Bill Baruch, Founder, Blue Line Capital Dell Computers DELL-N BUY ON WEAKNESS Jun 21, 2024

Is up 9% today. GOOG and AMD tell us that data centre demand is strong. Shares are well off their highs and are seeing momentum that will continue.

Just bought it. Will benefit from SMCI's woes. Also, in AI, hardware cannot keep up with demand. She bought last week at $130 and sold January $145 calls and got over $7 in call premiums. It's a good trade for the next few months.

He owns both.

Took a bit of profit on DELL. Still holds about a 3-3.5% position in ORCL. If he had to choose, he'd say ORCL (at $189 now), for which his 12-month price target is $207.50.

They had a disappointing quarter after a weak first half, but he expects a better second half. Be patient with this. There's little downside and more upside. But other stocks are better, like Nvidia.

Hold on, buy more down here, and try for the low $90s (but it probably won't go this low). His 12-month price target is $158.50. He's been buying this week, mainly because of the hardware servicing side that feeds the AI ecosystem.

It's on his mind. Shares have come down a lot. The DeepSeek news on Monday had a big impact. He has strong faith in the CEO, but he's waiting to see what will happen with the AI space after DeepSeek. Nobody knows yet.

Shares are on fire. They report Feb. 25. Their infrastructure solutions group is the heart of the data centres and on fire.

It reports Thursday. It could make a comeback, because it helps companies adapt to Nvidia's AI platform. A great CEO. He doesn't expect another bad quarter (he didn't like the last one).

It spiked it last summer over the AI buzz, but the bloom is off the rose over AI adoption. Historically, hardware companies don't have much stickiness; there's more opportunity in software which can adapt.

A tougher economy makes it harder. That said, Dell believes so; they've been in the PC business for 40 years and deserve the benefit of the doubt.