Subscribers to Chart of the Week received this commentary on Sunday, January 12.   Dell Technologies (DELL)     Similar to how investors underestimated foundry chip stocks in 2023, data center companies are being undervalued heading into 2025, with artificial intelligence (AI) now front and center. Dell Technologies is well-positioned for growth, driven by several key factors. On the technical side, the stock remains up over 50% year-to-date in 2024, with support around the $115 level following its post-ea ...

Company Overview - Dell Technologies (NYSE: DELL) is positioned as a leading player in the AI server market, benefiting from increased investments in AI-driven infrastructures by enterprise and cloud provider customers [1] Industry Trends - The AI server market is experiencing significant growth, driven by rising demand for AI-driven infrastructures from enterprise and cloud providers [1] Investment Perspective - Dell Technologies is considered a strong candidate for riding the AI server wave, supported by its role in underpinning AI server infrastructure [1] - The company is viewed as a high-quality, reasonably priced business with strong moats and significant growth potential, aligning with a GARP/Value investment style [1] Analyst Background - The analysis is provided by Yiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform, with extensive experience in auditing and consulting at Deloitte and KPMG [1] - The investment approach focuses on long-term wealth accumulation through compounding, with an emphasis on downside protection and contrarian views during market uncertainties [1]

DigitalOcean - DigitalOcean is a cloud infrastructure company targeting small businesses and independent developers with affordable server solutions, carving out a niche in a market dominated by enterprise giants like Amazon and Microsoft [1] - From 2018 to 2023, DigitalOcean's revenue grew at a CAGR of 28%, and it turned profitable in 2023 [2] - From 2023 to 2026, analysts expect its revenue and EPS to grow at a CAGR of 13% and 85%, respectively [2] - The company expanded its AI market exposure by acquiring Paperspace in 2023, adding GPU-powered servers to its platform [3] - From fiscal 2024 to fiscal 2027, revenue and EPS are expected to grow at a CAGR of 12% and 21%, driven by the generative AI market [4] - DigitalOcean's stock is valued at 40 times forward earnings and 29 times forward earnings in different periods, with a forward dividend yield of 0.8% [3][4] - The company has bought back more than a third of its shares over the past decade [4] Oracle - Oracle is one of the world's largest database software companies, transitioning from on-site applications to cloud-based infrastructure and software services [9] - From fiscal 2019 to fiscal 2024, Oracle's revenue and EPS grew at a CAGR of 6% and 5%, respectively [9] - The company acquired NetSuite and Cerner to accelerate its cloud evolution [9] Dell - Dell returned to the public market in 2018 as a more streamlined company after being taken private in 2013 [5] - From fiscal 2019 to fiscal 2024, Dell's annual revenue declined due to the spin-off of VMware in 2021 and a sluggish PC market [5] - From fiscal 2024 to fiscal 2027, analysts expect Dell's revenue and EPS to grow at a CAGR of 8% and 24%, respectively, driven by AI server business expansion and PC market stabilization [10] - Dell's stock is valued at 12 times forward earnings, with a forward yield of 1.3% [10] Market Context - DigitalOcean, Oracle, and Dell are highlighted as undervalued tech stocks with strong growth potential [8] - The S&P 500 has delivered average annual total returns of over 10% since 1957, suggesting long-term market growth potential [7]

Dell Technologies (DELL)Similar to how investors underestimated foundry chip stocks in 2023, data center companies are being undervalued heading into 2025, with artificial intelligence (AI) now front and center. Dell Technologies is well-positioned for growth, driven by several key factors. On the technical side, the stock remains up over 50% year-to-date in 2024, with support around the $115 level following its post-earnings spring movement. Any dips toward the round $100 level should be considered as an o ...

On the heels of an incredible rally, stocks are off to a strong start in 2025. After surging 23.3% across 2024's trading, the S&P 500 index rose roughly 1.2% early in this year's trading before flattening as of Tuesday's market close. Market darlings like Nvidia hit new valuation highs this week, and investors are looking to potentially explosive categories including quantum computing and robotics as "next big thing" contenders that could power future rallies.While buying shares in top technology players wi ...

With its servers business making headlines in the AI world, Dell Technologies Inc.'s (NYSE: DELL ) stock has surged over 50% in the past year. In the below analysis, I determine that the technicals indicate that the stock may see furtherI'm a technically-oriented Canadian investor with a focus on U.S. markets, particularly in tech and financials. I graduated with a Bachelor of Commerce Degree with Distinction, with a major in Finance. I'm also a proud lifetime member of the Beta Gamma Sigma International Bu ...

Core Insights - The exponential growth of artificial intelligence (AI) is projected to significantly boost global GDP, with strong revenue growth reported by leading AI hardware and software companies [1] Company Analysis Nvidia - Nvidia is a leading supplier of graphics processing units (GPUs) and is positioned to benefit from a $1 trillion opportunity as data centers transition to AI-optimized hardware [3][5] - The company's annual revenue has quadrupled over the last three years, with expectations of reaching $129 billion for fiscal 2025, reflecting a year-over-year increase of 112% [4] - Over 80% of Nvidia's revenue is driven by demand for data center chips and networking products, with the company estimated to control over 70% of the AI chip market [4][5] - Nvidia generated $56 billion in free cash flow on $113 billion of revenue over the last four quarters, allowing it to invest heavily in GPU technology [6] Dell Technologies - Dell Technologies is experiencing a resurgence as a growth stock, with strong demand for AI-optimized servers driving growth in its infrastructure solutions group [7] - The infrastructure business reported a 34% revenue growth in Q3 compared to the previous year, with a strong AI server backlog of $4.5 billion [8] - Dell's management identifies additional service offerings as "profit pools," which are expected to enhance margins over time [8] - Analysts project earnings growth of 10% for 2025, accelerating to 20% in 2026, with potential upside from a recovery in the PC market [9][10]

Core Insights - The AI PC market is rapidly evolving, with a focus on on-device AI to enhance productivity and creativity for various users [1] - Dell has introduced three product categories to meet core customer needs: Dell (for play, school, and work), Dell Pro (for professional-grade productivity), and Dell Pro Max (for maximum performance) [1] Product Categories - Dell has established a consistent tiering approach within the new product categories, allowing customers to easily identify devices that meet their specific needs [2] - The Dell Pro lineup features Intel® Core™ Ultra and AMD Ryzen processor options, emphasizing exceptional battery life and powerful on-device AI capabilities [4] - Dell Pro laptops are designed to be lightweight and durable, with the ability to withstand three times as many hinge cycles and drops compared to competitors [3][4] Performance and Features - The Dell Pro 14 Premium offers up to 21.2 hours of battery life, 51% more runtime than its predecessor, and significant performance improvements across various tasks [4] - The Dell Pro Max portfolio is designed for demanding applications, featuring high-performance processors and professional graphics for intensive workloads [5] - New modular USB-C ports in Dell Pro devices enhance durability and serviceability, reducing e-waste [9] Sustainability Initiatives - The new portfolio emphasizes sustainable design, utilizing recycled and low-emission materials in products and packaging [6][9] - Dell's focus on reducing cobalt usage in batteries by up to 80% reflects its commitment to sustainability and reducing dependence on critical minerals [9] Manageability and Security - Dell's manageability software enhancements allow IT administrators to coordinate across the PC ecosystem, improving security and cyber-resilience [7] - The introduction of a holistic peripheral management solution streamlines the management of displays and client peripherals [7]

ROUND ROCK, Texas, Jan. 6, 2025 /PRNewswire/ -- Dell is once again raising the bar with innovative new PC monitors that debut world's first technology. Our latest flagship trio showcases industry-leading advancements in color accuracy, eye comfort and audio experience, offering an ideal canvas for creative professionals, engineers, tech enthusiasts or anyone in search of cutting-edge monitors. Dell UltraSharp 32 4K Thunderbolt Hub Monitor Dell 32 Plus 4K QD-OLED Monitor With world's first enhanced IPS ...

Dell AI PC portfolio boosts creativity and productivity for end users; simplifies AI for developers and IT administrators Unified branding across Dell's PC portfolio makes it easier and faster to find the right PCs, accessories and services Latest generation silicon from Intel®, AMD and Qualcomm Technologies, Inc. offers customers enhanced performance and expanded AI capabilities The Dell Pro AI Studio, the newest addition to the Dell AI Factory, provides the industry's most comprehensive AI PC toolkit,1 a ...