Are you missing out on the AI boom? These two undervalued industry giants look primed to take off. Many stocks in the artificial intelligence (AI) space are skyrocketing nowadays. 7 of the 10 highest-performing tech stocks over the last 5 years have direct ties to the AI boom, either by making specialized AI hardware or by providing the equipment used in making those AI chips and systems. The S&P 500 (^GSPC -0.00%) market index nearly doubled over the last five years while the slowest-growing AI stock under ...

10 House P (4) 440 100 11 I 71 1 and the 11 1 i a th B 1 11 I I T the the 1 i t the state 1 1 i = 11 h TI ti t = Title H in 11:4 H d t 1 1 18 i Thinglass I initiated a 'Buy' rating for Dell (NYSE:DELL) in May 2024, highlighting the growth potential of AI-optimized server and networking portfolio. Dell released its Q2 result on August 29th after the bell, reporting a 79.5% year-over-year growth in Servers and Networking business. The 23% growth in AI optimized server order underscores Dell's growth potential ...

Financial Data and Key Metrics Changes - Total revenue increased by 9% to $25 billion, with diluted EPS rising by 9% to $1.89 [5][11] - Cash flow from operations was $1.3 billion, driven by sequential revenue growth and profitability [15] - Gross margin decreased by 230 basis points to 21.8% due to a higher mix of AI-optimized servers and competitive pricing [11][17] Business Line Data and Key Metrics Changes - ISG revenue reached a record $11.6 billion, up 38%, with server and networking revenue growing 80% to $7.7 billion [12][13] - CSG revenue declined by 4% to $12.4 billion, with commercial revenue flat at $10.6 billion and consumer revenue down 22% to $1.9 billion [14] - Dell Financial Services originations increased by 5% to $2.4 billion, with normalized growth exceeding 30% [14] Market Data and Key Metrics Changes - AI server shipments were $3.1 billion in Q2, with a healthy backlog of $3.8 billion [6][12] - The AI hardware and services total addressable market (TAM) is projected to grow from $152 billion to $174 billion, with a CAGR of 22% [8] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance business processes and drive productivity [11][19] - There is optimism regarding the upcoming PC refresh cycle, driven by aging installed bases and advancements in AI-enabled architectures [8][14] - The company aims to extend its leadership in AI and capitalize on emerging opportunities with Tier-2 cloud service providers and enterprise customers [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong top-line growth for the second half of the year, despite a competitive environment [11][16] - The company anticipates ISG revenue growth of approximately 30% driven by AI and traditional server momentum [16] - Management highlighted the importance of optimizing sales coverage to capture AI opportunities across various customer segments [6][9] Other Important Information - A $328 million charge for workforce reduction was taken to position the business for long-term growth [11] - The company has returned $9 billion to shareholders through stock repurchases and dividends since the start of FY '23 [15] Q&A Session Summary Question: ISG margins and drivers of margin expansion - Management noted that ISG operating income rate improved to 11% due to revenue growth and disciplined pricing [22][24] Question: Guidance reconciliation and AI server margins - Management clarified that AI server margins improved due to better pricing discipline and engineering value-add [28][33] Question: AI server demand and enterprise customer engagement - Management indicated that enterprise customers are moving from experimentation to piloting AI technology, creating opportunities for additional services [52][56] Question: Storage dynamics and performance - Management explained that while Dell IP storage demand grew, the overall storage revenue was impacted by declines in hyperconverged infrastructure [42][44] Question: CSG growth outlook - Management expressed optimism about CSG growth in the fourth quarter, driven by an aging installed base and new product introductions [48][50] Question: Traditional server market pipeline - Management highlighted a recovery in traditional server demand, driven by an aging installed base and repatriation of workloads from the cloud [70][71]

For the quarter ended July 2024, Dell Technologies (DELL) reported revenue of $25.03 billion, up 9.1% over the same period last year. EPS came in at $1.89, compared to $1.74 in the year-ago quarter. The reported revenue represents a surprise of +3.03% over the Zacks Consensus Estimate of $24.29 billion. With the consensus EPS estimate being $1.74, the EPS surprise was +8.62%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determin ...

Dell Technologies (DELL) came out with quarterly earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to earnings of $1.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 8.62%. A quarter ago, it was expected that this computer and technology services provider would post earnings of $1.25 per share when it actually produced earnings of $1.27, delivering a surprise of 1.60%. Over ...

Key Takeaways Dell's second-quarter results beat expectations on the top and bottom lines. Server and networking revenue rose 80% to a record $7.7 billion. AI-optimized server demand rose 23% sequentially. Dell Technologies (DELL) shares jumped after the bell Thursday following second-quarter revenue that cleared analysts' expectations on the strength of artificial intelligence (AI) sales. Revenue rose 9% year-over-year to $25 billion, above the analyst consensus from Visible Alpha. Server and networking re ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Dell Technologies reported strong Q2 FY2025 results, with total revenue reaching $25.0 billion (up 9% YoY) and diluted EPS increasing 86% to $1.17, alongside $1.0 billion returned to shareholders Q2 FY2025 Key Financial Metrics (YoY) | Metric | Q2 FY2025 | Q2 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $25.0B | $22.9B | +9% | | **Operating Income** | $1.3B | $1.2B | +15% | | **Non-GAAP Operating Income** | $2.0B | $2.0B | +3% | | **Diluted EPS** | $1.17 | $0.63 | +86% | | **Non-GAAP Diluted EPS** | $1.89 | $1.74 | +9% | - The combined revenue from the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) was **$24.1 billion**, up **12% year-over-year**, indicating strong momentum for the second half of the year[2](index=2&type=chunk) - The company generated **$1.3 billion** in cash flow from operations and returned **$1.0 billion** to shareholders through share repurchases and dividends, ending the quarter with **$6.0 billion** in cash and investments[2](index=2&type=chunk) [Operating Segments Performance](index=2&type=section&id=Operating%20Segments%20Performance) The company's Q2 FY2025 performance was driven by record Infrastructure Solutions Group revenue, up 38% to $11.6 billion, while Client Solutions Group revenue declined 4% to $12.4 billion [Infrastructure Solutions Group (ISG)](index=2&type=section&id=Infrastructure%20Solutions%20Group%20%28ISG%29) ISG achieved record Q2 revenue of $11.6 billion, up 38% YoY, driven by an 80% surge in Servers and Networking to $7.7 billion, despite a 5% decline in Storage revenue ISG Q2 FY2025 Revenue (YoY) | Category | Q2 FY2025 | Q2 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Servers and networking** | $7.7B | $4.3B | +80% | | **Storage** | $4.0B | $4.2B | -5% | | **Total ISG net revenue** | $11.6B | $8.5B | +38% | - AI momentum accelerated in Q2, with AI-optimized server demand reaching **$3.2 billion** (up **23% sequentially**)[3](index=3&type=chunk) - The company reported an AI server backlog of **$3.8 billion** and a pipeline several multiples of the backlog[3](index=3&type=chunk) - ISG operating income for the quarter was **$1.3 billion**, representing **11.0%** of ISG net revenue[3](index=3&type=chunk)[4](index=4&type=chunk) [Client Solutions Group (CSG)](index=2&type=section&id=Client%20Solutions%20Group%20%28CSG%29) CSG revenue decreased 4% YoY to $12.4 billion, primarily due to a 22% drop in Consumer revenue, while Commercial client revenue remained flat CSG Q2 FY2025 Revenue (YoY) | Category | Q2 FY2025 | Q2 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Commercial** | $10.6B | $10.6B | 0% | | **Consumer** | $1.9B | $2.4B | -22% | | **Total CSG net revenue** | $12.4B | $12.9B | -4% | - CSG operating income was **$767 million**, a decrease of **21% YoY**, with an operating margin of **6.2%** of CSG net revenue[3](index=3&type=chunk)[4](index=4&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section provides detailed unaudited GAAP financial statements, including the Condensed Consolidated Statements of Income, Financial Position, and Cash Flows, for a comprehensive financial overview [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 FY2025 saw total net revenue increase 9% to $25.0 billion, with operating income rising 15% to $1.3 billion and net income surging 85% to $841 million, despite a slight gross margin dip Q2 FY2025 Income Statement Highlights (YoY) | Line Item | Q2 FY2025 (in millions) | Q2 FY2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total net revenue** | $25,026 | $22,934 | +9% | | **Gross margin** | $5,311 | $5,387 | -1% | | **Operating income** | $1,342 | $1,165 | +15% | | **Net income** | $841 | $455 | +85% | [Condensed Consolidated Statements of Financial Position](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Position) As of August 2, 2024, total assets marginally increased to $82.7 billion, while total liabilities rose to $85.5 billion, resulting in a stockholders' deficit of $2.8 billion, notably impacted by increased accounts payable Balance Sheet Highlights | Item | August 2, 2024 (in millions) | February 2, 2024 (in millions) | | :--- | :--- | :--- | | **Total current assets** | $37,543 | $35,947 | | **Total assets** | $82,687 | $82,089 | | **Total current liabilities** | $52,033 | $48,494 | | **Total liabilities** | $85,484 | $84,398 | | **Total stockholders' equity (deficit)** | $(2,797) | $(2,309) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q2 FY2025 net cash from operations decreased 58% to $1.3 billion, with a $2.0 billion net outflow from financing activities due to debt repayments and shareholder returns, ending with $4.7 billion in cash Q2 FY2025 Cash Flow Highlights (YoY) | Cash Flow Activity | Q2 FY2025 (in millions) | Q2 FY2024 (in millions) | | :--- | :--- | :--- | | **From Operating Activities** | $1,340 | $3,214 | | **From Investing Activities** | $(557) | $(605) | | **From Financing Activities** | $(2,032) | $(1,827) | - Key uses of cash in financing activities included **$725 million** for common stock repurchases and **$316 million** for dividend payments[18](index=18&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides non-GAAP financial metrics, including non-GAAP operating income of $2.0 billion (up 3% YoY) and diluted EPS of $1.89 (up 9% YoY), with detailed reconciliations to GAAP results Q2 FY2025 Non-GAAP Highlights (YoY) | Metric | Q2 FY2025 | Q2 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Non-GAAP Operating Income** | $2,034M | $1,977M | +3% | | **Non-GAAP Net Income** | $1,371M | $1,283M | +7% | | **Non-GAAP Diluted EPS** | $1.89 | $1.74 | +9% | | **Adjusted Free Cash Flow** | $1,284M | $3,050M | -58% | - The reconciliation from GAAP to non-GAAP operating income for Q2 included adjustments for amortization of intangibles (**$168 million**), stock-based compensation expense (**$191 million**), and other corporate expenses (**$333 million**)[28](index=28&type=chunk) - Adjusted free cash flow was **$1.3 billion**, a **58% decrease** from the prior year, calculated from **$1.3 billion** in operating cash flow, adjusted for capital expenditures and changes in financing receivables and operating leases[32](index=32&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) This section provides investor logistical details, including the earnings conference call information, company description, and important legal disclaimers regarding forward-looking statements and potential risks - The company held a conference call to discuss its performance and financial guidance on August 29 at 3:30 p.m. CDT, with materials available on its investor relations website[5](index=5&type=chunk) - The press release contains forward-looking statements based on current expectations, which are subject to risks and uncertainties that could cause actual results to differ materially[10](index=10&type=chunk)[11](index=11&type=chunk)

Michael Dell at the Allen & Company Sun Valley Conference on July 12, 2024 in Sun Valley, Idaho. Dell reported quarterly results on Thursday that beat Wall Street expectations, powered by an 80% increase in server sales. The stock rose more than 5% in extended trading. Here's how the company did for the fiscal second quarter vs. LSEG consensus estimates: Revenue: $25.06 billion vs. $24.53 billion expected EPS: $1.89 adjusted, vs. $1.71 expected Net income climbed 85% to $841 million, or $1.17 per share, fro ...

News summary Second quarter revenue of $25.0 billion, up 9% year over year Record Infrastructure Solutions Group (ISG) revenue of $11.6 billion, up 38% year over year, with record servers and networking revenue of $7.7 billion, up 80% Client Solutions Group (CSG) revenue of $12.4 billion, down 4% year over year, with commercial client revenue flat at $10.6 billion Diluted earnings per share of $1.17, up 86% year over year, and non-GAAP diluted earnings per share of $1.89, up 9% ROUND ROCK, Texas, Aug. 29, 2 ...

Dell Technologies Inc DELL will be reporting its second-quarter earnings on Wednesday. Wall Street expects $1.71 in EPS and $24.138 billion in revenues as the company reports after market hours. The stock is up 91.43% over the past year, 46.38% year-to-date. Let's look at what the charts indicate for Dell stock and how the stock currently maps against Wall Street estimates. Dell Stock Charts Mixed Ahead Of Q2 Earnings Dell stock is navigating a complex technical landscape with both bullish and bearish signa ...