Dell Technologies Inc. (NYSE: $DELL) has been soaring in the past few months, driven by the AI wave. The company has fully immersed itself in AI and is currently working on a new array of devices.
Dell Partners with NVIDIA to Roll out AI-Powered Enterprise Solutions
On March 18, Dell announced it was partnering with NVIDIA to roll out Dell AI Factory, an integrated platform, an AI enterprise solution to train and run AI models. It combines Dell’s computer, storage, client device, software portfolios, and professional services with NVIDIA’s chips, making it easy to complete tasks like creating AI datasets.
Dell is working on several AI-powered enterprise solutions spanning data centers, workstations, and cloud. According to the company, the new servers are compatible with NVIDIA’s B200 Tensor Core graphics card unveiled at the GTC developer conference.
The company’s new line of servers, the PowerEdge XE9680, will be offered with NVIDIA’s latest chip and is forecast to perform inference 15 times faster than older generation chips. The result will be a cost-effective solution for companies’ AI needs.
For networking, Dell’s new servers will feature the Spectrum-X and Quantum-2, switch lineups from NVIDIA, designed to use the Ethernet and InfiniBand data transfer protocols, respectively. Both switch lineups are designed to improve data transfer speeds and cut latency.
Dell Expands Partnership with CrowdStrike to Enhance Cyber Security
According to a March 5, 2024 announcement from CrowdStrike, Dell’s Managed Detection and Response services are now available with the AI-power CrowdStrike Falcon XDR Platform. The collaboration will improve the speed, flexibility, and expertise that customers require to respond to cybersecurity threats.
Commenting on the collaboration, Mihir Maniar, a VP at Del, said, “The combination of MDR and the CrowdStrike platform empowers customers to exponentially reduce threat exposures, detect and respond to incidents, and recover applications and systems.”
Michael Dell’s Net Worth Soars By $27 Billion
Amid the AI-driven surge in Dell stock, founder Michael Dell’s net worth has increased by a staggering $27 billion this year alone and is at around $106 billion. Based on Dell’s current valuation, the billionaire is now the 12th richest person globally.
According to the Forbes real-time tracker, Michael Dell is now worth $96.7 billion, placing him at position 15 on the richest people list.
Dell’s Financial Performance
Dell’s financial performance has improved markedly amid a recovery in the global PC industry and a rise in AI solutions. According to financial analysis firm Canalys, PC sales could rise 7% in 2024, giving Dell, which controls 22% of the market, a major boost.
In its fourth quarter fiscal 2024 results, Dell said that the business was seeing signs of recovery, driven by the AI hype. Its Q4 revenue dropped by 11% to $22.3 billion, beating estimates of $22.17 billion by 0.67%, with full-year revenue coming in at $88 billion.
The company believes it will see an accelerated recovery in 2024, forecasting revenue of $91-$95 billion for fiscal 2025. Dell has also been huge on dividends, announcing a 20% increase in dividends to $1.78 per common share.
Dell Stock Performance
DELL shares have jumped 71.92% year-to-date and 219.61% in the past 52 weeks, higher than the 26.95% S&P 500 gain in the same period. On Wednesday, April 3, the stock closed at $128.58, an 8.56% increase from the last closing price. As of 11:21 AM EDT on Thursday, Aril 4, the stock was up another 2% at $131.16 per share.
DELL Price Forecast
Analysts are overwhelmingly positive on DELL stock, giving it a strong buy rating. However, there remain concerns the stock is overvalued. The average forecast for the stock is $117.46, lower than the last closing price of $128.58 by 8.65%. They forecast a broad range for the stock, with a high of $140 and a low of $88.
Meanwhile, investors remain bullish on the stock, with the Barchart Unusual Stock Options Activity Report showing there were 3,600 call options for the $130 strike expiring on April 12. Based on DELL’s last closing price of $128.58, it signals the market is bullish on Dell’s short term performance.
Should You Add DELL To Your Portfolio?
Dell faces a major tailwind from the AI hype, which it has successfully capitalized on. Additionally, the PC market has recovered well, as reflected in the company’s fiscal 2025 forecast. The company is also planning to roll out AI PCs, which could give it a competitive edge in the PC business.
Based on its current trajectory, DELL stock is a great option for those who missed out on the NVIDIA boom and are looking to gain exposure to the AI industry.
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