Dell Technologies Stock: This Capitulation May Be Your Chance

Summary

  • Dell Technologies stock has dipped ~20% in the past 5 days, creating a massive buying opportunity due to its strong AI server business and financial performance.
  • Dell's AI server backlog surged to ~$9 billion, with revenue rising 7% YoY and net income up 27% YoY.
  • Despite concerns about AI server margins, Dell's absolute profit from AI servers is significantly higher than traditional servers.
  • Even if Dell's FY2026 EPS misses the current consensus by 5%, the stock would look undervalued by over 25% assuming a P/E multiple of just 10x.
  • Dell's current valuation made it a real bargain. I keep my "Strong Buy" rating despite market volatility and new tariffs.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Dell Technologies office Silicon Valley in Santa Clara, California, USA

Intro & Thesis

When you're an investment analyst, it's always frustrating to see one of your top picks declining further away from your price target - this is exactly what I feel looking at Dell Technologies (DELL

Hold On! Can't find the equity research you've been looking for?

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing! There is a free trial and a special discount of 10% for you. Join us today!

This article was written by

12.95K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DELL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About DELL Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DELL

Related Stocks

SymbolLast Price% Chg
DELL
--