2 Tech Stocks That Just Got a Massive Boost from AI

Core Insights - Investors are questioning the returns from significant investments in artificial intelligence (AI), contributing to struggles in technology and AI-driven stocks [1] Group 1: Block (NYSE: XYZ) - Block's stock had been down nearly 23% year to date but surged approximately 24% following its fourth-quarter earnings report [2] - The company's restructuring plan includes 4,000 layoffs, reducing staff by about 40%, with AI expected to take over many of these roles [3] - Block's guidance anticipates an 18% increase in gross profit, a 26% boost in operating margin, and a 54% gain in earnings for the current fiscal year [3] - Analysts estimate the restructuring will save $750 million by 2026 and $1 billion annually [4] - Following the earnings report, Block received multiple analyst upgrades, with a median price target of $86.50 per share, indicating a potential 30% upside [4] Group 2: Dell Technologies (NYSE: DELL) - Dell Technologies' stock increased about 21% following its recent earnings report [5] - The company reported record revenue in Q4, up 39% year over year, with earnings rising 57%, including a 45% increase on an adjusted basis [5] - Revenue from the division selling servers and AI infrastructure for data centers grew by 40%, while the PC division saw a 5% increase [6] - Dell's AI-optimized servers experienced a remarkable growth of 342% year over year [6]