2024-05-27 02:59:19 ET
Summary
- Dell Technologies' PC and enterprise server markets are in the midst of a cyclical upturn.
- The company is benefiting from the adoption of Artificial Intelligence, which is driving growth in its Infrastructure Solutions Group (ISG) business.
- Although the stock's valuation may seem high to some, its solid earnings growth and future prospects warrant investors' attention.
Dell Technologies (DELL) is an information technology ("IT") infrastructure and services provider that offers customers everything from data center equipment and enterprise IT solutions to personal computers ("PCs"). The company's industry is cyclical, and in recent years, Dell's products and services have been in a major downturn. The market has recently taken a major interest in the stock for two reasons. First, the company's most important end markets, PCs and enterprise servers, appear to be at the beginning of an upcycle. Second, the company should be a significant beneficiary of Artificial Intelligence ("AI") adoption in the enterprise space. The stock price has gained considerable traction year-to-date, beating the S&P 500 Index ( SPX ) returns by miles.
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Dell Technologies Stock: A Growth Opportunity Worth Considering