Core Viewpoint - Dell Technologies is experiencing a stock sell-off due to short-term concerns following its fiscal third quarter earnings, presenting a potential opportunity for long-term investors as the company is expected to see growth in both its PC and AI server businesses by 2025 [1] Financial Performance - In the third quarter, Dell reported a revenue increase of 10% to $24.4 billion and adjusted earnings per share (EPS) growth of 14% to $2.15, although revenue fell short of analyst estimates [2] - The company's guidance for the fourth quarter forecasts revenue between $24 billion and $25 billion and adjusted EPS between $2.40 and $2.60, which is below analyst expectations of $25.59 billion and $2.65 [3] Market Conditions - The decline in Dell's stock was influenced by disappointing guidance, particularly in the PC and AI server segments, with the PC market facing a downturn since 2022 and investors growing impatient for a turnaround [4] - Demand for AI servers is currently affected by delays in Nvidia's new Blackwell chip, leading some customers to postpone purchases [5] Long-term Outlook - Despite short-term softness, Dell's AI server backlog increased to $4.5 billion, up 18.4% from the previous quarter, and the company's immediate addressable market pipeline grew by 50% sequentially [7] - The anticipated demand for PCs is expected to rise as the Windows 10 operating system phases out in October 2025, prompting enterprises to upgrade their systems [11] Valuation - Dell's stock is currently trading at a relatively low valuation of 22 times trailing earnings, making it an attractive option for investors despite potential short-term disappointments [12]

Summary of Dell Technologies Inc. Conference Call Company Overview - **Company**: Dell Technologies Inc. (NYSE: DELL) - **Event**: UBS Global Technology and AI Conference - **Date**: December 3, 2024 - **Key Participant**: Arthur Lewis, President of ISG Core Industry Insights - **Industry Focus**: Information Technology, specifically in AI optimized servers, storage, and networking solutions Key Points and Arguments AI Optimized Servers - **Revenue Growth**: Dell reported $3.6 billion in revenue growth from orders, an 11% sequential increase, with shipments totaling $2.9 billion [8] - **Backlog**: The company has a backlog of approximately $4.5 billion, indicating strong demand in the marketplace [8] - **Pipeline Growth**: The next five-quarter pipeline grew 50% sequentially, with a 55% increase in enterprise opportunities, now having 2,000 unique buyers [9] Product Portfolio and Innovation - **Diverse Offerings**: Dell's product portfolio includes servers, networking, and storage solutions, with a focus on energy efficiency and high-density designs [11] - **Liquid Cooling Technology**: The company has been a leader in liquid cooling solutions, which are becoming increasingly important for Tier 2 CSPs and sovereign customers [26] - **AI Factory Solutions**: Dell has developed over 40 AI solutions that cater to various use cases, enhancing its competitive edge [12] Competitive Landscape - **Market Positioning**: Dell emphasizes its strong value proposition over competitors, focusing on innovation and customer customization rather than worrying about competition from ODMs [25] - **Customer Demand**: The company believes that enterprises require more robust solutions compared to hyperscalers, which often prefer ODM solutions [24] Financial Performance - **Operating Income**: The ISG business is growing at 34%, with an operating income of $1.5 billion, growing faster than revenue at 41% [19] - **AI Server Margins**: AI server margins have shown consistent growth, with an uptick from Q1 to Q3, indicating a healthy margin environment [34] Storage Market Insights - **Market Recovery**: Dell anticipates a recovery in the storage market, which typically lags behind server growth, with a forecasted growth of 4% next year [47] - **Product Launches**: The company has launched new products like PowerStore Prime, which has seen double-digit growth, indicating strong demand in the storage segment [48] Networking Business - **Importance of Networking**: The networking segment is crucial for AI workloads, with Dell planning to grow this business significantly in the coming quarters [51] Future Outlook - **Focus on Storage**: Dell aims to regain market share in storage, which is expected to contribute positively to margins in the upcoming fiscal year [55][60] - **Innovation Pace**: The rapid pace of innovation within Dell's portfolio is highlighted as a key strength, with new products being developed continuously [52] Additional Important Insights - **Customer Customization**: Dell's approach to understanding customer needs and providing tailored solutions is a significant part of its strategy [17] - **Vertical Integration**: The company is working towards vertical integration in its cooling solutions, which is expected to enhance competitive advantage [30] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Dell Technologies' focus on AI, innovation, and market positioning within the IT industry.

Core Viewpoint - Dell Technologies (DELL) shares have declined 9.9% following the release of its third-quarter fiscal 2024 results, despite year-over-year increases in earnings and revenues, primarily due to weak guidance stemming from ongoing demand challenges in the consumer PC market and a tough macroeconomic environment [1] Group 1: Financial Performance - DELL shares have returned 84.1% over the trailing 12 months, outperforming the Zacks Computer – Micro Computers industry's growth of 26.2% and the broader Zacks Computer & Technology sector's return of 35.7% [2] - The Zacks Consensus Estimate for DELL's fiscal 2025 earnings is $7.82 per share, reflecting a 9.68% year-over-year growth, while the estimate for fiscal 2026 is $9.61 per share, indicating a growth of 22.82% [10] Group 2: AI and Server Demand - Strong demand for AI servers, driven by digital transformation and interest in generative AI applications, has been a significant growth catalyst for DELL [2] - DELL's AI server pipeline grew 50% sequentially in the fiscal third quarter, with orders reaching $3.6 billion, primarily from Tier-2 cloud service providers [4][5] - The company shipped $2.9 billion worth of AI servers in the fiscal third quarter, with an AI server backlog of $4.5 billion at the end of the quarter [5] Group 3: Market Outlook - DELL anticipates strong top-line growth for the second half of fiscal 2025, driven by robust AI demand and an upcoming PC refresh cycle with new AI-powered PCs expected to boost revenues in fiscal 2026 [6][8] - The AI hardware and services market is projected to reach $174 billion by 2027, with a CAGR of over 22% from 2023 to 2027 [8] Group 4: Valuation and Trading Indicators - DELL shares are considered undervalued, with a Value Score of A and a forward 12-month P/E ratio of 13.69X, significantly lower than the sector's average of 26.53X [12] - DELL shares are trading above both the 50-day and 200-day moving averages, indicating a bullish trend [14]

Core Insights - The article discusses the investment analysis approach of Michael Del Monte, highlighting his macro-value-oriented strategy and cross-industry analysis expertise [1]. Group 1: Analyst Background - Michael Del Monte has over 5 years of experience as a buy-side equity analyst and over a decade in professional services across various industries including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. Group 2: Investment Strategy - The investment analysis approach taken by Michael emphasizes macroeconomic factors and value-oriented metrics, allowing for informed investment recommendations based on comprehensive industry comparisons [1].

Having partnerships with Nvidia (NVDA)  to develop computer servers that harvest artificial intelligence, Dell Technologies (DELL)  and Hewlett Packard Enterprise (HPE)  may be catching investors' attention.AI servers and networking expansion have given both companies a boost in recent years with Dell reporting favorable Q3 results on Tuesday while Wall Street awaits Hewlett Packard’s quarterly report next Thursday, December, 5.However, despite compelling demand for AI servers, demand for traditional PCs re ...

Group 1 - The account is managed by Noah's Arc Capital Management, focusing on providing Wall Street level insights to main street investors [1] - The research primarily targets 20th century stocks undergoing transformation in the 21st century, while also covering companies that facilitate these transformations [1] - The emphasis is on identifying innovations in business models that could lead to significant stock changes [1] Group 2 - The managing partner of Noah's Arc Capital Management is Noah Cox, whose views may not necessarily reflect those of the firm [3] - The article is intended solely for informational purposes and does not constitute investment advice [3]

As we head into the final parts of 2024, we can see that there are several important themes that have defined the financial markets during this period of time. Perhaps most important has been the ramp-up inAnalyst’s Disclosure: I/we have a beneficial long position in the shares of DELL, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business re ...

JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attracti ...

Dell Technologies (NYSE: DELL) faced a sharp selloff on November 27, with its shares dropping 11% following the release of mixed Q3 earnings results.While the company delivered better-than-expected earnings per share, its cautious revenue forecast for Q4 and softer-than-expected sales in certain segments sparked investor concerns. Despite the drop, analysts remain largely optimistic about Dell’s long-term growth, driven by its strong position in artificial intelligence (AI) infrastructure. Dell five-day sto ...

While most of the world is racing for AI, few companies are as pivotal in the quiet AI ecosystem as Dell Technologies (NYSE: DELL ). Much of the attention has fallen on software giants like OpenAI, or chipYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, with BSc and MSc degre ...