
Shares of Dell rose as much as 7.6% in early trading before trading up about 5.8%, at $188.20 at the time of writing. Shares of HP also rose, gaining as much as 6.3% before stabilizing up 3.8% at $18.95. Meanwhile, Nvidia stock fell slightly.
Acquisition speculation pushes PC shares higher
SemiAccurate’s report, while not citing a named source or confirmed details, sparked a swift reaction in PC-related headlines.
The site indicated that Nvidia had been negotiating for more than a year to buy “a large company.”
Dell Technologies’ stock jumped on faint hopes that the PC maker was in talks with Nvidia for an acquisition. HP shares also rose.
Market positioning makes Dell and HP key candidates
Dell and HP are among the world’s largest PC sellers, making them logical candidates in any potential deal related to Nvidia’s hardware expansion.
According to Gartner Inc., HP had about 19% of the global PC market in the first quarter, ranking behind Lenovo Group Ltd., which had nearly 27%. Dell followed with around 17% market share.
Given their scale and established enterprise presence, both companies could play a strategic role if Nvidia seeks to pursue vertical integration or expand further into PC and server hardware.
Nvidia, now the most valuable company in the world, dominates the market for chips used for artificial intelligence workloads.
Chief Executive Jensen Huang has been an advocate for wider adoption of AI across industries, encouraging companies to explore new applications of the technology.
The company has also invested heavily to support this expansion, allocating $70 billion to its partners and customers in the fiscal year ended January.
AI tailwinds and analyst optimism support Dell
Beyond takeover rumors, Dell’s gains were also supported by positive analyst sentiment and its growing exposure to AI infrastructure.
The company makes AI servers powered by Nvidia chips and has projected around $50 billion in revenue from that segment for its current fiscal year, which runs through January 2027.
Adding to this, Bank of America raised its price target on Dell to $205, citing its strong positioning in enterprise AI and expectations of a rebound in demand for commercial PCs.
Trust was also boosted by Dell’s strategic AI partnership with the Sharjah Digital Department, aimed at modernizing government digital infrastructure.
