Core Viewpoint - Trump's newly announced tariff policy is expected to have a devastating impact on the U.S. technology hardware industry, with companies having limited means to respond [1] Group 1: Impact on Companies - The "reciprocal tariffs" will impose tariffs ranging from 25% to 54% on technology hardware products sold to the U.S., severely affecting companies reliant on overseas production [1] - Major companies such as Apple, Dell, HP, Logitech, Sonos, Circut, and GoPro will face significant challenges due to their dependence on overseas manufacturing [2] - Apple has shifted approximately 15% of its iPhone production to India, while all MacBooks shipped to the U.S. are currently produced in Vietnam [2] - Dell and HP have moved their notebook production for the U.S. market to Vietnam and Thailand, respectively, while Sonos assembles nearly all its speakers for the U.S. in Malaysia and Vietnam [2] Group 2: Tariff Costs - The tariffs are projected to impose an additional cost of approximately $51 billion on technology hardware companies like Apple, Dell, and HP, which is equivalent to about 30% of their EBIT [2] - For Apple, the additional tariff cost could reach $33.3 billion, representing 26% of its EBIT for the fiscal year 2025 [2] - Dell and HP may face tariff costs that are nearly equal to their expected net profits for 2025 [2] Group 3: Response Strategies - Companies have limited options to mitigate the impact of the tariffs, as pre-production or stockpiling is nearly impossible [5] - Diversifying supply chains would take too long, and shifting production to countries with more favorable tariffs is contingent on available infrastructure [5] - Consequently, raising prices is seen as the most realistic option, although this could negatively affect demand, with price increases potentially needing to be between 12% and 19% to offset tariff costs [6]

Until now, I have not been bullish on Dell Technologies (NYSE: DELL ) and that bias has avoided some downside, both on an absolute basis and relative to the S&P500 ( SPY ) ( SPX ) ( IVV ) ( VOO ):Providing alpha-generating investment ideas. I am an independent investor managing my family's portfolio, primarily via a Self Managed Super Fund. You can expect my articles to deliver a clearly structured, evidence-based thesis. But first and foremost, I encourage readers to judge me on my performance.I have a gen ...

Comparing a company's expected annual earnings per share against its stock price is one way to get a look at a stock's valuation profile, and a smaller earnings ratio can potentially indicate that a company is generating stronger profit relative to its valuation. The following chart provides a comparison of the two companies' valuations by forward price-to-earnings ratios. Dell (DELL -1.25%) and Super Micro Computer (SMCI 0.10%) are leading players in the artificial intelligence (AI) server space. Demand fo ...

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **High Yield (HY) Telecom, Cable, and Media** sectors, highlighting the competitive landscape and investment needs that are affecting credit outlooks across these industries [11][67]. Core Insights and Arguments 1. **Cautious Outlook for HY Telecom and Cable**: The overall outlook for HY telecom and cable remains cautious due to intense competition and significant investment needs, which are expected to keep leverage elevated [11][67]. 2. **Media Sector Pressures**: The HY media sector faces secular pressures such as cord-cutting and macroeconomic uncertainties that may adversely impact advertising revenues this year [11][12]. 3. **Credit Spread Risks**: Risks to credit spreads are skewed to the downside, prompting recommendations for more defensive sector trades while identifying attractive relative-value buying opportunities [12][67]. 4. **CHTR HY/IG Differential**: Expectations for the CHTR HY/IG differential to decompress in 2025, with a recommendation to sell certain CHTR bonds while buying others to capitalize on this shift [14][17]. 5. **Debt Issuance and Leverage**: CHTR is projected to issue approximately $1.1 billion in net debt this year, with year-end 2025 pro forma net leverage expected to be around 4.25x [17]. 6. **Potential M&A Activity**: The call suggests that ATUS/CSCHLD might benefit from potential M&A activity, with recommendations to buy lower-dollar guaranteed notes [18][21]. 7. **SATS Opportunities**: SATS is highlighted for refinancing prospects and spectrum valuation, with specific trade recommendations for secured and unsecured notes [22][27]. 8. **LUMN's Mass Markets Segment**: A potential sale of LUMN's Mass Markets segment is seen as a catalyst for the company, with a valuation of approximately $6.6 billion [31][30]. 9. **SBGI vs. GTN Leverage**: SBGI's net leverage is expected to increase more significantly than GTN's in 2025, with specific trade recommendations to sell SBGI and buy GTN bonds [37][41]. 10. **CCO's High Leverage Risks**: CCO's high leverage presents downside risks, with expectations for spreads to widen due to macroeconomic uncertainties and investor fatigue [46][42]. Additional Important Insights - **Consolidation Trends**: The call notes that consolidation and M&A could increase as telecom and cable players seek to remain competitive and profitable [21]. - **Market Pricing Dynamics**: The market is currently pricing in hypothetical scenarios for various companies, indicating a complex landscape for credit assessments [72][70]. - **Strategic Uncertainties in Media**: The media sector is facing strategic uncertainties while waiting for direct-to-consumer (DTC) gains to outpace pressures from traditional linear models [73][74]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and future outlook of the HY Telecom, Cable, and Media sectors.

As AI takes over attention in the tech market, the growing demand for tech center services to support increasing generative AI complexity is flying under the radar. During the current tech share slump, some data center stocks caught in the shuffle are trading below their fair value, presenting opportunities to long-term investors.  For those expecting AI to keep expanding across industries, increasing exposure to data center providers could be a timely move. The following four stocks offer at least 30% pote ...

Group 1: Bristol Myers Squibb - Bristol Myers Squibb is trading at a forward price-to-earnings (P/E) multiple of just 9, significantly lower than the S&P 500 average of 21 [2] - The company faces challenges such as multiple patent cliffs and a high long-term debt of $47.6 billion, compared to cash and marketable securities of $11.2 billion [3] - Despite risks, the company has secured approvals for two potential blockbuster drugs, Cobenfy and Breyanzi, which could generate substantial revenue [4] - The dividend payout ratio is 60%, supporting a 4% yield, making it attractive for dividend-focused investors [5] Group 2: United Parcel Service (UPS) - UPS has seen a 25% decline in stock price over the past year, resulting in a forward P/E multiple of less than 15 [6] - The company reported a profit of $5.8 billion on revenue of $91.1 billion last year, despite struggles in growth [7] - The payout ratio is around 100%, but free cash flow of $6.2 billion exceeds the $5.4 billion paid out in dividends, indicating a safe payout [8] - UPS offers a high yield of 5.7%, making it appealing for income investors [8] Group 3: Dell Technologies - Dell Technologies trades at a low forward P/E multiple of 10, with significant growth opportunities in artificial intelligence (AI) [9] - The server and networking business reported 54% sales growth in the most recent fiscal year [10] - The stock has a 2.2% dividend yield with a modest payout ratio of 28%, allowing for both dividend payments and growth investments [11]

Computer maker Dell's staff numbers have fallen by 25,000 in the last two years. In its latest 10-K filing, published on Tuesday, the company said that it had about 108,000 global employees as of January 31, 2025.In February 2024, that number was 120,000, marking a 10% annual reduction in the workforce. Looking back two years, Dell's head count stood at 133,000, meaning that since February 2023, the Texas-based tech company has reduced its workforce by 19%.The decline in Dell's head count comes after a year ...

Group 1 - Dell reported a significant reduction in employee numbers, decreasing from approximately 120,000 to about 108,000, representing a decline of around 12,000 employees or 10% year-over-year [2] - The company emphasized strict cost management as a key focus for fiscal year 2025, implementing measures such as limiting external hiring and restructuring internal personnel to enhance operational efficiency [2] - According to Gartner, global PC shipments are projected to reach 245.3 million units in 2024, reflecting a 1.3% growth compared to 2023, indicating a continued recovery in the global PC market [2] Group 2 - Among major PC brands, Lenovo, HP, Dell, Apple, Asus, and Acer ranked first to sixth, with Dell being the only company experiencing a decline in market share, showing a negative growth of 2% [2]

Financial Transactions - Secureworks was sold to Sophos Inc. for approximately $0.9 billion in an all-cash transaction, completed on February 3, 2025[29]. - Dell Financial Services funded $8.4 billion of originations in Fiscal 2025 and maintains an $11.2 billion global portfolio of financing receivables[32]. - Dell Technologies' borrowings exposed to interest rate fluctuations were $2.6 billion as of January 31, 2025, relative to total borrowings of $24.6 billion[375]. - A 100 basis point increase in interest rates would have resulted in an increase of approximately $26 million in annual interest expense based on the debt outstanding as of January 31, 2025[375]. - As of February 2, 2024, borrowings exposed to interest rate fluctuations were $3.3 billion relative to total borrowings of $26.0 billion[376]. - A 100 basis point increase in interest rates would have resulted in an increase of approximately $33 million in annual interest expense based on the debt outstanding as of February 2, 2024[376]. Research and Development - Total R&D expenses for Dell amounted to $3.1 billion in Fiscal 2025, an increase from $2.8 billion in both Fiscal 2024 and Fiscal 2023[35]. Patents and Intellectual Property - As of January 31, 2025, Dell held a worldwide portfolio of 24,351 granted patents and 8,424 pending patent applications[56]. Workforce and Employee Development - As of January 31, 2025, Dell Technologies had approximately 108,000 employees, with ongoing efforts to manage costs and align investments with strategic priorities resulting in a reduction in overall headcount[67]. - The company has implemented a comprehensive benefits package to support employees' overall health and well-being, emphasizing mental, physical, emotional, and financial wellness[73]. - Dell Technologies has a structured approach to employee development, offering training, mentorship, and career growth opportunities to build a leadership pipeline[71]. - The company is committed to equal employment opportunity and inclusive policies, aiming to create a diverse workforce that drives innovation and growth[69]. Sustainability and Environmental Commitment - Dell Technologies aims to achieve net zero emissions across scopes 1, 2, and 3 by 2050, actively managing greenhouse gas emissions across operations, supply chain, and product lifecycle[64]. - The company is committed to a circular economy, integrating sustainable practices with suppliers and stakeholders to improve resource efficiency and environmental benefits[64]. - Dell Technologies continuously measures and shares updates on its sustainability progress through annual reports available on its website[65]. Risk Management - Dell Technologies employs established policies and procedures to manage market risks, including foreign currency exchange rate fluctuations and interest rate changes[369]. - The company monitors its foreign currency exchange exposures to ensure the overall effectiveness of its foreign currency hedge positions[370]. - Dell Technologies utilizes foreign currency option contracts and forward contracts to hedge its exposure on forecasted transactions and firm commitments for certain currencies[370]. - The maximum potential one-day loss in fair value at a 95% confidence level for foreign currency hedge instruments was approximately $9 million as of January 31, 2025[371]. Business Strategy and Market Position - Approximately 50% of Dell's net revenue in Fiscal 2025 was generated through other sales channels[53]. - The product backlog for AI-optimized servers remained elevated due to strong demand as the fiscal year ended[44]. - Dell held strategic investments in non-marketable securities valued at $1.5 billion as of January 31, 2025[37]. - Strategic investments in non-marketable securities amounted to $1.5 billion as of January 31, 2025, compared to $1.3 billion as of February 2, 2024[378]. Corporate Governance and Ethics - The company emphasizes the importance of trust, prioritizing security, privacy, and ethics in all business aspects to foster stakeholder confidence[72]. - Dell Technologies conducts audits of its supply chain to ensure adherence to the Responsible Business Alliance Code of Conduct, covering labor, health and safety, environment, ethics, and management systems[76]. - Dell Technologies focuses on digital inclusion, working to close the digital divide by providing access to technology solutions that enhance quality of life[64].

Core Insights - Demand for AI hardware has surged significantly, with global AI spending projected to reach $337 billion in 2023 and expected to exceed $749 billion by 2028, benefiting companies like Oracle and Dell Technologies [2][3] Oracle - Oracle's cloud infrastructure revenue increased by 51% year over year in Q3 of fiscal 2025, significantly outpacing the overall revenue growth of 8% [5] - The company received $48 billion in bookings last quarter, leading to a 63% year-over-year increase in remaining performance obligations (RPO), totaling $130 billion [6][7] - Oracle plans to double its available power capacity within the calendar year and triple it by the end of the next fiscal year, anticipating a 15% revenue growth in the next fiscal year and 20% in fiscal 2027 [8][9] - The company is also set to benefit from the $500 billion Stargate Project, which could enhance its growth trajectory [10] Dell Technologies - Dell's infrastructure business saw a 29% year-over-year revenue increase to $43.6 billion, driven by the rising demand for AI servers [13] - The company sold $10 billion worth of AI servers last year and is targeting a 50% increase in AI server revenue for the current fiscal year, with a backlog of $9 billion [14][15] - Dell expects an 8% revenue increase in the current fiscal year, similar to the previous year, with potential for growth if PC sales improve [16][17] Comparative Analysis - Oracle's growth outlook appears stronger due to its aggressive capacity expansion and substantial revenue pipeline, while Dell's growth may depend on the recovery of its PC business [18][19] - Oracle's valuation is considered reasonable compared to the Nasdaq-100 index, suggesting a favorable investment opportunity [20]