Dell Technologies Inc. (NYSE:DELL) is one of the most undervalued NYSE stocks to buy right now. On November 17, Dell Technologies and NVIDIA (NASDAQ:NVDA) announced significant advancements to the Dell AI Factory with NVIDIA to simplify, boost performance, and increase flexibility for advanced environments, supporting enterprises across all AI applications, from traditional to agentic. This move is crucial as enterprises navigate a new era of HPC and AI, facing challenges in managing complex hardware and ...

Summary of Dell Technologies Analyst Meeting - October 07, 2025 Company Overview - **Company**: Dell Technologies (NYSE: DELL) - **Event**: 2025 Securities Analyst Meeting - **Date**: October 07, 2025 Key Industry Insights - **AI's Economic Impact**: AI technology is driving 45% of U.S. GDP growth, with projections indicating it could add $15 trillion to the global economy by 2030, raising global GDP to $150 trillion [6][10] - **Data Growth**: The overwhelming majority of the world's data is created in data centers or at the edge, with a significant increase in data generation expected [6][20] - **AI Adoption**: 85% of enterprises plan to move Generative AI on-prem within the next 24 months, indicating a strong demand for AI infrastructure [8][19] Core Company Strategies - **AI Factory**: Dell's AI Factory supports customers at every step of their AI journey, providing a comprehensive playbook for deploying AI at scale [20][59] - **Investment in AI**: AI CapEx is expected to exceed $400 billion in 2025, significantly higher than previous estimates, indicating a rapidly growing market [12][13] - **Infrastructure Needs**: Data centers will require nearly $7 trillion in investment by 2030 to meet the demand for compute, highlighting the need for advanced infrastructure solutions [46] Financial Performance - **Earnings Growth**: Dell has roughly doubled earnings per share over the last five years, with a target to double EPS again over the next five years [9][10] - **Shareholder Returns**: $14.5 billion has been returned to shareholders, with 97% of adjusted free cash flow returned since the inception of the capital return program [9][10] Market Position and Competitive Advantage - **Leading Market Share**: Dell is number one in compute and storage, with significant market share gains over the last decade [48][49] - **AI-Optimized Portfolio**: Dell's AI-optimized portfolio has grown to at least $20 billion in just two years, servicing over 3,000 enterprise customers [49] - **Engineering Expertise**: Dell's engineering capabilities allow for the creation of bespoke, optimized solutions tailored to customer needs, enhancing performance and efficiency [23][24] Technological Innovations - **Disaggregated Storage Architecture**: Customers are seeing 83% faster read throughput with disaggregated storage architectures, essential for supporting AI workloads [21][20] - **PowerEdge Servers**: The latest generation of PowerEdge servers is designed for high performance and efficiency, crucial for AI and data-intensive workloads [51][52] - **Cooling Solutions**: Dell has introduced advanced cooling solutions to manage the increasing power density in data centers, ensuring optimal performance [50][36] Customer Engagement and Use Cases - **Enterprise Engagement**: Dell has engaged with over 3,000 enterprise customers, with many in the piloting and testing phase of AI deployment [9][33] - **Real-World Applications**: Examples include partnerships with CSX for operational efficiency and Hudson River Trading for high-performance AI workloads in finance [60][61] Future Outlook - **Growth Projections**: Dell is raising its long-term growth framework revenue CAGR from 6%-8% to 11%-14%, driven by AI as a significant tailwind [49] - **Continued Innovation**: The company is committed to staying ahead of industry demands through continuous innovation and customer-centric solutions [45][38] Conclusion - **Strategic Positioning**: Dell Technologies is well-positioned to capitalize on the growing demand for AI infrastructure, leveraging its engineering expertise, market leadership, and comprehensive solutions to drive future growth [47][59]

Founder-Run Companies Overview - Founder-run companies constitute less than 5% of the S&P 500 index but account for nearly 15% of the total index's market capitalization, highlighting their significant impact on the market [2] - Notable founder-led companies include NVIDIA, Amazon, Meta, Berkshire Hathaway, and Netflix, which have redefined industries and created trillion-dollar enterprises [2] Characteristics of Founder-Run Companies - These companies are often born from unique ideas and technological innovations, allowing them to navigate challenges and maintain long-term sustainability [3] - Founders typically invest personal wealth into their ventures initially, facing difficulties in securing external funding [4] Challenges Faced by Founders - Founder-owners often struggle to delegate responsibilities due to skepticism about others' commitment, which can hinder the company's growth and adaptability [5] - The reluctance to delegate can limit the infusion of professional expertise, impacting the company's ability to scale effectively [5] Performance of Founder-Led Companies - Founder-led companies have shown superior performance, with a Harvard Business Review study indicating a market-adjusted return of 12% over three years, compared to a negative 26% for companies with professional CEOs [6] Investment Opportunities in Founder-Run Companies - Current appealing stocks include Netflix, AppLovin, and Dell Technologies, which are identified as high-potential investments [6] Company Profiles Netflix - Netflix, co-founded by Reed Hastings and Marc Randolph, has a market capitalization of $387.7 billion and has evolved from a DVD rental service to a leading streaming provider [8] - The company is focusing on expanding its original content portfolio and international growth, with projected revenues between $43.5 billion and $44.5 billion for 2025 [11] AppLovin - AppLovin, co-founded by Adam Foroughi, has a market capitalization of $129.7 billion and leads in mobile advertising through its AI engine, Axon 2 [12] - The company is transitioning to a software-centric model, enhancing profitability and returns on invested capital [14] Dell Technologies - Dell Technologies, founded by Michael Dell, has a market capitalization of $75.5 billion and is a major player in servers, storage, and PCs [15] - The company is expected to benefit from recovering demand driven by the PC-refresh cycle and strong interest in AI servers, with projected revenues for the first quarter of fiscal 2026 between $22.5 billion and $23.5 billion [18]

Core Viewpoint - Dell Technologies (DELL) has experienced a significant share price increase of 36.6% over the past month, outperforming the broader Computer and Technology sector and the Micro Computers industry, driven by its expanding portfolio and strong partner network [1]. Group 1: Company Performance and Offerings - DELL's infrastructure solutions provide essential hardware and services that support cloud environments, transforming modern data centers with disaggregated infrastructure solutions that integrate storage, cyber resilience, software, and automation [2]. - The company addresses the evolving demands of on-premises, cloud, and edge environments, enabling organizations to manage and secure workloads efficiently with advanced storage systems like Power Protect Data Domain and PowerScale, enhanced by AI-driven ransomware detection [3]. - DELL's automated Private Cloud and NativeEdge offerings streamline deployment and management, ensuring modern data centers are agile, secure, and ready for future challenges [4]. Group 2: AI and Market Demand - DELL is benefiting from strong demand for AI servers, with a notable increase of $1.7 billion in orders for AI-optimized servers in the fourth quarter of fiscal 2025, shipping $2.1 billion worth of AI servers and maintaining a healthy backlog of $4.1 billion [8]. - The company has made significant upgrades to its AI Factory, introducing energy-efficient infrastructure and advanced cooling solutions to accelerate enterprise AI deployments across various environments [7]. Group 3: Partnerships and Collaborations - DELL's expanding partner base includes major companies like NVIDIA, Microsoft, and Meta Platforms, enhancing its AI capabilities and facilitating enterprise AI adoption through next-generation PowerEdge servers and integrated software solutions [10]. - Collaborations with Meta Platforms and Advanced Micro Devices aim to simplify the deployment of AI solutions and enhance telecom network monitoring and management [11]. Group 4: Financial Outlook - For the first quarter of fiscal 2026, DELL expects revenues between $22.5 billion and $23.5 billion, indicating a year-over-year growth of approximately 3% [12]. - Non-GAAP earnings are projected at $1.65 per share, reflecting a 25% growth at the midpoint, with a Zacks Consensus Estimate of $1.48 per share, indicating a year-over-year growth of 42.12% [13]. Group 5: Valuation and Market Position - DELL shares are considered undervalued, trading at a forward 12-month P/E of 0.77X compared to the sector's 6.14X, suggesting a significant discount [14]. - Despite the robust portfolio and expanding partner base, challenges such as a slower recovery in the broader PC market and cautious spending by enterprises may impact profitability [17].