Dell Computers (DELL)

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.

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).

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

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.

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.

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.

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.

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.

Believes in the CEO, who is collaborating with Nvidia. Dell is being obscured by AI names. 

After falling from $179 to $111, its risk/reward is now positive.

MU focuses mainly on memory chips, massive demand. Stock's sold off. Dell has actually started to build AI right into the computer, creating a bit of excitement.

Instead, he'd recommend AVGO. Or, if you really want to take some risk, QCOM.

It did very well in 2020 when strong demand with big profits in 2021, but a lot of giveback after that. It's a good company, but he doesn't find their hardware segment attractive.

Had a great quarter, but is down 45% from its high, though still up 28% for the year. This is prone to profit-taking who will sell on any bad news, like today.

He just bought Dell recently, and will add more if shares fall. In fact, it was a gift that shares fell after earnings. Sure, there are profitability concerns, but the bigger story is their 30% backlog. They will continue to grow. They will be at the centre of AI hardware.