Dell Technologies (DELL -0.04%) may not seem like the most exciting stock in the world. Many investors probably know Dell from a laptop they own or use at work, and it may seem like the furthest thing from an exciting artificial intelligence (AI) stock.However, Dell also has a division within its company that builds data center servers, which have seen a massive boost in demand as the AI arms race continues. With another competitor potentially struggling in this realm, does it open the door for Dell to take ...

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 ...

Key TakeawaysDell is set to report third-quarter earnings after the closing bell Tuesday, with analysts expecting sales and profit gains from the year prior.Most analysts covering Dell tracked by Visible Alpha hold a "buy" or equivalent rating for the stock, but their consensus price target implies little upside.Dell could see more growth next year as AI server sales accelerate, Morgan Stanley analysts said. Dell (DELL) is set to report third-quarter earnings after the market closes Tuesday, with analysts a ...

Core Insights - The demand for data centers is driven by the increasing need for data storage and processing power, particularly due to the requirements of artificial intelligence (AI) programs [1] - Major tech companies like Microsoft, Amazon, Alphabet, and Meta are leading the construction of hyperscale data centers, which can exceed 100,000 square feet [1] Investment Opportunities - Meta plans to invest $800 million in a 715,000-square-foot campus in South Carolina by 2025, while Microsoft is set to begin a $1 billion project in La Porte, Indiana [2] - The number of hyperscale data centers surpassed 1,000 in 2024 and is expected to grow by 120 to 130 annually, indicating significant infrastructure needs [4] Company Analysis: Dell Technologies - Dell Technologies is positioned as a major supplier for the data center industry, potentially benefiting from challenges faced by competitors like Super Micro Computer [4] - Supermicro reported $5.3 billion in sales for Q4 of fiscal 2024, with 64% attributed to large data centers, while Dell's Infrastructure Solutions Group achieved record sales of $11.6 billion, reflecting a 38% year-over-year growth [8][9] Financial Performance - Dell's revenue grew by 9% in Q2 of fiscal 2025 to $25 billion, with diluted earnings per share (EPS) rising 86% to $1.17 [9] - Analysts project Dell's EPS to reach $7.87 this fiscal year, with 20 out of 25 analysts rating the stock as a buy or strong buy, suggesting a target price of $145 per share [10] Shareholder Returns - Dell is committed to returning 80% of adjusted free cash flow to shareholders and plans to increase its dividend, which currently yields 1.3%, by 10% annually [11] - Adjusted free cash flow reached $5.6 billion in fiscal 2024 and $3.7 billion through the first two quarters of fiscal 2025, indicating strong potential for growth alongside earnings [11] Long-term Outlook - The explosive growth in data center infrastructure needs positions Dell as a key beneficiary in the coming years, making it an attractive option for tech investors seeking long-term positions [12]

CNBC's Jim Cramer on Friday previewed next week's important Wall Street action, suggesting it's wise to pay attention to a slew of retail earnings as well as reports from Dell and CrowdStrike. He also said that the coming week is typically a good one for the market and advised investors to ring the register on some of their more volatile stocks that have seen significant gains."If you have huge profits in the month of November, could you do me a favor?" he said. "I would show a little thanks next week and t ...

Dell Technologies (DELL) is scheduled to report its third-quarter fiscal 2025 results on Nov. 26.Dell expects third-quarter revenues in the range of $24-$25 billion, with a midpoint of $24.5 billion, indicating 10% growth. Earnings are expected to be $2 per share (+/- 10 cents).The Zacks Consensus Estimate for revenues is pegged at $24.53 billion, suggesting 10.25% growth from the figure reported in the year-ago quarter.The consensus mark for quarterly earnings is pegged at $2.05 per share, unchanged over t ...

Core Viewpoint - Dell Technologies has experienced a significant stock market rally in 2024, with a 76% increase attributed to rising demand for its AI server solutions [1] Financial Performance and Expectations - Dell is set to release its fiscal 2025 third-quarter results on November 26, 2024, which will be crucial for sustaining its stock rally [2] - The company guided for fiscal Q3 revenue of $24.5 billion, representing a 10% increase from the same quarter last year [3] - Adjusted earnings are expected to be $2 per share, while consensus estimates predict $2.04 per share on revenue of $24.7 billion [4] AI Server Demand and Market Position - In fiscal Q2, Dell sold $3.2 billion worth of AI servers, up from $2.6 billion in Q1, and ended Q2 with an AI server order backlog of $3.8 billion [5] - Dell's potential revenue pipeline for AI servers has significantly increased, suggesting strong future performance if supply chain issues are resolved [5] - Dell is likely to benefit from issues faced by rival Super Micro Computer, which has seen a decline in orders due to negative news [6][7] Competitive Landscape - Supermicro's customers, including Elon Musk's xAI, have reportedly shifted $6 billion worth of AI server orders away from the company, potentially benefiting Dell [7][8] - Dell commands half of the AI server orders from Musk-led companies, positioning it well to capture market share if Supermicro continues to lose orders [8] Long-term Market Outlook - The global AI server market is projected to reach $177 billion in annual revenue by 2032, up from $38 billion last year, indicating a strong growth trajectory for Dell [9] - Dell's management has indicated a solid pipeline of customers for AI servers that exceeds its backlog, suggesting potential for long-term revenue and earnings growth [10] Earnings Forecast - Dell's earnings in fiscal 2024 fell 6% to $7.13 per share, but the company expects to improve to $7.80 per share in fiscal 2025, marking a 9% increase [11] - EPS estimates for the next two fiscal years are projected at $9.43 and $10.76, indicating a positive outlook for earnings growth [12] Valuation - Dell is currently trading at 25 times trailing earnings and 13 times forward earnings, suggesting it may be undervalued as an AI stock [13]

Key TakeawaysShares of Supermicro, Dell, and other Nvidia partners surged Thursday after the chipmaker’s third-quarter results blew past analysts’ expectations.Supermicro and Dell were both among the other companies mentioned in Nvidia's earnings call Wednesday.In a sign of Nvidia's growing influence, mentions of the chipmaker have also climbed in other companies' earnings calls and other corporate events, according to transcript data compiled by AlphaSense. Shares of Super Micro Computer (SMCI), Dell (DELL ...

Wall Street analysts forecast that Dell Technologies (DELL) will report quarterly earnings of $2.05 per share in its upcoming release, pointing to a year-over-year increase of 9%. It is anticipated that revenues will amount to $24.53 billion, exhibiting an increase of 10.3% compared to the year-ago quarter.The current level reflects a downward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reapprai ...

Core Points - Dell has agreed to pay $2.3 million to settle claims of violating the False Claims Act in its dealings with the US Army [1][5] - The allegations involve overcharging on government contracts from May 2020 to April 2024, specifically related to the Army Desktop and Mobile Computing 3 (ADMC-3) contract [2][3] - The settlement amount is a small fraction of Dell's overall revenues, which were reported at $88.4 billion for the last financial year [6] Company Specifics - Dell and its reseller Iron Bow allegedly inflated prices to create a false appearance of competition, influencing the Army's selection process [4][5] - Iron Bow has also agreed to pay over $2 million, bringing the total settlement to $4.3 million [5] - A whistleblower, Brent Lillard, will receive $345,000 from Dell's payment [5] Industry Context - The ADMC-3 contract is valued at approximately $5 billion and is open to eight contractors, including Dell and Iron Bow [7] - The DOJ has emphasized the importance of competition in government contracting to ensure value for taxpayers [8] - In 2023, the DOJ recovered nearly $2.7 billion from 543 settlements related to fraud and false claims against the government, marking a record year for such claims [11]