Dell Technologies Inc. (NYSE:DELL) is one of the Must-Watch AI Stocks on Wall Street. On November 20, BofA Securities reduced its price target on the stock to $160.00 from $170.00 while maintaining a Buy rating. The price target cut comes ahead of the company’s fiscal third-quarter earnings report scheduled for November 25. The firm is cautiously positive on Dell, citing near-term margin pressure from rising memory costs. However, it anticipates the company to manage this through pricing and Opex controls ...

Core Insights - Cisco Systems (CSCO) reported first-quarter fiscal 2026 non-GAAP earnings of $1 per share, exceeding the Zacks Consensus Estimate by 2.04% and reflecting a year-over-year increase of 9.9% [1] - Revenues reached $14.88 billion, surpassing the Zacks Consensus Estimate by 0.71%, with a year-over-year growth of 7.5% [2] Financial Performance - Total Annual Recurring Revenues (ARR) were $31.4 billion, up 5%, with product ARR growth of 7% [2] - Total subscription revenues amounted to $8 billion, representing 54% of Cisco's total revenues [2] - Total software revenue increased by 3% year over year to $5.7 billion [2] - Product revenues in Q1 were $11.08 billion, accounting for 74.4% of total revenues, with a year-over-year increase of 9.5% [5] - Service revenues were $3.81 billion, making up 25.6% of total revenues, and increased by 2.1% year over year [5] Segment Performance - Networking revenues were $7.77 billion, up 15% year over year [4] - Security revenues decreased by 2% to $1.98 billion [4] - Collaboration revenues fell by 3% to $1.06 billion [4] - Observability revenues increased by 6% to $274 million [4] Geographic Performance - Americas' revenues grew by 9% year over year to $8.99 billion [6] - EMEA revenues climbed by 5% year over year to $3.78 billion [6] - APJC revenues also increased by 5% year over year to $2.11 billion [6] Operating Metrics - Non-GAAP gross margin was 68.1%, expanding by 120 basis points year over year [7] - Non-GAAP operating income was $5.12 billion, reflecting an 8.4% year-over-year increase [8] - Operating margin improved by 30 basis points year over year to 34.4% [8] Balance Sheet and Cash Flow - As of October 25, 2025, cash and cash equivalents totaled $15.7 billion, down from $16.1 billion [9] - Total debt remained stable at $28.1 billion [9] - Cisco returned $3.6 billion to stockholders through share buybacks and dividends [10] Guidance - For Q2 fiscal 2026, Cisco expects non-GAAP earnings between $1.01 and $1.03 per share, with revenues projected between $15 billion and $15.2 billion [11] - For the full fiscal 2026, non-GAAP earnings are expected to be between $4.08 and $4.14 per share, with revenues anticipated between $60.2 billion and $61 billion [12]

Core Insights - Cisco Systems reported $14.88 billion in revenue for the quarter ended October 2025, marking a year-over-year increase of 7.5% and an EPS of $1.00 compared to $0.91 a year ago, exceeding the Zacks Consensus Estimate of $14.78 billion by 0.71% [1] Revenue Breakdown - Revenue from Networking products was $7.77 billion, surpassing the estimated $7.34 billion by analysts, reflecting a 15% increase year-over-year [4] - Revenue from Observability products was $274 million, slightly below the estimated $288.48 million, with a year-over-year increase of 6.2% [4] - Services revenue reached $3.81 billion, aligning closely with the $3.8 billion average estimate, representing a 2.1% year-over-year increase [4] - Security product revenue was $1.98 billion, falling short of the $2.24 billion estimate, indicating a year-over-year decline of 1.8% [4] - Total Product revenue was $11.08 billion, exceeding the $10.95 billion estimate, with a year-over-year growth of 9.5% [4] - Collaboration product revenue was $1.06 billion, below the $1.09 billion estimate, reflecting a year-over-year decrease of 2.8% [4] Gross Margin Insights - Non-GAAP Gross Margin for Services was reported at $2.69 billion, matching the average estimate [4] - Non-GAAP Gross Margin for Products was $7.45 billion, slightly above the estimated $7.38 billion [4] Stock Performance - Cisco shares returned +4.4% over the past month, compared to the Zacks S&P 500 composite's +4.6% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $169.7 million, representing a 173.6% increase year-over-year and a 9.1% increase sequentially [4][17] - Gross profit was $40.8 million, with a gross margin of 24.1%, compared to 4.5% in Q3 2024 and 8.2% in Q2 2025 [17][18] - Adjusted EBITDA was positive $43 million, a significant improvement from negative $7.9 million in Q3 2024 [21] - Net loss for the quarter was $266.7 million, compared to $50.1 million in Q3 2024 [20][24] Business Line Data and Key Metrics Changes - Self-mining revenue was $130.9 million, up 315.6% year-over-year and 120.7% sequentially, driven by a 273.1% year-over-year increase in self-mining hash rate [17][21] - Seal Miner sales revenue was $11.4 million, compared to $0 in Q3 2024 and $69.5 million in Q2 2025 [17] Market Data and Key Metrics Changes - The average operating self-mining hash rate increased to 29.1 exahash per second, a 273.1% year-over-year and 105.4% sequential increase [5][17] - As of the end of October, the company achieved 41.2 exahash per second, surpassing its target of 40 exahash per second [6] Company Strategy and Development Direction - The company aims to transition from a Bitcoin mining leader to a vertically integrated Bitcoin infrastructure and AI platform [4] - Future growth will focus on three strategic pillars: Bitcoin mining, ASIC development, and HPC AI [7] - The company plans to develop data centers using its internal team and strategic hiring, moving away from a joint venture model [8][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth in self-mining and AI cloud services, anticipating significant demand in both sectors [12][78] - The supply and demand imbalance for AI compute is expected to persist well into 2027, with potential revenue exceeding $2 billion by the end of 2026 from AI cloud services [12][78] Other Important Information - The company has a total available electrical capacity of approximately 1.6 gigawatts and a global power pipeline of about 3 gigawatts [14] - The company is actively seeking low-cost power sites globally to reinforce its competitive advantage [15] Q&A Session Summary Question: What is the progression of the HPC opportunity? - Management confirmed simultaneous expansion in Malaysia and the U.S. for AI cloud services [36] Question: Are all AI services focused on NVIDIA? - Currently, all AI initiatives are largely NVIDIA-based, with no plans to develop proprietary AI chips [39] Question: What was the process for acquiring the Niles, Ohio site? - The Niles site was strategically acquired to provide long-term optionality, with energization expected in Q1 2029 [41] Question: What caused the delay in the Seal 04 miner chip? - The delay is due to the complexity of implementing new architecture and design changes [46] Question: How will the company decide between cloud service and co-location? - The primary focus is on AI cloud services, with co-location being opportunistic [54] Question: What is the expected return on invested capital for cloud services versus co-location? - The return profiles differ significantly, influenced by construction costs and end-user requirements [95]

Core Insights - Hewlett Packard Enterprise Company (HPE) is valued at $27.4 billion and specializes in enterprise technology solutions, including servers, storage, networking, cloud infrastructure, and data management [1] Performance Overview - HPE shares have outperformed the broader market over the past year, gaining 20% compared to the S&P 500 Index's 17.4% increase [2] - In 2025, HPE stock is up 14.3%, trailing the S&P 500's 16% rise [2] - HPE has lagged behind the Technology Select Sector SPDR Fund (XLK), which has gained 30.8% over the past year [3] Recent Developments - On October 16, HPE shares fell 10.9% after the company provided a weaker-than-expected fiscal 2026 outlook, forecasting revenue growth of 5%–10% compared to the 17% expected by analysts [4] - HPE guided adjusted EPS to be between $2.20 and $2.40, below the consensus estimate of $2.42, leading to disappointment among investors [4] Earnings Expectations - For the current fiscal year ending in October, analysts expect HPE's EPS to decline by 12.1% year over year to $1.52 on a diluted basis [5] - HPE's earnings surprise history is mixed, with two beats and two misses in the last four quarters [5] Analyst Ratings - Among 20 analysts covering HPE, the consensus rating is a "Moderate Buy," consisting of seven "Strong Buy" ratings, one "Moderate Buy," and 12 "Holds" [5] - The analyst configuration has become more bearish, with only eight analysts suggesting a "Strong Buy" [6] - Evercore ISI's Amit Daryanani reiterated a "Buy" rating on HPE with a price target of $28 on October 17 [6]

Core Viewpoint - Dell Technologies Inc. is recognized as a trending AI stock with strong opportunities, particularly benefiting from enterprise data center refreshes and AI infrastructure buildouts [1][2] Group 1: Investment Potential - Piper Sandler initiated coverage on Dell with an "Overweight" rating and a price target of $172, indicating strong growth potential [1] - Analysts believe Dell will be a primary beneficiary of a robust enterprise data center refresh expected to be particularly strong in 2026 [1][2] - Approximately 50% of units are still in need of refresh, which presents a significant opportunity for Dell [1][2] Group 2: Market Position and Challenges - Dell faces secular headwinds due to the shift towards cloud solutions by enterprises and potential market share losses in the PC segment [2] - Despite these challenges, Dell's server business is significantly tied to AI, with 45% of its server business being AI-related [1]

Core Insights - Dell Technologies has seen a 17% increase in stock price over the past month, but Hewlett Packard Enterprise (HPE) may present a more attractive investment opportunity due to its superior revenue growth and profitability metrics [2] - Regular assessment of investment alternatives is essential for a robust strategy, with HPE showing better performance indicators compared to Dell Technologies [2] Company Performance Comparison - HPE's revenue growth over the last 12 months was 14.0%, while Dell's was 10.5%. Over the past three years, HPE's average revenue growth was 5.9%, significantly outperforming Dell's -1.3% [6] - HPE's three-year average margin stands at 7.6%, compared to Dell's 6.1%, indicating stronger profitability for HPE [6] Business Segments - Dell operates in various segments including infrastructure, client devices, and VMware, offering a range of products such as desktops, workstations, software, multi-cloud solutions, networking, security, and digital workspace solutions [4] - HPE focuses on data solutions, general and workload-optimized servers, and networking hardware, including wired and wireless components like Wi-Fi access points, switches, routers, and sensors [4]

Core Viewpoint - Broadcom is considered a must-own stock in the AI sector due to its diverse involvement in AI capital expenditures and strategic positioning compared to competitors like Nvidia [1][2]. Company Analysis - Broadcom is involved in various aspects of AI, including hardware, software, and infrastructure, providing a diversification benefit that may mitigate risks if the AI market experiences volatility [4][5]. - The company has a significant partnership with OpenAI, enhancing its relevance in the AI landscape [2]. Technical Indicators - The 50-day moving average is highlighted as a critical technical indicator for Broadcom, as the stock has consistently held above this level during sell-offs, suggesting a potential exit point for traders if it falls below [6][7]. Market Sentiment - There is a recognition of the current market being potentially bubbly, with concerns about vendor financing and the sustainability of companies like OpenAI in generating cash flow [8][9]. - The AI arms race is perceived to be in its early stages, with ongoing developments and uncertainties, indicating a need for investors to maintain hedges and be prepared for market shifts [10]. Industry Context - Calls for more regulation and safety measures in AI development are emerging, reflecting broader concerns within the industry about the implications of rapid advancements in AI technology [11].

Core Viewpoint - Broadcom Inc is transitioning from a stable cash generator with reliable dividends to a potential leader in high-margin AI infrastructure, which could enhance its competitive position and growth prospects [1][5]. Group 1: Business Transition - Historically, Broadcom has focused on networking, storage, and connectivity chips, which are stable and predictable [2]. - The partnership with OpenAI allows Broadcom to develop software-enabled, high-margin solutions that integrate hardware with AI-optimized firmware and custom ASICs, moving beyond commodity chips [2][3]. Group 2: Market Demand and Growth Potential - The demand for AI compute is expected to drive multi-year growth, as generative AI models scale across hyperscale cloud platforms, leading to increased orders and higher average selling prices (ASPs) for Broadcom's components [4]. - This growth potential is not yet fully reflected in consensus forecasts, providing an opportunity for investors to capitalize on a potentially significant growth story [4]. Group 3: Competitive Advantage and Financial Outlook - The integration of proprietary hardware and software, along with established enterprise relationships, could significantly enhance Broadcom's competitive moat [5]. - High-margin AI solutions are likely to improve free cash flow, which could be used for buybacks, dividends, or strategic mergers and acquisitions (M&A) [5]. - As the market recognizes the expansion of Broadcom's competitive position, the stock price could potentially exceed $400, making it an attractive investment in the AI infrastructure space [6].

Core Insights - Broadcom Inc. is recognized as one of the top AI stocks to buy according to Goldman Sachs, with J.P. Morgan reiterating a Buy rating and maintaining a price target of $400 [1][3]. Group 1: Company Positioning and Strategy - J.P. Morgan analyst Harlan Sur expressed optimism about Broadcom's positioning in the AI sector, noting strong demand for AI and the potential for customer engagements to scale to one million XPU AI clusters [2]. - Broadcom has set an ambitious target of $120 billion in AI revenue by 2030, with a history of exceeding its goals [3]. - The company is on track to launch its first-generation 2nm/3.5D package AI XPU products in 2025, positioning itself as a technology leader ahead of merchant GPU competitors [3]. Group 2: Market Performance and Analyst Estimates - As of September 23, Broadcom's average price target is $382.50, indicating an upside potential of approximately 15.85% from current levels [4]. - Broadcom is a significant player in AI infrastructure, focusing on custom AI chips, networking, and optical interconnects [4].