Dell Technologies stock rises 50%, showing strong growth potential for long-term investors.

From Nasdaq: 2025-01-02 09:52:00

Dell Technologies (DELL) shares have surged 50.4% in the past year, beating the industry and sector returns. Strong demand for AI servers, supported by the Dell AI Factory with partners like NVIDIA and Microsoft, is a key driver. DELL aims for revenue and earnings growth, returning cash flow to shareholders and dividend growth.

DELL has returned $5.5 billion to shareholders since the VMware spin-off. The stock is trading at a discount with a low P/E ratio compared to the sector. Dell’s leading-edge AI servers and partnerships with NVIDIA, AMD, and Intel are driving growth, with strong demand from cloud service providers.

Earnings estimates for DELL show growth in fiscal 2025 and 2026, with a history of beating estimates. The stock is rated a Hold by Zacks, trading below key moving averages. Investors may consider the company’s long-term growth potential but should be cautious of market trends and spending patterns.

Investors may want to wait for a better entry point for DELL shares, given the current Zacks rating. The company’s robust portfolio and partner base make it attractive for long-term investors. While concerns exist about consumer PC market weakness and bearish trends, DELL’s growth prospects remain promising for patient investors.



Read more at Nasdaq: Dell Technologies Stock Rises 50% in 2024: To Buy or Not to Buy?