HSI opens 155 points higher on Dell earnings beat and Pfizer deal

The Hang Seng Index rose 155 points, or 0.62%, to 25,161 at the open, lifted by Dell's earnings beat and a $10.5 billion Pfizer-Innovent deal. The Hang Seng Tech Index climbed 51 points, or 1.05%, to 4,939, while the Hang Seng China Enterprises Index added 41 points, or 0.50%, to 8,406.

Dell Technologies reported adjusted earnings of $4.86 per share on revenue of $43.84 billion for the fiscal first quarter, topping consensus estimates of $2.94 and $35.43 billion, respectively. Revenue surged 88% from a year earlier, the fastest pace since the company's return to the public market in 2018. AI server revenue reached $16.1 billion, up 757% year over year, and the company raised its full-year AI revenue forecast to $60 billion from $50 billion. On Wednesday, the Pentagon also announced a five-year contract with Dell worth $9.7 billion for Microsoft 365 services. Dell shares jumped 39% in after-hours trading.

"We're repricing, it feels like, every day, and I'm sure our customers feel that pain," Jeff Clarke, Dell's vice chairman and operating chief, said on a conference call with analysts, citing inflation across memory, processors and raw materials. "Everything that we see suggests that continues."

The results lifted Lenovo Group (聯想集團, 00992.HK) by as much as 15% to HKD22.62 at the open, as investors bet the PC maker will benefit from the same AI-driven hardware cycle. Lenovo, which competes with Dell in the PC and server markets, has been expanding its AI infrastructure business. Dell's traditional server unit also posted significant unit sales growth, with Clarke pointing to semiconductor companies and big tech firms using the gear for inference and agentic workloads.

Innovent Biologics (信達生物製藥, 01801.HK) opened 6.88% higher after announcing a strategic global licensing and collaboration agreement with Pfizer covering 12 early-stage cancer medicines. The deal carries a total value of up to $10.5 billion, including a $650 million upfront payment and up to $9.85 billion in development, regulatory and commercial milestone payments. Under the terms, Innovent will lead development through Phase 1 clinical studies before Pfizer assumes global development responsibilities. The collaboration spans eight Innovent-originated early-stage assets and four Pfizer-proposed discovery programs.

The opening advance was broad-based, with technology and healthcare names leading the gains. The HSTECH's 1.05% rise outpaced the broader HSI, reflecting the AI-driven optimism from Dell's results. The healthcare sector received a boost from the Innovent-Pfizer deal, which ranks among the largest cross-border biotech collaborations involving a Chinese company.

Among other blue chips, AIA Group (友邦保險, 01299.HK) opened 2.07% higher, while CMOC Group (洛陽鉬業, 03993.HK) started at HKD3.64. Major technology names also gained, with Tencent Holdings (騰訊控股, 0700.HK) rising 0.75%, Alibaba Group (阿里巴巴, 9988.HK) climbing 1.15%, and Baidu (百度, 9888.HK) opening 2.71% higher. Meituan (美團, 3690.HK) added 0.41%.

The gains followed a record closing session on Wall Street overnight, as markets awaited the outcome of US-Iran talks. The dual catalysts — Dell's AI-driven earnings beat and the record biotech partnership — point to sustained demand for both AI infrastructure and oncology innovation, two sectors that have drawn significant investor attention this year. Dell's raised AI revenue forecast of $60 billion for fiscal 2027 implies 144% year-over-year growth, a pace that shows how quickly enterprises are deploying AI infrastructure.

This article is for informational purposes only and does not constitute investment advice.