HP Inc. stock (NYSE: HPQ) has gained about 8% over the last week (five trading days) outperforming its peer Dell Technologies stock, which has declined about 18% over the same period. However, looking over a longer period, HP stock has gained about 17% year-to-date, compared to Dell stock which remains up by over 80% over the same period.
Dell and Super Micro Computer are thriving due to the rising demand for artificial intelligence.
Dell Technologies stock got slammed as traders considered the company's AI server shipments. Yet even this sizable share price drop is a mere blip on the radar for long-term investors.
After reporting Q1 results after market hours last Thursday and falling -18% on Friday for what was its worst trading day since 2018, the post-earnings dip in Dell Technologies (DELL) stock is starting to look like a buying opportunity.
Dell Technologies Inc (NYSE:DELL) stock suffered a sharp post-earnings drop at the end of May, after the company warned of margin pressure due to artificial intelligence (AI) investments, losing 17.9% for its worst daily percentage loss since December 2018.
Dell stock crashed 20% after reporting. Is there a demand problem?
Corporate earnings continue to move stocks more than any other factor, barring unexpected shock events. And while a lot of stocks rise significantly after a company's quarterly results are made public, many stocks dive, opening up buying opportunities for investors who are on the hunt for bargains, particularly among blue-chip names.
Dell Technologies reported mixed results with strength in AI server revenue and servers shipped, but flat growth in storage and decline in consumer PC sales. The company is well-positioned for a strengthened end of FY25 and continued strength in FY26 as enterprise customers transition to bringing AI models into production. I anticipate that storage, networking equipment, and endpoints will realize significant growth as AI/ML models are brought into production.
Perhaps there was too much enthusiasm built up for Dell before it provided a much-anticipated investor update.
Dell reported disappointing quarterly earnings figures that sent the stock price crashing down.
Dell Technologies (DELL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Dell beat estimates in its Q1 report, but its overall growth was still weak. Its earnings guidance was below expectations.