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].

Group 1 - Dell Technologies (DELL) closed at $120.96, with a +0.52% change, outperforming the S&P 500's daily gain of 0.24% [1] - Over the past month, DELL shares appreciated by 7.88%, surpassing the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37% [1] Group 2 - Dell Technologies is set to announce its earnings on February 27, 2025, with an expected EPS of $2.52, reflecting a 14.55% increase from the same quarter last year [2] - Revenue is forecasted to be $24.66 billion, indicating a 10.48% rise compared to the year-ago quarter [2] Group 3 - Recent adjustments to analyst estimates for Dell Technologies indicate near-term business trends, with positive revisions suggesting analyst optimism about the company's profitability [3] - The Zacks Rank system, which evaluates estimate changes, has a strong track record, with 1 stocks averaging a +25% annual return since 1988 [4][5] Group 4 - Dell Technologies currently has a Forward P/E ratio of 13.25, which is below the industry average of 14, suggesting it is trading at a discount [6] - The company has a PEG ratio of 0.97, compared to the industry average of 1.67, indicating favorable valuation metrics [7] Group 5 - The Computer - Micro Computers industry, which includes Dell Technologies, has a Zacks Industry Rank of 168, placing it in the bottom 34% of all industries [7][8] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Group 1 - The article promotes a subscription service, Beyond the Wall Investing, which offers access to high-quality equity research reports, potentially saving investors thousands of dollars annually [1] - Dell Technologies is recognized as a well-known firm that produces a wide range of products, including laptops and powerful servers, indicating its significant presence in the technology sector [1] - The investing group provides various features such as a fundamentals-based portfolio, weekly analysis from institutional investors, short-term trade alerts based on technical signals, and community engagement [1] Group 2 - The article does not provide specific financial metrics or performance data related to Dell Technologies or the broader industry [2]

Group 1 - Dell shares increased significantly after reports of a potential $5 billion deal with Elon Musk's startup xAI for artificial intelligence servers [1] - The servers are expected to include Nvidia's GB200 graphics processing units, indicating a strong demand for AI-related hardware [1] - Dell reported $3.6 billion in quarterly AI server order demand, contributing to a total revenue of $24.37 billion for the quarter ended November 1, which is a 10% year-over-year increase [2] Group 2 - xAI recently announced a $6 billion funding round aimed at purchasing GPUs, highlighting the startup's focus on enhancing its AI capabilities [3] - The Grok assistant from xAI is currently available for users on the social network X, owned by Musk, indicating the integration of AI into social media platforms [3]

Dell Technologies ((DELL) is well-positioned for the second-half of this year, according to Morgan Stanley analysts.But the company is expected to guide below analyst and investor expectations for fiscal year 2026 (begun in February) as the near term is predicted to be not just "choppy" but also "tricky," the MS analysts wrote in a note on Thursday.Followers of Zacks already knew this when DELL slipped into the cellar of the Rank earlier this week. More importantly, the Zacks Rank was negative on the stock ...

The AI server boom that once had investors piling into U.S.-branded server stocks is losing steam, and Wall Street isn't thrilled. JPMorgan analyst Samik Chatterjee sees mounting near-term challenges for Dell Technologies Inc DELL and Hewlett Packard Enterprise Co HPE, but he's siding with Dell as the better bet in this AI reset.The AI Server Party Winds DownFor months, AI servers were the golden goose, but concerns are mounting. Chatterjee outlines four key issues: Margin pressure from advanced AI compute ...

When you hear Dell Technologies (DELL 0.43%), you probably think of the laptop you use at work. While that's a fair assessment because that's likely the most common interaction you have with the company's products, Dell is also a massive player in the artificial intelligence (AI) space.Its server division is growing rapidly, and benefits from helping build out all the computing power companies need to develop and deploy AI models. This makes it a potential under-the-radar AI stock, but is it worth investing ...