2024-04-21 08:30:00 ET
Summary
- Dell's AI-optimized server backlog doubled to $2.9B, but it is still in the early stages of leveraging the AI gold rush.
- Dell's profitability and free cash flow margins have remained strong, and its dividend payout has been upgraded by 20%.
- The AI hype underpins Dell's thesis, but investors must question whether it has reached a peak.
- Sellers have rejected DELL's buying momentum above the $130 level, suggesting profit-taking is underway.
- Buyers looking to exploit Dell's early AI developments should realize they are likely late to the party.
DELL Fell From Its All-Time Highs
Dell Technologies Inc. ( DELL ) surged to a new all-time high earlier this month but has since given up most of the gains made in April, as the S&P 500 ( SPX ) ( SPY ) fell from its record highs. The leading technology hardware company benefited from the AI hype, even though Dell is still in the nascent stages of leveraging the AI gold rush....
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Dell: The AI Juice Could Be Running Out