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Nvidia to Power Dell Gaming PC

The new Dell XPS 600 will retail for $3,099.

Nvidia (NVDA) - Get NVIDIA Corporation Report got a boost Monday as Dell (DELL) - Get Dell Technologies Inc Class C Report, the world's largest computer manufacturer, announced a new high-end gaming PC that will run on Nvidia's graphics chips.

The computer, the Dell XPS 600, will have up to two Nvidia GeForce graphics processors in it and an nForce chipset.

The new computer, which will retail starting at $3,099, is significant for its use of Nvidia's scalable link interface, or SLI, which Dell hasn't used before. SLI allows the use of two graphics processors at once through a high-speed connection technology known as PCI-Express.

Nvidia shares rose 1.8% to $28.77 with the latest rally, once again nearing a ceiling around $29 that investors have tried and failed to break through three times this year. A sustained move above $29 would be a first for Nvidia since mid-2002. Shares are up 22% this year but have flattened out since May.

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For Dell, this announcement starts off a busy week. Shares didn't respond Monday, but investors are likely more focused on the company's upcoming earnings announcement, scheduled for Thursday after the closing bell.

The analysts' average expectation is for earnings of 38 cents a share on sales of $13.7 billion, according to Thomson First Call.

On Monday, Dell's shares rose 0.5% to $39.87; they're down 5% for the year.