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AI Stock to Soar: Dell Technologies' Post-Nov. 26 Outlook

Eli GrantFriday, Nov 22, 2024 5:57 am ET
1min read
Dell Technologies (DELL) has been on a roll in 2024, with its stock price surging by 76% year-to-date. As the company prepares to release its fiscal 2025 third-quarter results on Nov. 26, investors eagerly anticipate the potential for another strong performance, driven by its robust AI server business. With a solid pipeline of customers and a growing AI server order backlog, DELL stock is poised to soar even higher.

Dell's AI server sales have been a significant driver of its 2024 rally, with revenues reaching $3.2 billion in Q2, a 23% increase from Q1. The company's order backlog for AI servers stood at $3.8 billion at the end of Q2, indicating sustained demand. Moreover, Dell's AI server order pipeline has grown to "several multiples of our backlog," suggesting a strong outlook for the remainder of the fiscal year.

Investors should pay close attention to Dell's AI server sales and order backlog when the company releases its earnings report. Analysts expect earnings of $2.04 per share and revenue of $24.7 billion, but Dell could surpass these estimates, thanks to its strong AI server performance. Additionally, investors should monitor earnings per share (EPS) guidance and adjusted earnings to gain insights into the company's financial health.

One catalyst driving Dell's AI stock higher after Nov. 26 is the struggles of its competitor, Super Micro Computer (SMCI). SMCI has faced allegations of accounting manipulation, management issues, and a failure to file its annual report on time. As customers shift their orders away from SMCI, Dell is expected to benefit, further boosting its AI server sales.

Another factor contributing to Dell's AI stock growth is the global AI server market, which is forecast to reach $177 billion in annual revenue by 2032, up from $38 billion last year. As the demand for AI servers continues to grow, Dell's strong position in the market bodes well for its long-term growth prospects.

In conclusion, Dell Technologies' AI stock is set to soar after Nov. 26, driven by strong demand for its server solutions used for mounting AI chips. With a growing pipeline of customers, a robust AI server order backlog, and a competitive advantage in the AI server market, DELL stock is poised to continue its impressive rally. Investors should monitor the company's key operational metrics and financial indicators, as well as its guidance for the remainder of the fiscal year, to capitalize on the ongoing growth opportunities in the AI sector.
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Rockoalol
11/22
$AFRM Analysts have mixed opinions on these Tech stocks: Affirm Holdings (AFRM), Dell Technologies (DELL), and Elastic (ESTC). In the Technology sector, these companies are garnering significant attention as analysts provide insights into Affirm Holdings (AFRM – Research Report), Dell Technologies (DELL), and Elastic (ESTC). https://www.stck.pro/news/AFRM/93881534/
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OhShit__ItsDrTran
11/22
$DELL Outlook: Look for a Significant Surge in This AI Stock Post-November 26th With an AI-focused strategy, $DELL is set to experience a notable increase in value following the 26th of November. https://www.stck.pro/news/DELL/93872194/
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PlatHobbits7
11/22
$DELL
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comoestas969696
11/22
DELL's EPS guidance will be 🔥 if they keep outpacing competitors. SMCI falling apart is a golden opportunity.
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Searchingstan
11/22
Holding $DELL long-term. AI growth potential is bonkers. Anyone else riding this wave?
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deejayv2
11/22
DELL's AI server growth looks 🔥. With SMCI having major issues, I bet Dell will attract more customers. I'm riding this wave until we hit the next resistance. Who's holding with me?
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provoko
11/22
Global AI market is Dell's ticket to riches
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Substance_Technical
11/22
Super Micro's struggles mean easy wins for Dell
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stydolph
11/22
AI servers will keep $DELL soaring
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TobyAguecheek
11/22
AI servers printing money for $DELL. Keep an eye on that order pipeline; it's huge.
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