Dell Computers (DELL-N)

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.

It's had a huge run and the stock got ahead of him. Not only will the iPhone have a new refresh cycle, but also Dell. He will buy it.

Generative AI came along, and the hyperscalers need the servers and blades. Stock sold off because the whisper numbers were so high, earnings couldn't meet expectations.

See his Top Picks for something still left in the food chain.

It's a major enabler of AI chips and now trades at attractive levels.

Entering the S&P index will be positive for them. It's always been well-managed. There's excitement in Dell now because the impact they're making in data centres, and there is a major PC/laptop upgrade cycle coming.

It had a big run up then fell 20% after reporting last week. Dell will benefit from AI. They make good products and services. You can make money in this long term, maybe not short.

Good stock that's come down. Sitting right along its 50-day MA, which traditionally is a great entry point if you think a stock's going to go up. Will continue to see demand in the AI server category. Hopefully, will see better margins come out of that as demand increases. Less risk, as you balance AI exposure with diversity from its more traditional businesses. Yield is 1.4%.

They reported last Thursday. Shares plunged 18% and another 5% today. It was priced for perfection and shares were in a hot rally in previous quarters leading up that report. Expectations were too high and maybe their AI business may not be as profitable as expected. That said, sales momentum is strong and their AI server backlog is up 30% over the past quarter, but isn't driving earnings much yet. The pullback is healthy given the overheated rally before. The AI story is on track but could take a little longer to play out. He still likes it.

It reports Thursday. Their partnership with Nvidia is great. Shares keep rising.