DELL's AI-optimized portfolio driving strong revenue growth and outperforming the sector

From Nasdaq: 2024-06-24 15:00:00

Dell Technologies (DELL) shares have surged 91.2% year to date, outperforming the Computer & Technology sector’s return of 24.5%. The strong demand for AI servers and the launch of Dell AI Factory have been game changers, with AI-optimized portfolio driving enterprise client wins and robust shipment growth.

In the first quarter of fiscal 2025, Dell’s AI-optimized server orders increased to $2.6 billion, with shipments jumping more than 100% sequentially to $1.7 billion. The PowerEdge XE9680L server and PowerScale F910 storage are additions to Dell’s AI-optimized portfolio, along with new AI PCs powered by Qualcomm processors.

Dell expects revenues between $93.5 billion and $97.5 billion for fiscal 2025, fueled by strong growth in the Infrastructure Solutions Group. With a forward P/E of 16.96X, Dell is an attractive stock for investors, trading at a discount compared to the industry. The expanding partner base and robust liquidity make dividend payouts sustainable.



Read more at Nasdaq: Does DELL’s Expanding AI Footprint Make the Stock a Buy?