Core Insights - Dell Technologies Inc's stock increased by 17% to $142.32 following strong fourth-quarter earnings and revenue that surpassed analyst expectations, with adjusted earnings at $3.89 per share and revenue at $33.38 billion [1] - The company's fiscal guidance for 2027 has more than doubled, driven primarily by AI server revenue amid growing data center demand [1] Stock Performance - Seven brokerages have raised their price targets for Dell, with Raymond James providing the highest increase from $166 to $182 [2] - The stock is breaking out of consolidation and is now 31% higher year-over-year, aiming for its highest close since November 10 [2] Short Interest and Trading Dynamics - Short interest in Dell has risen by nearly 6%, with 27.45 million shares sold short, accounting for 8.9% of the total available float, indicating potential for a short squeeze [3] - At the current trading pace, it would take shorts almost four trading days to cover their positions [3] Options Market Activity - Options traders have shown bearish sentiment, with a 10-day put/call volume ratio of 1.22, ranking higher than 92% of readings from the past year [4] - The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.16 is in the 88th percentile of its annual range, suggesting that unwinding these bearish bets could provide additional support [4] Shift in Options Trading - There has been a notable shift towards call options, with 53,000 calls traded in the first hour, which is 11 times the average intraday amount and nearly double the number of puts [5] - The most popular option is the weekly 2/27 130-strike call [5]

Pre-market indexes are swinging back into positive territory from lower early-morning levels, now erasing the big losses in the first part of this week on all but the small-cap Russell 2000, which is break-even over the past five trading days. This morning, the Dow is +110 points, +0.22%, the S&P 500 is +6, +0.09%, the Nasdaq +7, +0.03% and the Russell 2000 +4, +0.18%.Jobless Claims Come In-Line to Lower: 212K, 1.833MIt’s a “normal” Thursday morning, so we get new Weekly Jobless Claims figures, and once aga ...

Key Takeaways New Jobless Claims Remain Low at 212KLonger-Term Claims Come Down As Well: 1.833MCelsius, Shake Shack and Baidu Beat EarningsThursday, February 26th, 2026Pre-market indexes are swinging back into positive territory from lower early-morning levels, now erasing the big losses in the first part of this week on all but the small-cap Russell 2000, which is break-even over the past five trading days. This morning, the Dow is +110 points, +0.22%, the S&P 500 is +6, +0.09%, the Nasdaq +7, +0.03% and t ...

Financial Data and Key Metrics Changes - HP reported revenue of $14.4 billion for Q1 2026, representing a 7% year-over-year increase, driven by strong performance in Personal Systems and the impact of the Windows 11 refresh cycle [11][24] - Non-GAAP EPS was $0.81, reflecting a 9% growth compared to the prior year and was at the top of the guidance range [11][26] - Gross margin was 19.6%, influenced by a higher mix from Personal Systems and increased commodity costs, partially offset by pricing and cost reduction actions [25][26] Business Line Data and Key Metrics Changes - Personal Systems revenue increased by 11% with a 12% unit growth, benefiting from the Windows 11 refresh and AI PC adoption [26] - In the Print segment, revenue declined by 2% due to lower supplies volumes and market-driven hardware declines, with consumer revenue down 8% and commercial revenue down 3% [28] - AI PCs accounted for over 35% of total PC shipments, up from 30% in the previous quarter [12][58] Market Data and Key Metrics Changes - Revenue growth was observed across all regions, with APJ revenue up 13% in constant currency, EMEA up 5%, and Americas up 1% [24][25] - The overall PC unit Total Addressable Market (TAM) is projected to decline by double digits in calendar year 2026, reflecting industry-wide pricing actions [32][44] Company Strategy and Development Direction - HP is focusing on integrating AI into its products and services, with initiatives like AI at the Edge and the HP Digital Passport to enhance customer experiences [12][13] - The company is committed to a disciplined execution of its fiscal 2026 plan while navigating near-term challenges, emphasizing the importance of customer relationships and operational consistency [10][21] - HP is expanding its partnerships, including with Microsoft, to enhance its product offerings and customer engagement [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising memory costs, which are expected to remain volatile throughout fiscal 2026 and likely into fiscal 2027 [17][21] - The company is implementing various mitigation measures to address these challenges, including securing long-term agreements with suppliers and adjusting product configurations [18][19] - Management remains confident in HP's ability to navigate the current environment while focusing on long-term commitments and value creation [21][22] Other Important Information - HP plans to reschedule its Investor Day due to the ongoing CEO transition [22] - The company is committed to returning approximately 100% of its free cash flow to shareholders over time, with over $600 million returned in Q1 through dividends and share repurchases [31][55] Q&A Session Summary Question: Impact of memory costs in Q1 and guidance for the fiscal year - Management indicated that memory costs increased roughly 100% sequentially and are expected to further increase, impacting overall margins [40][41] Question: PC unit TAM decline specifics - Management expects a double-digit decline in PC unit TAM, aligning with industry forecasts, but sees opportunities for revenue growth through pricing actions and share gains [44][47] Question: Capital returns strategy amidst leverage concerns - Management remains committed to returning free cash flow to shareholders while managing leverage, with plans to repay debt as it comes due [55][56] Question: Nature of long-term agreements with suppliers - Management confirmed strong relationships with suppliers and ongoing negotiations to secure supply and pricing, with new suppliers being qualified to enhance supply chain resilience [71][75]

HP (NYSE:HPQ) Q1 2026 Earnings call February 24, 2026 05:00 PM ET Company ParticipantsAmit Daryanani - Senior Managing DirectorAsiya Merchant - Technology Equity Research (Semiconductors, Technology Hardware, Telecommunications Equipment)Bruce Broussard - Interim CEOErik Woodring - Head of U.S. IT HardwareKaren Parkhill - CFOKaty Huberty - Global Director of Research and Managing DirectorKetan Patel - President of Personal SystemsOvais Chaudhry - Global Treasurer and Head of Investor RelationsSamik Chatterj ...

Core Viewpoint - Dell Technologies Inc. has shown good short-term stock performance but has experienced a decline over the past year, prompting long-term shareholders to consider the company's price-to-earnings (P/E) ratio [1] Group 1: Stock Performance - The current share price of Dell Technologies Inc. is $116.50, reflecting a 0.24% drop in the current market session [1] - Over the past month, the stock has increased by 3.11%, while it has decreased by 2.59% over the past year [1] Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term investors, comparing the current share price to the company's earnings per share (EPS) [2] - A higher P/E ratio suggests that investors expect better future performance, which may indicate overvaluation or optimism about future dividends [2] - Dell Technologies Inc. has a P/E ratio of 15.52, which is lower than the industry average of 35.22 in the Technology Hardware, Storage & Peripherals sector [3] - This lower P/E ratio may lead shareholders to believe that the stock could perform worse than its industry peers or could be undervalued [3]

Core Viewpoint - The U.S. Supreme Court is set to rule on President Trump's tariff regime, with a low probability of a favorable outcome for the tariffs, which could lead to significant refunds and changes in trade policy [1]. Group 1: Legal Actions and Stakeholders - Costco Wholesale Corp. has initiated a lawsuit for a full refund of duties collected under the International Emergency Economic Powers Act (IEEPA) [2]. - Apple Inc. and Nike Inc., while not directly involved in the lawsuit, are significantly affected due to their reliance on Asian manufacturing [2]. Group 2: Financial Impact - U.S. households are projected to experience an average tax increase of $1,000 in 2025, escalating to $1,300 in 2026 due to the tariffs [3]. - The U.S. Customs and Border Protection (CBP) reported over $200 billion collected in tariffs from January 20 to December 15, 2025, with the Tax Foundation estimating a total customs revenue of $264 billion for 2025, resulting in a net gain of approximately $132 billion after accounting for economic drag [3]. Group 3: Future Projections - Tariffs are expected to generate $171.1 billion in 2026, representing 0.54% of GDP, marking the largest federal tax increase since 1993 [4]. Group 4: Next Steps and Market Reactions - The Supreme Court's oral arguments were heard on November 5, 2025, with a longer-than-usual wait for a decision [5]. - Treasury Secretary Scott Bessent indicated that if the administration loses, it could recreate the tariff structure using various legal authorities, and the ruling may result in a complex outcome regarding what is permissible [5]. - Following the announcement of tariffs in April 2025, the S&P 500 experienced significant declines, with the Nasdaq dropping 1,600 points, marking the worst sell-off since the COVID-19 pandemic began [5].

Core Viewpoint - Apple Inc. has a lower P/E ratio of 35.21 compared to the aggregate P/E ratio of 35.76 in the Technology Hardware, Storage & Peripherals industry [1] Group 1 - The P/E ratio of Apple Inc. is 35.21 [1] - The aggregate P/E ratio for the Technology Hardware, Storage & Peripherals industry is 35.76 [1]

Summary of Conference Call Notes Industry Overview - **Industry**: Greater China Technology Hardware - **Focus**: Monthly and quarterly rack shipment forecasts by Original Design Manufacturers (ODMs) for GPU AI servers Key Companies Discussed 1. **Quanta Computer Inc. (2382.TW)** - January revenue: NT$231 billion, a decrease of 15% month-over-month (m/m) but an increase of 62% year-over-year (y/y) [3] - Estimated rack shipments: ~1.4K in January, down from 1.6-1.7K in December, with a target of ~4K racks in 1Q26 [3] 2. **Wistron Corporation (3231.TW)** - January revenue: NT$228 billion, a decrease of 11% m/m but an increase of 152% y/y [4] - Notable decline in notebook (NB) shipments: 1.7 million units, down 35% m/m [4] - L10 computing tray shipments increased to 900-1,000 rack equivalents [4] 3. **Hon Hai Precision (2317.TW)** - January GB200 rack shipments: ~2.4K, down from ~2.8K in December [5] - Expected growth in rack shipments for February and March, targeting ~8.5K for 1Q26, a 9% increase quarter-over-quarter (q/q) [5] Core Insights - **Rack Shipment Forecast**: Anticipated 70-80K racks in CY26, with over 100% y/y growth expected compared to ~29K last year [2] - **Delivery Adjustments**: Actual rack deliveries to end-customers may be lower than reported due to unaccounted assembly and testing times [2] - **Monthly Output Estimates**: - Total GB200/300 rack output in January estimated at ~6.2K, with Quanta at ~1.4K, Wistron at 0.9-1.0K, and Hon Hai at ~2.4K [9] Market Dynamics - **Growth Drivers**: Strong demand for GPU AI servers and increased penetration in the AI server market are key growth factors [2][27] - **Risks**: Potential risks include geopolitical developments, slower-than-expected AI server penetration, and fierce competition in the mega data center segment [27][29] Valuation Methodology - **Hon Hai**: Residual income valuation model with a cost of equity of 8.5%, medium-term growth rate of 13%, and terminal growth rate of 3% [23] - **Quanta**: Residual income model with a cost of equity of 9.0%, medium-term growth rate of 8.5%, and terminal growth rate of 3% [24] - **Wistron**: Residual income valuation with an 8.7% cost of equity, 7.0% medium-term growth rate, and 3% terminal growth rate [25] Additional Insights - **Market Share**: In 2025, Hon Hai held 51% of the GB200/300 NVL72-equivalent rack supply, with Quanta at 21% and Wistron at 20% [18] - **Future Projections**: For 2026, projected market shares are Hon Hai at 45%, Quanta at 20%, and Wistron at 15% [21] This summary encapsulates the key points from the conference call, focusing on the performance and outlook of major players in the Greater China Technology Hardware sector, particularly in the GPU AI server market.

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: Greater China Technology Hardware, specifically in AI Hardware, Specialty Memory, Telecommunications, and Internet sectors [8][9][84] Core Insights and Arguments - **Power Solutions**: - Anticipated increase in computing power due to new GPUs (Blackwell Ultra and Rubin) and server rack design upgrades to Kyber by 2027, which is expected to enhance power solution value [8] - The power value per Vera Rubin rack is projected to rise to **US$76,000** for a 50V power shelf and **US$398,160** for an 800V power rack, compared to **US$57,600** for the GB300 rack [8] - **Delta Electronics (2308.TW)**: - Profit is expected to double within two years, with server power revenue growth accelerating in 2027 [10] - Operating expenses as a percentage of total revenue are projected to decline [10] - **Liquid Cooling Technology**: - The thermal component value for the Vera Rubin server rack is expected to be **18% higher** than that of the GB300 due to a fanless design and increased thermal value per compute tray [16] - The thermal value for a compute tray per rack is estimated at **US$48,060** for Vera Rubin and **US$40,680** for GB300 [14][15] - **Asia Vital Components Co. Ltd. (3017.TW)**: - AI ASIC contributions are likely to surpass AI GPU customers in Q4 2026, with revenue from AI projects expected to increase significantly [17][21] Financial Projections and Valuation - **Delta Electronics Valuation**: - Base case valuation assumes a cost of equity of **8%**, medium-term growth rate of **15%**, and terminal growth rate of **3%** [24] - **Asia Vital Components Valuation**: - Valuation derived from a multi-stage residual income model, with a cost of equity of **10%**, medium-term growth rate of **13%**, and terminal growth rate of **3%** [25] Risks and Opportunities - **Upside Risks**: - Faster-than-expected global economic growth and falling raw material prices could enhance margins [27][28] - Accelerating 5G network deployment and better-than-expected demand for PCs and notebooks could provide additional growth [28] - **Downside Risks**: - Global economic slowdown and ongoing component supply tightness may pressure margins [27][28] - Intensifying industry competition could impact pricing and profitability [28] Additional Important Information - **Analyst Ratings**: The report includes various stock ratings such as Overweight, Equal-weight, Not-Rated, and Underweight, which are not equivalent to buy, hold, or sell recommendations [45][49] - **Disclosure of Conflicts**: Morgan Stanley may have conflicts of interest due to its business relationships with companies covered in the research [2][34] This summary encapsulates the key points discussed in the conference call, focusing on the industry dynamics, company-specific insights, financial projections, and associated risks.