2023-12-14 10:16:37 ET
Citi opened a 90-day catalyst watch on Dell Technologies ( DELL ) and HP ( NYSE: HPQ ) as the PC demand cycle looks positive next year.
The bank is also looking ahead to the CES event in Las Vegas, which should drive investor appreciation for demand drivers, especially with artificial intelligence potentially becoming a significant demand driver.
Shares of Dell ( DELL ) and tk tk% on Thursday and HP ( HPQ ) shares are tk tk%.
"CES investor meetings will build positive momentum surrounding AI-driven use cases that spur the necessity for major hardware upgrades (newer/faster CPUs/GPUs) to locally process large datasets securely, cost effectively and with low latency," analysts Asiya Merchant and Michael Cadiz said of the two comapnies.
"While Cloud currently accommodates large models, experts expect PCs can process models locally in the near future, necessitating newer/faster hardware at the user level," the bank said.
Citi is hosting a dinner with Dell's ( DELL ) investor relations team January 8 at the Bellagio Hotel, and HP ( HPQ ) 's president of personal systems, Alex Cho, on January 9 at Aria Hotel.
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Dell, HP on positive catalyst watch at Citi on PC sales, CES in Vegas