Jim Cramer - Mad Money
Dell Computers
DELL-N
DON'T BUY
Jun 02, 2025
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.
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.
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.
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.