DELL - Dell: Buy The Dip - The AI Story Remains Solid
2024-06-12 12:45:17 ET
Summary
- Dell's stock has tripled in the past year, driven by its AI hardware segment.
- While Q1 earnings fell slightly short of sky-high expectations, the 30% drop in its share price may be overdone.
- Dell appears undervalued with a low forward P/E valuation and has substantial AI potential.
Dell Technologies ( DELL ) experienced a significant surge in its stock price, appreciating by nearly 500% ($31 to $179) from the bear market bottom in 2022 to its recent peak. Over the past year, Dell's stock has nearly tripled, with the primary driver of this stellar growth being Dell's AI 'hardware division.' Despite a robust 42% YoY growth in its server and networking segment, Dell's Q1 earnings fell short of the market's ultra-high expectations. This dynamic led to a significant drop in Dell's share price, approximately 30% from its recent peak. ...
Dell: Buy The Dip - The AI Story Remains Solid