On the heels of an incredible rally, stocks are off to a strong start in 2025. After surging 23.3% across 2024's trading, the S&P 500 index rose roughly 1.2% early in this year's trading before flattening as of Tuesday's market close.
Dell Technologies' stock has surged over 50% in the past year, driven by its servers business in the AI sector. Technical indicators, including moving averages and Bollinger Bands, suggest further gains despite a neutral chart. Earnings show satisfactory growth, with revenue up 10% YoY and EPS up 16% YoY, reflecting fair valuation.
The exponential growth of artificial intelligence (AI) in multiple sectors of the economy is expected to add trillions to the world's gross domestic product. Investors can already see this playing out, with top AI hardware and software companies reporting strong expansion in their businesses and their revenues over the past few years.
The Investment Committee give you their top stocks to watch for the second half.
Although DELL's accelerating AI push and cheap valuation are noteworthy, the sluggish PC market and cautious IT spending are headwinds.
When you think of artificial intelligence (AI) computing, Dell Technologies (DELL 0.37%) probably isn't the first company you think of. Dell likely reminds you of a laptop or computing station you use at work, not big, powerful AI computing.
The stock market enjoyed a strong year in 2024 as the S&P 500 hit new records. The challenge for investors looking to get into the market amid such a strong bull run, however, is that valuations for some stocks have gotten high, perhaps even wildly overpriced.
Dell Technologies is experiencing strong growth in AI server shipments, with revenues expected to grow ~9% this year, despite challenges in its PC segment. Management has upgraded the company's AI market opportunity to a 22% CAGR, with ISG revenues growing robustly, particularly in Servers & Networking. Dell's PC segment remains a drag, but potential PC refresh cycles in 2025 could alleviate this, supporting overall growth and margin improvements.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
In 2024, companies were seizing the AI opportunity and calling workers back to the office. Few big businesses embodied those trends more than PC maker and cloud storage provider Dell.
Zacks.com users have recently been watching Dell Technologies (DELL) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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.