Dell Computers (DELL)

Is not concerned with rising costs. Dell has much-higher earnings backed by strong demand. They can pass on costs to their customers.

Earnings are surprisingly strong. Dell is clearly taking share from Super Micro Computer as the data centre build-out takes shape. Their backlog grew, raised guidance, and infrastructure services grew 181% over a year. Also, there's a huge share buyback, but we're still in early days. Earnings and margins will continue to be strong with these data centre names. Revenues have been growing 20% annually consistently. Demand is strong and will endure.

The 30x forward PE is justified, given strong earnings. He doesn't know how long this momentum will last, but he wouldn't jump off the ship today. The hyperscalers have so much free cash flow to keep buying. If the ROI doesn't emerge later, then this momentum could come to a stop, but he expects this to keep momentum to keep going for a few years.

Is up 24% this year and 64% the past year. Is a data centre powerhouse because of its red-hot server business.

The only reason to own this is for its infrastructure services group, which is key to the data centre build-out. Is growing 25% annually. Their PC business is anemic in past years, but is priced into shares. Are buying back shares, great CEO/founder, and important to data centres. Expect 15-20% return if the AI narrative is positive, but if negative, this will slide with the cohort.

Likes it for trading in and out. Recently got back in. 12-month price target of $164. Between its screens and networking, it's a good play within the whole AI infrastructure and networking space.

Gross margins are down 1.4% but operating margins rose because of cost-cutting. Shares rose after earnings because they increased guidance. The infrastructure solutions group is the data centre-AI play, and is growing revenues by 27%. The PC area is anemic.

It reports Tuesday. Not worried. The CEO will source his semis at a good price. He expects good news about the data centre and the enterprise. own this before the report. 

Was downgraded today on the basis of short-term margin compression, which she feels is likely due to the sharp increase in memory prices. But she thinks Dell is taking market share from SMCI in data centres (Dell's infrastructure services group, specifically) and will continue to. Earnings next week should provide clarity and potentially a buy.

Is a leader. It works with Nvidia to integrate AI, generate strong business. They hold an analyst meeting on Tuesday.

Sold most of her holding. Dell's growth engine is their infrastructure services. Are taking strong market share from SMCI. But she felt the high-$130s was a temporary top, so she sold some shares. She would get back in the low-$100s.

It's disappointed. It's well-positioned in tech, including semis, but hasn't executed. It missed earnings a few times. It has rebounded a lot from his early April lows. He sold it. But it should benefit from what's happening in tech. There are better names out there.

They reported last week. Dell boasts $12.1 billion in AI systems orders. Expected to grow earnings 15%. Shares have fallen, so it's an opportunity now.

Was -2.87% today and -3.59% the past week. Dell is getting hit from (the many) government contractors being forced the Trump government to justify their purchases.