Dell Technologies (DELL) may be up a healthy 55% in 2024, but the computer hardware stock has stumbled in December, down 7% month to date. If past is precedent though, shares could be moving back up the charts by the end of the year.
Dell Technologies' (DELL -1.33%) remarkable stock market rally came to a halt after the company released fiscal 2025 third-quarter results (for the three months ended Nov. 1) on Nov. 26, with shares of the technology giant that's known for its personal computer (PC) and server solutions dropping more than 12% in a single day.
When a stock sells off on short-term concerns, that can be a huge opportunity for long-term oriented investors.
Dell Technologies Inc. (NYSE:DELL ) UBS Global Technology and AI Conference December 3, 2024 4:15 PM ET Company Participants Arthur Lewis - President of ISG Conference Call Participants David Vogt - Hardware Networking Analyst David Vogt Good afternoon everyone. Thank you again for joining the UBS Global Tech Conference.
Dell Technologies (DELL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Although DELL's accelerating AI push and cheap valuation are noteworthy, the sluggish PC market and cautious IT spending are headwinds.
Dell Technologies Inc. experienced strong top-line growth driven by AI infrastructure sales and the general compute refresh cycle, positioning it well for eFY26. Commercial devices offset the -18% decline in Consumer device sales. Enterprise sales are expected to improve in e2h26 as more AI workloads are done at the edge. Dell may realize strong top-line growth in eFY26 as a result of strong enterprise sales for its integrated infrastructure stacks.
While demand for traditional PCs may be keeping Dell Technologies (DELL) and Hewlett Packard Enterprise (HPE) from firing on all cylinders, it's hard to overlook their stocks for exposure to AI.
Dell Technologies Inc.'s AI PC sales and AI server sales underperformed, raising concerns about the anticipated AI PC revolution and overall server demand. Nvidia's efficient Blackwell chips may reduce the number of servers needed, impacting Dell's future server sales and revenue growth. Despite Dell's Q3 revenue miss, the Infrastructure Solutions Group slightly exceeded estimates, but server and networking revenue fell short of expectations.
Dell Technologies is emerging as a key player in AI, with significant capital spending and a strong performance in AI server orders. Despite a recent earnings miss and a 14.42% stock drop, Dell's valuation remains attractive compared to industry peers, presenting a buying opportunity. Dell's forward price-earnings and price-sales ratios are favorable, suggesting limited downside and potential for a reversal recovery in share prices.
Dell investors were hit as the company's outlook at its recent earnings release disappointed. However, its AI growth inflection is expected to remain intact, suggesting the selloff seems overstated. Given SMCI's audit challenges, Dell's ability to gain more share against Supermicro in the hyperscaler market shouldn't be ignored.
Dell (DELL -12.25%) reported mixed results in its latest quarterly earnings release, disappointing investors.