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Latest Notice » Dell Tech: Riding the AI Wave. Is it Time to Buy?
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Dell Tech: Riding the AI Wave. Is it Time to Buy?
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Dell Technologies Inc.(NYSE: DELL) has been in the spotlight recently, especially after its Q4 2024 earnings. The company, known for its personal computers, servers, and other technology solutions, is riding a wave of demand driven by artificial intelligence (AI). Let’s break down what’s going on with Dell and why investors might be paying close attention.
Dell’s AI Momentum
Dell has been making headlines with its impressive performance in the AI sector. The company’s latest earnings report showed that it beat expectations, thanks in part to strong sales of AI-optimized servers. These high-powered computers are designed to handle the complex calculations needed for AI applications, and Dell’s success in this area has helped boost its overall growth.
For Q4 2024, Dell reported sales of $22.32 billion, slightly below the estimates but still ahead of consensus. The more exciting news came from its non-GAAP earnings per share (EPS), which, at $2.20, surpassed both the company’s and analysts’ expectations. This performance was driven by better-than-expected gross margins and lower operating expenses.
Looking Ahead
Dell is optimistic about the future, especially with the continued demand for AI technologies. The company has provided guidance for the Q1 2025 and expects revenue to be between $21-22 billion. For FY2025, Dell anticipates revenue to reach $91-95 billion, with significant growth in its Infrastructure Solutions Group (ISG), thanks to the ongoing AI boom.
What Does This Mean for Investors?
Dell’s strong position in the AI market has not only solidified its credibility in the technology sector but also made it a more attractive option for investors. With AI continuing to grow as a major trend in technology, Dell’s ability to capitalize on this demand could lead to further upside. The company’s stock has already significantly increased, jumping about 19% in after-hours trading following the earnings announcement.
In simple terms, Dell Technologies is doing quite well, especially with the AI boom. The company’s recent earnings report has shown strong results, and the outlook for the future looks promising. For investors, Dell’s growing presence in the AI market and its solid financial performance make it a company worth watching. As AI continues to evolve and expand, Dell’s role in this technological revolution could lead to even greater success down the road |
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Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn't own shares of any companies mentioned.
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About the Author: Billy Toh
Billy is passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek. Prosperus Head of Content & Investment Lead, Billy Toh doesn't own shares of any companies mentioned
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