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Dell had its best day in the markets since 2018.

How do you feel about this company, for me personally it's more of a forgotten company and I wouldn't expect any boom from them when today I would say the market is being dismantled by other players, however ...this is quite interesting news.

Shares of $DELL-1.2% are up 21.3% on Friday which is their best day since returning to the public market in 2018. The jump followed an earnings report that beat expectations. Even though the results were down, it was less than analysts' predictions. It was down from the prior year to $22.9 million, versus the forecast of $20.9 million. $. Adjusted earnings per share of $1.74 and according to analysts $1.14.

What was very positive, however, is the forecast from $DELL-1.2%, which is "only" a 12% decline versus the earlier estimate of 15%. What was personally quite surprising and puzzling is that despite the revenue decline, Morgan Stanley on Friday named $DELL-1.2% its top IT hardware replacement for Apple. The firm wrote in a report that Dell "is emerging as the first winner of generative AI," referring to the latest developments in artificial intelligence.



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Morgan Stanley maintained an overweight rating for Apple, but noted the risks of increased regulation around the app store. However, it also said Dell is benefiting from growing demand for AI-powered servers as more companies focus their spending on this corner of the hardware market. Analysts recommend buying the stock and have raised their target price to $70.

"Dell is the first company in our coverage to directly benefit from the Gen AI spending cycle," the analysts wrote, pointing to Dell's disclosure of a $2 billion AI server backlog.

Anyone have this company in their portfolio? I personally never thought about including them or had any interest in them, and this news was quite surprising, but I'm still not thinking about investing in them, at least for now. 😊

I have no experience with the products or their shares. The growth in one day is very nice, but I still don't want DELL stock in my portfolio.

I agree with you. I feel the same way about both products and stocks.

Dell I have a laptop, almost immortal I have to say, but I'm not considering buying stock in the company.

I'm not considering either, this was just informative about an interesting jump higher in a company that may still be familiar to many. I have no experience with Dell at all, previously more with Hp or Asus, now I've been engrossed in Apple for a couple of years. 🤦‍♂️

Definitely, I always love to read it! Anyway, Apple is a heartthrob :D

I certainly wouldn't have pegged Dell as the winner of the whole AI race. But the market reaction doesn't really fit the results for me. Strange.

Agreed, I find it quite interesting too hence the post, I have no interest in the company and have other favorites in the industry. I personally see this brand as rather on the decline in the pc industry.

I would also think that Dellas are not that popular anymore, although I'm looking at a Dell monitor right now and I can't complain.

I don't follow them closely, I just checked the earnings report and they had a 13% YoY drop and the price went up 20%, while HPQ's earnings dropped about 10% YoY and the price fell 11%, I guess they mentioned AI more often in the call?;)

Yes, Morgan Stanly in particular mentioned AI a lot during their reviews and claimed that a lot of AI servers do that to them. As I don't follow or invest in the company in any way, I just wanted to put this up as a post because of the surprising growth. I think there are plenty of other quality companies in this sector. 😊

Well, that's what I call a positive reaction after the results :) Huge beat on estimates and investors gave it back to the stock. The weekly chart looks very strong.

Yes, surprisingly, as you write, congratulations to the investors who believe in them.

That's right. I'm not in that group though :)