SAN JOSE, Calif.--(BUSINESS WIRE)--Supermicro, Inc (Nasdaq: SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced it has entered into a definitive credit agreement providing for a senior revolving credit facility with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders. The revolving credit facility provides for aggregate commitments of $2.0 billion and has a maturity date of 12/29/2030. Borrowings under the facility may be used for. ...

Insight Enterprises Inc. (NASDAQ:NSIT) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 19, Insight Enterprises Inc. (NASDAQ:NSIT) amended its asset-based lending credit agreement by entering into an amendment with JPMorgan and other syndicate lenders. Insight Enterprises, Inc. (NSIT) Bolsters Credit Line to $2 Billion & Approves $299 Buyback Program The amendment increased the company’s credit facility from $1.8 billion to $2 billion, with $1.65 billion avail ...

Core Insights - Dell Technologies Inc. is gaining attention in the AI sector, with Goldman Sachs raising its price target from $175 to $185 while maintaining a "Buy" rating due to improved fiscal 2026 earnings guidance and stronger AI server demand [1][2] Financial Performance - Dell raised its fiscal 2026 EPS outlook to a range of $9.82 to $10.02, driven by stronger-than-expected EBIT growth [2] - The Infrastructure Solutions Group (ISG) segment exceeded expectations and improved margins, with AI server demand increasing among Tier 2 CSPs and higher-margin neocloud and sovereign customers [2][3] AI Server Demand - AI server orders surged to $12.3 billion compared to $5.6 billion in fiscal Q2 2026, with margins also improving sequentially [3] - Dell has increased its fiscal 2026 ISG revenue outlook to the mid-to-high 30% range and raised its fiscal 2026 AI server outlook by $5 billion to $25 billion [3] CSG Segment Performance - The Client Solutions Group (CSG) revenue and margins fell short due to a 7% year-over-year decline in consumer revenue, although commercial revenue grew by 5% year-over-year [4] - Dell anticipates continued benefits from the ongoing PC refresh cycle and Windows 11 upgrades [4] Supply Chain Management - Dell has reassured investors regarding commodity inflation, stating it can recover two-thirds of cost increases within 90 days due to strong supply-chain leverage [4]

Dell Technologies Inc. (NYSE:DELL) is one of the AI Stocks on the Market’s Radar. On November 26, Morgan Stanley raised its price target on the stock to $113.00 from $110.00 while maintaining an “Underweight” rating on the stock. According to firm analysts, Dell’s strong AI server business is a standout accounting for more than 100% of the company’s fourth-quarter revenue guidance upside and the majority of EPS upside as compared to firm estimates and consensus. AI server orders surged more than 150% dur ...

Core Insights - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies [1][2]. Company Summaries - **Bank OZK (OZK)**: Provides retail and commercial banking services. The Zacks Consensus Estimate for its current year earnings has been revised 3.1% downward over the last 60 days [1]. - **Boise Cascade Company (BCC)**: A manufacturer of wood products and building materials. The Zacks Consensus Estimate for its current year earnings has been revised 17.9% downward over the last 60 days [1]. - **Climb Global Solutions, Inc. (CLMB)**: A value-added IT solutions company. The Zacks Consensus Estimate for its current year earnings has been revised 7.6% downward over the last 60 days [2].

Core Viewpoint - Dell Technologies Inc. is highlighted as a significant AI stock to watch, with BofA Securities reducing its price target to $160.00 from $170.00 while maintaining a Buy rating ahead of the fiscal third-quarter earnings report [1] Group 1: Financial Performance and Forecasts - BofA anticipates near-term margin pressure for Dell due to rising memory costs, particularly in DRAM and NAND pricing, predicting a decline in operating margins for both the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) [2][3] - The firm forecasts a -129 basis points impact on total gross margin, operating margin, and earnings per share (EPS) for fiscal 2027, with specific declines of -11 basis points for ISG and -184 basis points for CSG margins [3] - Despite these pressures, BofA expects Dell's Q3 results to align with guidance and market estimates, attributing minimal impact from memory pricing due to inventory timing [3] Group 2: Strategic Responses - Dell is likely to manage the impact of rising memory costs through pricing adjustments and operational expense (Opex) reductions, with projected impacts of -56 basis points and -$0.01 on operating margins and EPS for fiscal Q4 [4] - The company is expected to maintain conservative guidance despite cost pressures, reflecting a strategic approach to navigate the current market challenges [4] Group 3: Market Context - The analysis emphasizes the early stages of AI adoption as a potential tailwind for Dell, suggesting that the company could benefit from this trend despite the current challenges posed by memory cost increases [4]

Core Viewpoint - CDW Corporation, valued at $18.3 billion, provides a diverse range of IT solutions across North America and the UK, serving various sectors including corporate, small business, government, education, and healthcare [1] Performance Summary - Over the past 52 weeks, CDW stock has decreased by 21.5%, underperforming the S&P 500 Index, which has risen by 12.3% [2] - Year-to-date, CDW shares have dropped 19.7%, while the S&P 500 has gained 12.5% [2] - CDW has also underperformed the Technology Select Sector SPDR Fund, which increased by 21.6% over the past year [3] Financial Results - In Q3 2025, CDW reported adjusted EPS of $2.71 and revenue of $5.74 billion, exceeding expectations; however, shares fell by 8.5% due to rising selling and administrative expenses and declining demand in key segments [4] - The Education segment experienced an 8.5% revenue decline, alongside softness in data storage and servers [4] Future Outlook - For the fiscal year ending December 2025, analysts project a 1.4% year-over-year increase in EPS to $9.37, with a positive earnings surprise history [5] - The consensus rating among 12 analysts is a "Moderate Buy," with five "Strong Buy" ratings, two "Moderate Buys," and five "Holds" [5] Analyst Ratings - BofA analyst Ruplu Bhattacharya has reduced CDW's price target to $170 while maintaining a "Neutral" rating [6] - The mean price target of $182 indicates a 30.2% premium to current price levels, while the highest target of $225 suggests a potential upside of 60.9% [6]

Core Insights - ePlus reported Q3 CY2025 results that exceeded market revenue expectations, with sales increasing by 18.2% year-on-year to $608.8 million and a non-GAAP profit of $1.53 per share, which was 61.9% above analysts' consensus estimates [1][3][6] Financial Performance - Revenue reached $608.8 million, surpassing analyst estimates of $518.3 million, reflecting an 18.2% year-on-year growth and a 17.5% beat [6] - Adjusted EPS was $1.53 compared to analyst estimates of $0.95, marking a 61.9% beat [6] - Adjusted EBITDA was $58.7 million, significantly exceeding analyst estimates of $38.3 million, with a margin of 9,642% [6] - Operating margin remained stable at 8%, consistent with the same quarter last year [6] - Market capitalization stood at $2.22 billion [6] Growth Drivers - Strong demand in security, networking, and cloud solutions contributed to the outperformance, with security gross billings rising by 56% year-over-year due to customer investments in AI-driven infrastructure [3][7] - Broad-based growth was observed across customer segments and verticals, except for state and local government, which faced budget constraints [3][7] - Internal automation initiatives improved incident resolution and customer experience, leading to operating leverage that allowed adjusted EBITDA to grow at twice the rate of net sales [7] Strategic Focus - ePlus aims to build momentum through targeted investments in AI, cloud, and security, leveraging its strong cash position for organic growth and acquisitions [4] - The company is focused on enhancing its recurring revenue base through expanded service offerings and strategic hiring [4] - ePlus completed the acquisition of Realwave, a cloud-based AI software platform, to enhance its capabilities in delivering real-time, AI-driven insights [7] Capital Allocation - With over $400 million in cash, ePlus has significant flexibility for growth investments or returning capital to shareholders [8] - The company repurchased 60,000 shares and announced a quarterly dividend as part of its capital allocation strategy [8]

Core Insights - ePlus has shown a solid historical growth rate of 7.3% compounded annually over the last five years, but recent performance indicates a slowdown with flat revenue over the past two years [1][2] - The company reported $2.26 billion in revenue over the past 12 months, positioning it as a mid-sized player in the business services sector, which may limit its competitive advantages compared to larger firms [2] - ePlus has transitioned from a financing company to a full-service technology provider, offering IT solutions, professional services, and financing options [3] Financial Performance - In fiscal 2026, ePlus experienced a strong start with net sales growing 23.4% and diluted EPS increasing nearly 63%, marking a significant milestone with quarterly gross billings exceeding $1 billion for the first time [4] - For Q3 CY2025, ePlus's revenue increased by 18.2% year-on-year to $608.8 million, surpassing Wall Street's expectations by 17.5% [5][6] - The company’s operating margin averaged 7.5% over the last five years, which is considered weak for the business services sector, and it decreased by 1.1 percentage points during this period [9][10] Earnings Analysis - ePlus's EPS grew at a compounded annual growth rate of 10.3% over the last five years, indicating improved profitability on a per-share basis [12] - The company has engaged in stock buybacks, reducing its share count by 1.4%, which has contributed to the increase in EPS, suggesting that the growth in EPS is partly due to financial engineering rather than operational efficiency [13] - In Q3, ePlus reported adjusted EPS of $1.53, up from $1.36 in the same quarter last year, exceeding analysts' estimates [15][17] Market Outlook - Analysts project a revenue decline of 6.2% over the next 12 months, indicating potential demand challenges for ePlus's products and services [6] - Despite a strong quarterly performance, the long-term business quality and valuation will be critical in determining if ePlus is a good investment [18]

Core Insights - Super Micro Computer (NASDAQ: SMCI) has experienced a significant decline in share price, dropping 20% in the last week despite a year-to-date increase of 37% due to its AI rack solutions [1] Financial Performance - Sales decreased by 15% year-over-year, totaling $5 billion [2] - Net income fell by 60%, down to $168 million from $424 million in the same quarter last year [2] - Diluted earnings per share were reduced to $0.26 from $0.67 a year ago, missing analysts' expectations of $0.40 [3] Margin Analysis - Gross margin decreased from 13.1% to 9.3% year-over-year, with management anticipating further declines due to increased costs from a significant design win [4] Market Context - The company has benefited from the AI boom by delivering servers with Nvidia's processing units, but faces intense competition and market share losses impacting recent results [4]