Summary of Dell Technologies Conference Call Company Overview - **Company**: Dell Technologies (NYSE: DELL) - **Event**: UBS Tech Conference - **Date**: December 02, 2025 Key Financial Highlights - **Revenue**: $27 billion, up 11% year-over-year [5] - **Earnings Per Share (EPS)**: $2.59, up 17% [5] - **Shareholder Returns**: $1.6 billion returned to shareholders [5] - **Infrastructure Solutions Group (ISG)**: Grew 24% [5] - **Service and Networking**: Grew 37% [5] - **Operating Margins**: Improved by 360 basis points from 8.8% to 12.4% [5] - **AI Orders**: Record orders of $12.3 billion, totaling $30 billion year-to-date [5] - **Backlog**: Increased by almost $7 billion to $18.4 billion [5] - **Annual Revenue Guidance**: Increased to over $111 billion [5] - **AI Shipments Guidance**: Increased to $25 billion [5] Demand and Market Conditions - **Demand Trends**: Strengthening demand observed across various business segments, particularly in commercial PCs and storage servers [6] - **Quarterly Performance**: Month three of the quarter showed better demand than month one, with double-digit growth in international server demand [6] - **AI Market**: Significant momentum in AI server orders, with a growing pipeline across NeoCloud, Sovereign, and enterprise customers [17] Competitive Advantages - **Engineering Differentiation**: Dell's competitive edge lies in its engineering capabilities, particularly through forward-deployed engineers who work closely with large-scale users [10][11] - **Value Proposition**: Dell positions itself as a value leader rather than a price leader, focusing on comprehensive solutions that include hardware, software, and services [12][13] - **Operational Efficiency**: Dell's systems can be operational within 24 to 36 hours, with a high uptime of 99% or better [11] Supply Chain Management - **Supply Chain Strategy**: Dell emphasizes a strategy of never running out of parts, leveraging long-term agreements and strong relationships with suppliers [20][21] - **Cost Management**: Dell is prepared to pass on increased costs to customers while maintaining mid-single-digit margins [28] AI and Infrastructure Development - **AI Demand**: The company sees exponential growth in token demand generation for AI, indicating a long-term positive outlook for AI-related infrastructure [18] - **Infrastructure Evolution**: Dell is adapting to a bifurcation in traditional infrastructure and accelerated computing, with a focus on integrating various types of accelerators [36] Storage Market Dynamics - **Storage Performance**: Dell's storage business faced challenges due to declines in third-party IP but showed growth in its proprietary storage portfolio, particularly PowerStore and all-flash arrays [49][50] - **Future Outlook**: Expectations for storage growth align with market trends, with a focus on growing at or above market rates [53] PC Market Insights - **Windows 11 Transition**: The transition from Windows 10 to Windows 11 is taking longer than expected, with a significant installed base still needing upgrades [57] - **Market Strategy**: Dell aims to expand its market coverage and capitalize on the ecosystem of complementary products to drive growth [59] Investor Sentiment and Communication - **Investor Concerns**: There are concerns regarding the ability to maintain margins and secure parts amidst rising costs [61] - **Communication Gaps**: The company acknowledges the need to better communicate the performance of its ISG business and the underlying growth in its Dell IP portfolio [60] Conclusion - Dell Technologies is experiencing robust growth driven by strong demand in AI and infrastructure solutions, while also navigating challenges in supply chain management and market transitions. The company remains optimistic about its competitive advantages and future growth prospects in both the AI and traditional server markets.

Group 1 - Dell Technologies is initiated with a Strong Buy rating and a price target of $135, recognized as a global leader in IT infrastructure, commercial PCs, and cloud solutions [1] - The investment conviction is based on two compounding catalysts that are expected to drive growth [1] - Moretus Research emphasizes a structured, repeatable framework to identify companies with durable business models and mispriced cash flow potential, focusing on U.S. public markets [1] Group 2 - Moretus Research combines rigorous fundamental analysis with a judgment-driven process, avoiding noise and overly complex forecasting [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, emphasizing comparability and relevance [1] - The research coverage tends to favor underappreciated companies undergoing structural change or temporary dislocation, aiming for asymmetric returns through dispassionate analysis [1]