From Investing.com: 2024-05-20 10:24:54

Hedge funds are targeting Dell Technologies for short-selling due to skepticism around its recent stock performance and growth projections, focusing on its purported AI server growth despite a 26% rise in May attributed to a short squeeze. Analysts believe Dell’s AI server demand could affect its profitability, leading to doubts about its long-term viability. Most hedge funds view Dell as an “AI faker” and have negative sentiments towards the stock.

Analysts at Mizuho have observed increasing debate among hedge funds regarding Dell Technologies, with only 2.6% of Dell’s float currently being shorted. Despite a recent 26% rise in May, skepticism remains high among funds, pushing them to question the sustainability and profitability of Dell’s AI-related growth and its gross margins. The sentiment towards Dell among hedge funds is overwhelmingly negative.

Mizuho analysts have noted a strong negative sentiment among hedge funds towards Dell Technologies, with skepticism surrounding its recent performance and growth projections, particularly relating to AI server demand. Dell’s current 20x P/E ratio is considered excessive by many funds, casting doubts on the company’s long-term viability.Despite a recent short squeeze causing a 26% rise in May, many hedge funds are skeptical about Dell Technologies’ true growth potential and the sustainability of its AI server demand. These funds are turning their attention to Dell for short-selling, questioning its profitability and long-term prospects.



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