Core Viewpoint - Dell Technologies Inc. has experienced a significant increase in analyst price targets, reflecting growing confidence in its business strategy and market position, particularly in the AI and cloud sectors [1][5]. Price Target Changes - The average price target for Dell increased from $157.95 a year ago to $180 last month, indicating a positive shift in analyst sentiment [5]. - Three months ago, the average price target was $164.4, showing a notable increase over the past quarter [2]. Financial Performance - Dell reported double-digit growth in both revenue and profit for the second quarter of fiscal year 2026, contributing to the optimistic outlook from analysts [2][5]. Strategic Initiatives - The company's strategic focus on expanding its cloud and IT solutions, along with its transition into the enterprise AI hardware sector, are seen as key drivers for future growth [3][5]. - Dell's partnerships with Nvidia and Hive Digital are expected to bolster its position in the AI and cloud sectors [4].

20 November 2025 | 8:50AM HKT Equity Research Lenovo (0992.HK): First Take: Sep-Q GP in line; adjusted OP income beat; PC margins sustained with Servers loss narrowed; Buy Sep-Q revenues and GM were largely in line with expectations, leading GP to up by 13% QoQ, or 6% / 1% ahead of our / Bloomberg consensus. GM sustained at 15.4% (vs. 15.7% in Sep-Q 2025) despite memory costs upcycle, reflecting Lenovo's strong bargaining power and management capability over its supply chain, along with product mix upgrade ...

Group 1 - Dell Technologies Inc's stock has dropped significantly, currently down 7% to $124.44 after a double downgrade from Morgan Stanley to "underweight" from "overweight," with a price target cut from $144 to $110 due to rising memory drive prices [1] - The stock has been in decline since reaching a one-year high of $167.94 on November 3, now on track for its 12th loss in 14 trading sessions, trading at its lowest levels since early September [2] - The 160-day moving average is at today's low, potentially limiting further losses, while the 14-day relative strength index (RSI) is at 14, indicating the stock is in "oversold" territory [2] Group 2 - Options trading has increased significantly following the downgrade, with 16,000 calls and 13,000 puts exchanged, which is double the typical options volume [3] - The most popular options contracts are the November 120 put and the November 138 call [3] - Over the past 10 weeks, calls have been more popular than usual, with a 50-day call/put volume ratio of 2.52, the highest in the past year [4]

Core Insights - Dell Technologies Inc. is transitioning from a focus on PCs to higher-growth areas such as artificial intelligence and enterprise infrastructure, leading to an increase in long-term growth guidance [4] - The company's market capitalization is currently $108.9 billion, and it has shown strong stock performance, returning 22.3% over the past 52 weeks [1][2] - Analysts expect Dell's EPS to grow 15.8% year-over-year for the fiscal year ending in January 2026, with a consensus rating of "Strong Buy" from 22 analysts [5] Financial Performance - Dell's stock has outperformed the S&P 500 Index, which has risen 19.6% over the same period, and has gained over 38.9% year-to-date compared to the S&P 500's 16.5% [2] - The company has raised its annual revenue growth target to between 7% to 9%, up from a previous target of 3% to 4% [4] - Dell's earnings surprise history shows mixed results, beating consensus estimates in three of the last four quarters [5] Analyst Ratings - The consensus rating for Dell has improved to "Strong Buy," with 15 "Strong Buy" ratings, two "Moderate Buy" ratings, and five "Holds" [5] - Evercore ISI recently raised its price target for Dell to $180 from $160, maintaining an "Outperform" rating [6]

Group 1: Stock Valuation and Performance - The AI business has seen a slight increase, but overall demand for PCs and laptops remains uncertain, particularly for companies like Apple that lack on-device AI capabilities [1][2] - Revenue growth for the company is only 3% year-over-year, which is considered modest, and the full-year guidance is not particularly strong [4] - Current stock valuation is high, with price-to-earnings ratios approaching 45-50, raising concerns about sustainability [5][7] Group 2: Market Dynamics and Competitors - Dell's stock performance has been lackluster despite expectations that it would benefit from current market trends [6][7] - Major chip manufacturers, Samsung and SKH, are expected to raise DRAM and NAND Flash prices by about 30% in Q4, indicating strong demand in the semiconductor sector [12][13] - The cyclical nature of the memory chip market is highlighted, with companies like Micron and Western Digital showing strong trading performance [14][15]

Core Insights - The rise of AI is significantly benefiting technology companies, including Dell, which has recently increased its long-term revenue and profit forecasts due to its expanding role in AI infrastructure [1][2] - Dell's transformation into a key player in the AI server market is evident, with a projected $20 billion in AI server sales this year and a 69% increase in server and networking sales year-over-year [1][5] - The company's long-term revenue growth expectations have been revised upward to 7%-9% from a previous 3%-4%, and earnings per share growth expectations have increased to at least 15% from 8% [5] Company Performance - Dell's stock surged following its earnings call, reaching an all-time intraday trading record, with a 3.4% increase last week and a total growth of 30% year-to-date [5] - The company's traditional PC unit continues to provide stable cash flows, which supports its competitive server business [1] Market Outlook - Dell's COO acknowledged that the AI market is larger than previously anticipated, indicating a significant shift in market dynamics [2] - The CEO of Dell, Michael Dell, is actively involved in high-profile investments, including the takeover of TikTok's US operations, reflecting the company's strategic positioning in the tech industry [3]

Core Insights - Dell Technologies positions itself as a leader in the artificial intelligence sector, anticipating significant growth opportunities driven by AI demand [2][8] - The company has revised its long-term revenue growth forecast to 7% to 9%, up from a previous estimate of 3% to 4%, and expects earnings-per-share growth of 15% or more, nearly doubling its prior forecast of 8% or more [2][3] - Dell's stock experienced a 6% increase to around $155 following the announcement, although it later retraced some gains [4][7] Financial Performance - Dell reported record quarterly revenue in August, exceeding analysts' expectations, attributed to strong demand for AI products [5] - The company has committed to a dividend growth of 10% or more annually through fiscal 2030, extending its previous commitment by two years [3] Market Position - Dell is well-positioned in the AI market with a comprehensive portfolio ranging from data center infrastructure to personal computers [8] - Analysts from Citi and J.P. Morgan have expressed positive outlooks on Dell's stock, with Citi maintaining a "buy" rating and a target price of $160, citing momentum in Dell's AI offerings [6]

Summary of Global Server Market and AI Server Insights Industry Overview - The report focuses on the global server market, particularly the AI server segment, with projections extending to 2027E. The analysis includes various types of servers such as ASIC AI servers, AI training servers, AI inferencing servers, general servers, and HPC servers [1][14]. Key Insights Market Projections - The global server market is projected to grow significantly, with total revenues expected to reach **US$359 billion**, **US$474 billion**, and **US$563 billion** in 2025E, 2026E, and 2027E respectively, reflecting year-over-year growth rates of **42%**, **32%**, and **19%** [14][30]. - AI server shipments are expected to increase, with **10 million**, **14 million**, and **17 million** AI chips required in 2025E, 2026E, and 2027E, respectively. The contribution of ASIC shipments is projected to rise from **38%** in 2025E to **45%** in 2027E [1][8]. AI Server Segment Growth - High power AI servers (powered by **500 TFlops+ ASIC and GPUs**) are forecasted to see a **21%** and **39%** increase in volume estimates for 2025E and 2026E, respectively. Inferencing AI servers are expected to grow by **3%** and **5%** in the same years [3][11]. - Full rack AI servers are estimated to ship **19,000** units in 2025E, increasing to **67,000** units by 2027E, with a total addressable market (TAM) of **US$54 billion**, **US$157 billion**, and **US$232 billion** for 2025E, 2026E, and 2027E respectively [11][30]. Cloud Service Provider (CSP) Capital Expenditure - Leading US CSPs are projected to increase their capital expenditure (capex) by **67%**, **23%**, and **15%** year-over-year from 2025E to 2027E. In contrast, leading Chinese CSPs are expected to grow their capex by **55%**, **8%**, and **6%** in the same period [8][24][27]. AI Chip Demand - The demand for AI chips is expected to reach **9,990 thousand**, **13,631 thousand**, and **16,551 thousand** units for training and inferencing combined in 2025E, 2026E, and 2027E, respectively. The mix of GPU and ASIC chips is projected to shift, with GPUs making up **62%** in 2025E and decreasing to **55%** by 2027E, while ASICs will increase from **38%** to **45%** [3][20]. Additional Insights Revenue Breakdown - The revenue breakdown for AI servers indicates that training servers will generate **US$189.6 billion**, **US$294.6 billion**, and **US$370.6 billion** in 2025E, 2026E, and 2027E, respectively. High power AI servers are expected to generate **US$135.9 billion**, **US$137.9 billion**, and **US$139 billion** in the same years [30]. - General servers are projected to see revenues of **US$133.7 billion**, **US$140.2 billion**, and **US$146.5 billion** from 2025E to 2027E, indicating a recovery in the general server market [30]. Market Dynamics - The growth in AI applications and increased cloud capex are driving the demand for AI servers. OpenAI's user base has quadrupled to **700 million** weekly active users, indicating a broader adoption of AI technologies [3][11]. Competitive Landscape - The report highlights key players in the AI server market, including ODMs like Wiwynn, Wistron, and Hon Hai, as well as companies involved in silicon photonics and liquid cooling technologies [2]. This comprehensive analysis provides a detailed outlook on the global server market, emphasizing the significant growth potential in the AI server segment driven by technological advancements and increased cloud investments.

Core Viewpoint - Dell Technologies Inc. is recognized as a relatively undervalued stock within the S&P 500, particularly noted for its role in AI infrastructure and integrated technology solutions [1] Company Overview - Dell Technologies provides a range of integrated technology solutions, including storage, servers, networking, consulting, PCs, peripherals, and support services [1] - The company has experienced fluctuations in its stock price over the past few years but remains a significant player in the technology sector [1] Investment Sentiment - Jim Cramer has expressed a strong buy recommendation for Dell, emphasizing the potential for a price break before the upcoming quarterly report [1] - Cramer highlights the confidence in Michael Dell's leadership and the company's resilience, suggesting that investors should buy during price dips [1] Market Context - While Dell is seen as a solid investment, there are suggestions that other AI stocks may present greater upside potential with less downside risk [1]

Financial Data and Key Metrics Changes - Consolidated gross billings reached $22.7 billion, growing 12%, with a 10% increase in constant currency [3][4] - Non-GAAP diluted earnings per share of $3.58, a 25% year-over-year increase, exceeded guidance [4][14] - Net revenue was $15.7 billion, up 7% year-over-year, above the high end of guidance [12][14] - Gross profit increased 18% year-over-year to $1.1 billion, with gross margin as a percentage of gross billings at 5% [12][14] - Non-GAAP operating income rose 21% year-over-year to $475 million, with an operating margin of 2.09% [14] Business Line Data and Key Metrics Changes - Endpoint Solutions portfolio gross billings increased 10% year-over-year, driven by demand for PCs and AI PCs [10][14] - Advanced Solutions portfolio gross billings grew by 13% year-over-year, with a notable 8% increase excluding HIVE [11][14] - HIVE gross billings increased in the mid-30s year-over-year, with ODM/CM gross billings up 57% [4][12] Market Data and Key Metrics Changes - Strong double-digit growth in gross billings was observed in Latin America and Asia Pacific & Japan [5] - SMB and MSP segments grew substantially above the company average in most geographies [5] - U.S. public sector business saw low single-digit growth, with state and local strength offset by federal softness [6] Company Strategy and Development Direction - The company is focused on a differentiated and specialized go-to-market strategy to strengthen its competitive position [6][9] - Plans to enhance the Destination AI Enablement Program to support partners in adopting AI solutions [7] - A unified portal, TD SYNNEX Partner First, is being launched to optimize partner experience and streamline operations [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance, particularly in HIVE and distribution [19][30] - The company anticipates sustained demand for PCs driven by the Windows 11 refresh cycle and AI PCs [23] - For Q4, gross billings are expected to be in the range of $23 to $24 billion, with net revenue between $16.5 to $17.3 billion [16][17] Other Important Information - Free cash flow for the year is expected to be approximately $800 million, with Q4 free cash flow projected around $850 million [24][25] - The company returned $210 million to stockholders in the quarter, with $174 million in share repurchases and $36 million in dividends [14] Q&A Session Summary Question: HIVE dynamics in fiscal forecast - Management noted strong growth across all programs and customers, with confidence in continued demand for Q4 [19][20] Question: Comments on PC pull forward and free cash flow expectations - Management indicated limited pull forward for PCs, driven mainly by the Windows 11 refresh and AI PCs [23] - Free cash flow expectations adjusted to approximately $800 million for the year, with Q4 expected to contribute significantly [24][25] Question: Sustainability of current performance - Management believes the dynamics driving overperformance will continue into Q4, particularly in distribution and HIVE [29] Question: Progress in onboarding new customers for HIVE - Management confirmed ongoing diversification of the customer base, with growth primarily from networking and traditional compute [32][33]