Group 1 - Dell reported fiscal fourth-quarter adjusted earnings of $1.91 billion, or $2.68 per share, an increase from $1.66 billion, or $2.27 per share, a year earlier, exceeding analysts' expectations [2] - Revenue for the quarter was $23.9 billion, up 7% year-over-year, although it slightly missed analyst consensus [2] - The revenue growth was driven by a 37% increase in servers and networking revenue, reaching $6.6 billion, fueled by demand for AI and traditional servers [2] Group 2 - Dell is reportedly nearing a deal to sell over $5 billion worth of servers powered by Nvidia chips to Elon Musk's AI company, xAI, continuing their partnership [3] - The company has a strong outlook for AI, with a backlog of AI server orders amounting to approximately $9 billion [4] - Dell forecasts fiscal 2026 revenue between $101 billion and $105 billion, with adjusted EPS of $9.30, compared to analysts' expectations of $103.81 billion in revenue and adjusted EPS of $9.28 [4] Group 3 - Following the earnings release, Dell's shares rose by 2% in extended trading and have gained about 14% over the past year [5]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading activities [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research and understand the risks involved before investing in any financial instruments [1].

Michael Dell, chairman and chief executive officer of Dell Inc., speaks during the Dell Technologies World conference in Las Vegas, Nevada, US, on Monday, May 20, 2024.Dell reported fourth-quarter sales that fell short of analysts' estimates but earnings topped Wall Street expectations. Here's how the hardware company did versus LSEG consensus estimates:Revenue: $23.9 billion, versus $24.55 billion estimatedEPS: $2.68, adjusted, versus $2.53 estimated.Dell shares are down less than 5% so far in 2025, but th ...

Financial Performance - Full-year revenue reached $95.6 billion, an 8% increase year over year[3] - Full-year operating income was $6.2 billion, up 15% year over year, with non-GAAP operating income at $8.5 billion, up 8%[3] - Record diluted earnings per share (EPS) of $6.38, a 39% increase year over year, and non-GAAP diluted EPS of $8.14, up 10%[3] - Fourth-quarter revenue was $23.9 billion, a 7% increase year over year, with operating income of $2.2 billion, up 40% year over year[3] - Fourth-quarter Servers and Networking revenue was $6.6 billion, up 37%, driven by AI and traditional server demand[7] - Non-GAAP operating income for the three months ended January 31, 2025, was $2,674 million, a 22% increase from $2,195 million year-over-year[41] - Non-GAAP net income for the three months ended January 31, 2025, was $1,911 million, reflecting a 15% increase from $1,660 million in the previous year[41] - Non-GAAP earnings per share for the three months ended January 31, 2025, was $2.68, an 18% increase from $2.27 in the same period last year[41] - Non-GAAP net income for the fiscal year 2025 was $5,865 million, an 8% increase from $5,422 million in fiscal year 2024[45] - Earnings per share attributable to Dell Technologies Inc. for the three months ended January 31, 2025, was $2.15, a 30% increase from $1.66 in the same period last year[47] Revenue Breakdown - Infrastructure Solutions Group revenue grew by 22% in Q4, with AI server backlog at approximately $9 billion[3] - Product revenue increased by 12% to $18,049 million, while services revenue decreased by 5% to $5,882 million for the same three-month period[25] - Infrastructure Solutions Group (ISG) net revenue increased by 22% to $11,352 million compared to $9,332 million in the prior year[31] - Client Solutions Group (CSG) total net revenue grew by 1% to $11,881 million, with commercial revenue up 5% but consumer revenue down 12%[31] Cash Flow and Assets - Cash flows from operating activities showed a change of $585 million for the three months ended January 31, 2025, compared to $1,533 million in the prior year[29] - The company reported a total cash, cash equivalents, and restricted cash balance of $3,819 million at the end of the period, down from $7,507 million at the beginning[29] - Total current assets increased to $36,229 million as of January 31, 2025, compared to $35,984 million as of February 2, 2024[27] - Cash and cash equivalents decreased significantly to $3,633 million from $7,366 million[27] - Adjusted free cash flow for the fiscal year 2025 was $3,097 million, a 45% decrease from $5,607 million in fiscal year 2024[53] Liabilities and Equity - Total liabilities decreased to $81,133 million from $84,258 million year-over-year[27] - The company’s long-term debt increased slightly to $19,363 million from $19,012 million[27] - The reportable segment operating income for the same period was $2,051 million, compared to $2,018 million in the previous year, showing a slight increase of 2%[67] - The company reported an accumulated deficit of $(4,630) million, which was revised to $(4,453) million after adjustments, a positive change of $177 million[76] - Total stockholders' equity deficit improved from $(2,309) million to $(2,132) million, reflecting a positive adjustment of $177 million[76] Future Guidance - FY26 guidance includes full-year revenue growth of 8%, diluted EPS growth of 23%, and non-GAAP diluted EPS growth of 14%[3] - Full-year FY26 revenue is expected between $101.0 billion and $105.0 billion, with GAAP diluted EPS expected to be $7.85, up 23% year over year[8] - The company projects diluted earnings per share of $1.29 for the three months ending May 2, 2025, and $7.85 for the fiscal year ending January 30, 2026[58] - Non-GAAP earnings per share attributable to Dell Technologies Inc. is expected to be $1.65 for the three months ending May 2, 2025, and $9.30 for the fiscal year ending January 30, 2026[58] Dividend and Share Repurchase - The company announced an 18% increase in annual cash dividend to $2.10 per share and a $10 billion increase in share repurchase authorization[5] Adjustments and Misstatements - The company identified a misstatement impacting the Client Solutions Group segment, overstating cost of goods sold by approximately $200 million in fiscal 2024 and $148 million in fiscal 2025[11]

Core Viewpoint - Dell Technologies Inc is set to report its fourth-quarter earnings, with Wall Street expecting an EPS of $2.53 and revenues of $24.56 billion, indicating a strong market interest in the upcoming results [1] Stock Performance - Dell stock has increased by 26.31% over the past year but has seen a slight decline of 0.76% year-to-date [1] - The stock is currently trading at $112.85, with analysts projecting a price target of $134.05, suggesting a potential upside of 24% [6] Technical Analysis - The stock is exhibiting a strongly bullish trend, trading above its five-day, 20-day, and 50-day exponential moving averages, indicating sustained buying pressure [2] - The Moving Average Convergence Divergence (MACD) indicator at 0.94 supports a bullish outlook, while the 20-day and 50-day simple moving averages (SMA) at $111.04 and $112.98 indicate continued strength in the short- to mid-term [3] - However, the eight-day SMA at $116.52 presents a bearish signal, suggesting near-term resistance, and the 200-day SMA at $122.99 indicates a longer-term downtrend, which could hinder sustained gains [4] Investor Sentiment - The Relative Strength Index (RSI) of 49.90 places Dell stock in neutral territory, indicating it is neither overbought nor oversold, with potential buying opportunities if the stock dips toward the 50-day SMA [5]

Core Viewpoint - Dell's stock has underperformed since November due to market concerns about a slowdown in AI data center construction, but the company is positioned to benefit from the shift towards inference computing, suggesting potential upside for its stock price [1][10]. Group 1: Market Concerns and Opportunities - The market is worried about the efficiency of AI chips leading to a slowdown in GPU demand, which could impact sales growth expectations for companies like Dell [1]. - Despite concerns, key factors are shifting favorably for Dell, particularly in the inference computing space, which is expected to perform well [1][10]. - The transition from pre-training to inference computing is anticipated to happen faster than expected, with more cost-effective data centers supporting AI inference [3][10]. Group 2: Strategic Partnerships - Dell has partnered with AMD to integrate Ryzen AI PRO processors into new Dell Pro devices, marking a significant milestone in their strategic collaboration [4]. - AMD's CEO highlighted that the total cost of ownership (TCO) for AMD's inference computing solutions is significantly lower than Nvidia's, which could benefit Dell in both PC and server markets [4][9]. Group 3: Financial Performance Expectations - Dell is expected to report solid earnings and revenue growth in its upcoming Q4 financial results, with analysts predicting a 14.46% year-over-year increase in earnings per share (EPS) to $2.52 [5]. - Revenue forecasts for Q4 are set at $24.57 billion, indicating a 10.09% year-over-year growth, with a consensus among analysts on the earnings estimates [5][6]. Group 4: Valuation Metrics - Dell's non-GAAP expected price-to-earnings (P/E) ratio is 14.50, significantly lower than the industry median of 23.87, indicating a 39.26% discount [9]. - The expected price-to-sales (P/S) ratio for Dell is 0.83, which is 73.43% lower than the industry median of 3.11, suggesting strong valuation metrics [9]. Group 5: Future Growth Catalysts - Dell is projected to benefit from a $5 billion deal with Elon Musk's xAI and an anticipated $4 billion increase in AI server shipments from FY 2024 to FY 2025 [8][9]. - The shift towards inference computing is expected to catalyze Dell's next growth phase, supported by recent strategic agreements [11].

Group 1 - The account is managed by Noah's Arc Capital Management, focusing on 20th century stocks undergoing transformation in the 21st century [1] - The research aims to identify innovations in business models that could lead to significant stock changes [1] Group 2 - The main author, Noah Cox, is the managing partner of Noah's Arc Capital Management, and his views may not reflect the firm's overall stance [3] - The article is intended solely for informational purposes and does not constitute investment advice [3]

Core Insights - Dell Technologies (DELL) is anticipated to report fiscal 2025 fourth-quarter results, with analysts expecting revenue growth primarily from servers and networking solutions [1][4] - The consensus among analysts is largely positive, with six out of seven maintaining "buy" or equivalent ratings, and a price target suggesting approximately 30% upside from recent trading levels [1][4] Financial Expectations - Analysts project adjusted earnings per share (EPS) of $2.51 and net sales of $24.56 billion, representing increases from $2.20 EPS and $22.32 billion in sales a year prior [2] - The Infrastructure Solutions Group is expected to achieve record revenue of $11.74 billion, reflecting over 25% year-over-year growth [2] Market Sentiment and Challenges - Bank of America has reduced its price target for Dell to $150, citing potential short-term challenges in AI server revenue due to supply-chain issues with Nvidia's Blackwell chips [3] - Morgan Stanley has also lowered its price target to $128, describing the company's short-term outlook as "choppy," despite robust demand for AI servers [3] - Dell is reportedly close to a deal to sell over $5 billion worth of servers powered by Nvidia GB200 chips to Elon Musk's xAI [3] Stock Performance - Dell's shares experienced a slight decline of about 3% recently but have increased over 23% in the past year [4]

Core Insights - A small Chinese AI start-up has developed a generative AI chatbot to compete with OpenAI's ChatGPT, claiming to have trained its model with only $6 million and a few thousand Nvidia GPUs, contrasting sharply with U.S. tech companies that spend billions on similar projects [1] - The announcement from the start-up has raised concerns about the future spending of tech giants on GPUs and servers, leading to a sell-off of Nvidia's stock [4] Group 1: Nvidia's Market Position - Despite initial concerns regarding Nvidia's future, major companies like Amazon and Alphabet have reaffirmed their substantial capital expenditure budgets, which will largely be allocated to data center infrastructure including Nvidia GPUs [2] - Nvidia's fiscal 2025 is already showing strong performance, with expectations for continued success [3] - The forward price-to-earnings ratio for Nvidia has decreased to 31, down from a recent peak of 50, indicating a potential buying opportunity for investors [4][5] Group 2: Dell's Business Performance - Dell's Infrastructure Services Group (ISG) reported a 34% increase in revenue year-over-year, reaching $11.4 billion, with operating income rising 41% to $1.5 billion, indicating strong demand for data center products [7] - A potential $5 billion deal with xAI could further boost Dell's ISG revenue [2][6] - Dell's Client Services Group (CSG) experienced a slight decline in sales by 1% to $12.1 billion, but still managed to achieve an operating profit of $700 million [7] Group 3: Investment Opportunities - Dell offers a rising dividend currently yielding 1.5%, with a recent 20% increase and a commitment to a 10% annual increase through fiscal 2028 [8] - Following the DeepSeek news, Dell's stock has also dropped, trading over 20% below the average analyst target of $150 per share, suggesting a potential buying opportunity for investors [10]

Core Viewpoint - Dell Technologies is set to report its fourth-quarter fiscal 2025 results, with expectations of revenue growth and earnings performance amid challenges in the PC market and strong demand for AI servers [1][2][12]. Financial Performance Expectations - Dell anticipates fourth-quarter revenues between $24 billion and $25 billion, with a midpoint of $24.5 billion, indicating a 10% growth year-over-year [2]. - Earnings per share are expected to be around $2.50, with a slight variation of +/- 10 cents, while the Zacks Consensus Estimate for revenues is $24.66 billion, suggesting a 10.48% increase from the previous year [2][3]. - The consensus estimate for quarterly earnings is $2.53 per share, reflecting a year-over-year growth of 15% [3]. Recent Trends and Market Position - Dell's earnings have consistently exceeded the Zacks Consensus Estimate in the past four quarters, with an average earnings surprise of 10.44% [4]. - The company has faced sluggish PC shipments in the consumer segment, which have negatively impacted top-line growth due to ongoing consumer demand challenges and competitive pressures [5]. - According to Gartner, Dell experienced a 0.1% year-over-year decline in worldwide PC shipments in Q4 2024, with a market share decrease of 20 basis points to 15.5% [6]. Segment Performance - Dell expects a 13% year-over-year revenue growth at the midpoint for its combined Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) [7]. - ISG revenues are projected to increase in the mid-twenties percentage range, while CSG revenues are expected to grow in low single digits year-over-year [7]. - The Zacks Consensus Estimate for ISG revenues is $11.713 billion, indicating a 25.5% year-over-year growth, while CSG is pegged at $12.074 billion, suggesting a 3.1% growth [8]. AI Demand and Future Outlook - Strong demand for AI servers is seen as a key growth driver, with Dell shipping $2.9 billion of AI servers in Q3 2025 and having a backlog of $4.5 billion [12]. - The Dell AI Factory, which integrates solutions optimized for AI workloads, is expected to support long-term growth targets [13]. - Dell anticipates revenue growth between 3% and 4% and earnings growth of more than 8% during the 2024-2028 period, with plans to return over 80% of adjusted free cash flow to shareholders [14]. Stock Performance and Valuation - Year-to-date, Dell's shares have declined by 0.7%, underperforming the broader Zacks Computer & Technology sector, which has returned 2.1% [9]. - The stock is considered overvalued, with a Value Score of C [11]. - Technical indicators show that Dell shares are trading below the 200-day moving average, suggesting a bearish trend [15][16].