Core Insights - The article presents a ranking of the world's wealthiest individuals, highlighting their net worth and changes over a specific period. Group 1: Wealth Rankings - Elon Musk leads the list with a net worth of $411.4 billion, experiencing an increase of $1.91 million (0.05%) [1] - Mark Zuckerberg ranks second with a net worth of $239.6 billion, down by $28 million (-1.16%) [1] - Jeff Bezos follows in third place with a net worth of $227.8 billion, decreasing by $40 million (-1.73%) [1] - Larry Ellison is fourth with a net worth of $217.1 billion, down by $12 million (-0.54%) [1] - Warren Buffett ranks fifth with a net worth of $152.3 billion, decreasing by $8.01 million (-0.52%) [1] Group 2: Additional Notable Figures - Larry Page has a net worth of $146.9 billion, down by $9.59 million (-0.65%) [1] - The Bernard Arnault family is valued at $142.3 billion, decreasing by $12 million (-0.81%) [1] - Sergey Brin's net worth stands at $140.4 billion, down by $8.97 million (-0.64%) [1] - Steve Ballmer has a net worth of $135.7 billion, increasing by $3.79 million (0.28%) [1] - Jensen Huang is valued at $124.6 billion, decreasing by $9.73 million (-0.77%) [1]

Core Insights - Warren Buffett's investment philosophy emphasizes buying wonderful companies at fair prices, which is challenging in the AI sector due to high valuations [1] - Despite the challenges, there are valuable investment opportunities in AI stocks, particularly in companies like Micron Technology, Dell Technologies, and Alphabet [2] Company Summaries Micron Technology - Founded in 1978, Micron specializes in computer memory and storage solutions, recently launching the world's first 1-gamma memory chip, enhancing AI hardware capabilities [4] - The company's high-bandwidth memory chips achieved over $1 billion in sales for the first time in its fiscal second quarter, contributing to total sales of $8.1 billion, a nearly 40% increase from $5.8 billion the previous year [5] - Fiscal second-quarter net income doubled year-over-year to $1.6 billion, with diluted earnings per share rising to $1.41 from $0.71, and the company forecasts third-quarter revenue around $8.8 billion, up from $6.8 billion last year [6] Dell Technologies - Dell provides servers, PCs, and hardware for AI systems, experiencing strong demand for AI-optimized servers, with sales increasing 5% year-over-year to $23.4 billion in its fiscal first quarter [7] - Customer orders for AI hardware exceeded $12.1 billion in Q1, surpassing total shipments for the entire fiscal year 2025, with projected revenue for fiscal 2026 expected to reach at least $101 billion, up from $95.6 billion [8] Alphabet - Alphabet integrates proprietary AI into its products, leading to significant revenue growth, with first-quarter revenue reaching $90.2 billion, up from $80.5 billion the previous year [10] - Google Cloud's first-quarter sales grew to $12.3 billion from $9.6 billion, driven by AI advancements [9] - The company plans to invest $75 billion in capital expenditures this year, up from $52.5 billion in 2024, to further enhance its AI capabilities [12] Investment Valuation - Micron, Dell, and Alphabet are considered "wonderful companies" with strong growth and dividend payments, yet their forward price-to-earnings ratios are significantly lower than those of AI giants like Nvidia and Microsoft, indicating they are undervalued [13][15]

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited Q1 FY26/FY25 financials detail position, income, cash flows, and equity, reflecting revenue and operating income growth, Secureworks sale, and prior-year revisions Q1 FY2026 Key Financial Highlights (vs. Q1 FY2025) | Financial Metric | Q1 FY2026 (ended May 2, 2025) | Q1 FY2025 (ended May 3, 2024) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Net Revenue** | $23,378 million | $22,244 million | +5.1% | | **Gross Margin** | $4,937 million | $4,851 million | +1.8% | | **Operating Income** | $1,165 million | $965 million | +20.7% | | **Net Income** | $965 million | $992 million | -2.7% | | **Diluted EPS** | $1.37 | $1.37 | 0.0% | | **Cash Flow from Operations** | $2,796 million | $1,043 million | +168.1% | - Total assets increased to **$86.9 billion** as of May 2, 2025, from **$79.7 billion** as of January 31, 2025. Total liabilities also increased to **$89.9 billion** from **$81.1 billion**, resulting in a wider total stockholders' **deficit of $(3.0) billion**[15](index=15&type=chunk) - The sale of Secureworks was completed on February 3, 2025, for a purchase price of approximately **$0.9 billion**, resulting in a **gain on sale of $0.2 billion**[42](index=42&type=chunk) - Previously issued financial statements for the three months ended May 3, 2024, were revised to correct for unrecorded supplier credits, increasing the previously reported operating income by **$45 million** and net income by **$37 million**[39](index=39&type=chunk)[191](index=191&type=chunk)[193](index=193&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY26 financial performance, key business trends, and outlook, including segment results, liquidity, and capital resources [Introduction & Business Trends](index=49&type=section&id=Introduction%20%26%20Business%20Trends) Dell Technologies saw strong Q1 FY26 results from AI server demand and PC refresh, with full-year revenue growth expected despite anticipated margin pressure and VMware agreement termination - The company expects net revenue growth for the full fiscal year, primarily driven by ISG net revenue from servers and networking, and to a lesser extent, CSG net revenue from the PC refresh cycle[207](index=207&type=chunk) - Strong demand for AI-optimized servers led to a significant **increase** in backlog levels compared to the prior quarter, though this also creates variability in revenue timing[210](index=210&type=chunk) - The Commercial Framework Agreement with VMware was terminated on March 25, 2024; Dell no longer acts as a distributor for standalone VMware products but continues to integrate VMware products with its VxRail solution[212](index=212&type=chunk) - The company anticipates a modest **decline** in input costs during Fiscal 2026, primarily from deflation in component costs[208](index=208&type=chunk) [Consolidated Results of Operations](index=59&type=section&id=Consolidated%20Results%20of%20Operations) Q1 FY26 saw total net revenue and operating income growth, driven by product revenue and cost management, offsetting gross margin pressure from competitive pricing and product mix shifts Q1 FY2026 Consolidated Performance | Metric | Q1 FY2026 | YoY Change | | :--- | :--- | :--- | | **Total Net Revenue** | **$23.4 billion** | **+5%** | | Product Revenue | **$17.6 billion** | **+9%** | | Services Revenue | **$5.8 billion** | **-6%** | | **Operating Income** | **$1.2 billion** | **+21%** | | **Non-GAAP Operating Income** | **$1.7 billion** | **+10%** | | **Operating Margin** | **5.0%** | **+70 bps** | | **Non-GAAP Operating Margin** | **7.1%** | **+30 bps** | - The **6% decrease** in services revenue was primarily due to the **decline** in Corporate and other services net revenue, as Dell no longer acts as a distributor of standalone VMware offerings[245](index=245&type=chunk) - Gross margin percentage **decreased by 70 bps** to **21.1%**, driven by a competitive CSG pricing environment and a product mix shift within ISG[248](index=248&type=chunk) - Operating expenses **decreased 3%** YoY, driven by a **5% reduction** in SG&A from lower headcount and disciplined cost management[251](index=251&type=chunk)[256](index=256&type=chunk) [Business Unit Results](index=65&type=section&id=Business%20Unit%20Results) ISG revenue and operating income grew significantly, driven by AI server demand, while CSG revenue increased but operating income declined due to a competitive pricing environment Q1 FY2026 Segment Performance | Segment | Net Revenue (million) | YoY Change | Operating Income (million) | YoY Change | Operating Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | **ISG** | **$10,317 M** | **+12%** | **$998 M** | **+36%** | **9.7%** | | - Servers & Networking | **$6,321 M** | **+16%** | | | | | - Storage | **$3,996 M** | **+6%** | | | | | **CSG** | **$12,509 M** | **+5%** | **$653 M** | **-16%** | **5.2%** | | - Commercial | **$11,046 M** | **+9%** | | | | | - Consumer | **$1,463 M** | **-19%** | | | | - ISG's operating margin **increased by 170 basis points** to **9.7%**, driven by strong revenue growth and disciplined cost management, which offset a lower gross margin rate from product and geographic mix shifts[269](index=269&type=chunk) - CSG's operating margin **decreased by 130 basis points** to **5.2%**, primarily due to a **decline** in gross margin rate resulting from a competitive pricing environment[272](index=272&type=chunk) [Liquidity and Capital Resources](index=69&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened with increased cash and strong operating cash flow, while total debt principal rose due to new Senior Notes, and capital was returned to shareholders via repurchases and dividends - Cash and cash equivalents **increased by $4.1 billion** during the quarter to **$7.7 billion**, supported by strong operating cash flow of **$2.8 billion** and proceeds from debt issuance and the sale of Secureworks[286](index=286&type=chunk)[296](index=296&type=chunk) - Total debt principal **increased by $4.2 billion** to **$29.0 billion** as of May 2, 2025, primarily due to a **$4.0 billion** issuance of new Senior Notes[290](index=290&type=chunk) - The company returned significant capital to shareholders, including **$2.0 billion** in share repurchases and **$0.4 billion** in dividend payments during the quarter[303](index=303&type=chunk)[304](index=304&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=76&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk exposure has not materially changed from disclosures in the prior fiscal year's Annual Report on Form 10-K - There has been no material change in the company's exposure to market risks since the disclosures in its Annual Report on Form 10-K for the fiscal year ended January 31, 2025[320](index=320&type=chunk) [Item 4. Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective due to a material weakness in internal control over financial reporting related to supplier credits, with remediation ongoing - Management concluded that as of May 2, 2025, the company's disclosure controls and procedures were **not effective** at a reasonable assurance level[323](index=323&type=chunk) - The ineffectiveness is due to a previously disclosed **material weakness** in internal control over financial reporting concerning non-recurring credits from certain suppliers[324](index=324&type=chunk) - As part of its remediation efforts, the company has designed and implemented a new control over non-recurring credits from certain suppliers[325](index=325&type=chunk)[328](index=328&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=78&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information is referenced from Note 10, with no anticipated material adverse effect on financial condition - Information on legal proceedings is incorporated by reference from Note 10 of the financial statements[331](index=331&type=chunk) - The company does not currently anticipate that any of its ongoing legal proceedings will have a material adverse effect on its business, financial condition, results of operations, or cash flows[139](index=139&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the prior fiscal year - The company refers to the risk factors section of its Annual Report on Form 10-K for the fiscal year ended January 31, 2025, indicating no material changes[332](index=332&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=78&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased shares in Q1 FY26, with an additional $10 billion authorized for the stock repurchase program Share Repurchases in Q1 FY2026 | Period | Total Shares Purchased (millions) | Weighted Avg. Price per Share | | :--- | :--- | :--- | | Feb 1 - Feb 28, 2025 | **3.1** | **$108.93** | | Mar 1 - Mar 28, 2025 | **6.3** | **$95.58** | | Mar 29 - May 2, 2025 | **12.7** | **$82.48** | | **Total** | **22.1** | | - On February 27, 2025, the Board of Directors authorized an additional **$10 billion** for the stock repurchase program[334](index=334&type=chunk) - Following the February 27, 2025 authorization, the company had approximately **$11.5 billion** of authorized shares remaining under the program[302](index=302&type=chunk)[334](index=334&type=chunk) [Item 5. Other Information](index=79&type=section&id=Item%205.%20Other%20Information) Company officer Richard Rothberg adopted a Rule 10b5-1 trading plan for the sale of Class C Common Stock shares - Company officer Richard Rothberg adopted a written plan under Rule 10b5-1(c) on March 4, 2025, for the sale of up to **70,165 shares** of Class C Common Stock[336](index=336&type=chunk) [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including supplemental indentures for new senior notes, CEO/CFO certifications, and XBRL data files - Lists filed exhibits, including supplemental indentures for new **4.750%** Senior Notes due 2028, **5.000%** Senior Notes due 2030, **5.300%** Senior Notes due 2032, and **5.500%** Senior Notes due 2035[338](index=338&type=chunk) - Includes required CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[338](index=338&type=chunk)

Dell Technologies (DELL) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The pow ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through daily updates, research reports, and stock screens [1][2]. Zacks Style Scores - The Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the short term [2][3]. - Each stock is rated from A to F, with A indicating the highest potential for outperformance [3]. Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3]. Growth Score - The Growth Style Score assesses a company's financial health and future outlook by analyzing projected and historical earnings, sales, and cash flow [4]. Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings estimate changes, indicating optimal times to invest in high-momentum stocks [5]. VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, serving as a comprehensive indicator for stock selection alongside the Zacks Rank [6]. Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8]. - There are over 800 top-rated stocks available, making the selection process potentially overwhelming for investors [9]. Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, maximizing the probability of success [10]. - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face price declines due to negative earnings forecasts [11]. Company Spotlight: Dell Technologies - Dell Technologies is recognized as a leading provider of IT solutions, including servers, storage, and PCs, catering to both traditional and multi-cloud environments [12]. - Dell holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [12]. - The company has a Value Style Score of A, supported by a forward P/E ratio of 12.12, and has seen positive earnings estimate revisions, with the consensus estimate for fiscal 2026 increasing by $0.46 to $9.43 per share [13].

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Dell Technologies (DELL) .Dell Technologies currently has an aver ...

Core Viewpoint - Wells Fargo has issued an "overweight" rating for Dell Technologies (DELL.US) with a target price of $150, representing a 30% upside from the current stock price, despite recent concerns regarding potential cost-cutting measures by the U.S. federal government [1][2] Group 1: Financial Performance and Projections - Dell's projected total revenue from federal contracts in 2024 is approximately $3.04 billion, with 56% from defense contracts and 44% from civilian contracts, reflecting a 15% year-over-year increase from $1.82 billion in 2022 [1] - For the fiscal year 2025, Dell's commercial revenue is estimated at $43.89 billion, with about 70% derived from the U.S., and approximately 10% of U.S. commercial revenue related to federal government contracts, indicating a risk exposure of around $3 billion in personal computer business related to the federal government [1] Group 2: Market Position and Strategic Outlook - Wells Fargo's positive outlook on Dell is based on the company's execution of deleveraging and its shift towards capital return initiatives, including share buybacks and dividends [2] - The bank also views Dell's ability to leverage its supply chain economies of scale favorably, highlighting the attractiveness of its long-term risk/reward profile due to its diverse investment portfolio and depth in hardware and software [2]

Core Insights - The article emphasizes the importance of identifying investment opportunities where intrinsic value diverges from market price, particularly focusing on undervalued companies [1] - A specialized interest in Real Estate Investment Trusts (REITs) is highlighted, suggesting that the REIT sector offers significant potential for long-term growth [1] - The investment approach is grounded in fundamental analysis, prioritizing financial health, competitive positioning, and management quality [1] Group 1 - The author has a solid foundation in finance, developed through academic studies and hands-on research projects [1] - There is a strong emphasis on thorough research and analysis across various companies to uncover hidden investment gems [1] - The goal is to generate sustainable returns by adhering to a disciplined investment philosophy [1] Group 2 - The article indicates that the REIT sector presents abundant opportunities for investors due to its unique dynamics [1] - The focus on due diligence is crucial, as it involves evaluating key factors that influence a company's performance [1] - The author aims to identify undervalued REITs that are poised for substantial appreciation [1]

Core Insights - Dell Technologies (DELL) and HP (HPQ) are significant players in the personal computer market, with DELL focusing on a broader enterprise portfolio and HP concentrating on consumer PCs and printers [1] - The PC market is projected to grow from $222.64 billion in 2025 to $344.13 billion by 2030, at a CAGR of 9.1% [2] - The global PC market is expected to see a shipment growth of 4.1% in 2025, reaching 274 million units [3] Dell Technologies - DELL's AI prospects are strong, with expansion into enterprise deployments and edge computing [4] - The company has introduced new high-performance notebooks and desktops, enhancing productivity for enterprise customers [5] - DELL is benefiting from a PC-refresh cycle, with first-quarter fiscal 2026 CSG revenues at $12.50 billion, up 5% year over year, and commercial client revenues increasing 9% to $11.04 billion [6] - DELL's partnerships with companies like NVIDIA and Microsoft are enhancing its AI capabilities and enterprise AI adoption [7] HP Inc. - HPQ is focusing on innovative product launches, with a growing interest in generative AI-enabled PCs expected to drive demand [8] - The company forecasts that 40-60% of all PCs will be AI PCs in the next three years, launching several AI PCs this year [9][10] - HPQ's reliance on China for manufacturing poses risks if U.S.-China tariffs escalate, potentially impacting margins [11][12] Stock Performance and Valuation - Year-to-date, DELL shares have lost 2.9% and HPQ shares have lost 22.2%, attributed to a challenging macroeconomic environment [13] - DELL shares are trading at a forward Price/Sales ratio of 0.74X, while HPQ's is at 0.43X, indicating that both stocks are currently undervalued [16] - The Zacks Consensus Estimate for DELL's fiscal 2026 earnings is $9.25 per share, reflecting a 13.64% year-over-year increase, while HPQ's estimate for fiscal 2025 is $3.09 per share, indicating an 8.58% decline [19] Conclusion - Both DELL and HPQ are positioned to benefit from the PC market's growth, but DELL has stronger AI momentum and a diversified portfolio, making it a more attractive investment opportunity [20] - HPQ's dependence on China for manufacturing amid geopolitical tensions is a significant challenge [21]

Wealth Rankings - Elon Musk remains the richest person with a net worth of $421.5 billion, experiencing a slight increase of $1.889 billion or 0.21% [1] - Mark Zuckerberg ranks second with a net worth of $230.3 billion, down by $1.4 billion or 0.6% [1] - Jeff Bezos follows closely with a net worth of $221 billion, decreasing by $855 million or 0.39% [1] - Larry Ellison's net worth is $210 billion, up by $1.28 billion or 1.37% [1] - Warren Buffett has a net worth of $72.55 billion, down by $1.8 billion or 1.12% [1] Additional Notable Figures - The Bernard Arnault family has a net worth of $143.3 billion, down by $1 billion or 0.7% [1] - Larry Page's net worth is $138.2 billion, decreasing by $2.1 billion or 1.52% [1] - Steve Ballmer's net worth is $133.6 billion, with a slight increase of $223 million or 0.17% [1] - Sergey Brin has a net worth of $132.3 billion, down by $2 billion or 1.49% [1] - Amancio Ortega's net worth is $123.8 billion, decreasing by $509 million or 0.41% [1] Emerging Wealth - Jensen Huang's net worth is $123.2 billion, increasing by $3.3 billion or 2.76% [1] - Rob Walton and family have a net worth of $117.9 billion, with an increase of $197 million or 0.17% [3] - Michael Dell's net worth is $116.87 billion, up by $2.9 billion or 2.52% [3] - Jim Walton and family have a net worth of $116.6 billion, increasing by $196 million or 0.17% [3] - Bill Gates has a net worth of $116.5 billion, down by $42 million or 0.04% [3]