De ce acțiunile Dell cresc după rezultatele Lenovo Group

Dell stock price surged to a record high in extended hours after Lenovo Group, one of its biggest competitors, published strong financial results, suggesting that AI-driven demand remains. It jumped by 3.4%, crossing the $500 milestone for the first time ever. This rally may continue as all indicators point to resilient demand for servers, racks, networking, and storage products.

Lenovo Group a publicat rezultate puternice

Dell Technologies stock has done well in the past few months as the ongoing AI boom has led to a surge in demand for its products. 

This demand was demonstrated when Lenovo Group published its earnings, which showed that its revenue jumped by 43% to $26.9 billion, with its AI-related revenue rising by 60% to $9.3 billion. 

Its AI server pipeline jumped by 157% to $54 billion, with the AI infrastructure addressable market soaring to $1.3 trillion by 2030.

Other Dell competitors like HP Enterprise and Super Micro Computer have all published strong numbers. 

These results mirrored those that Dell published in May. Its revenue jumped by 88% YoY in the first quarter to $43.8 billion, with the company seeing $24 billion in AI orders.

Dell’s Infrastructure Solutions Group (ISG) brought in $29 billion, up by 181% YoY, while the Client Solutions Group (CSG) made $14.6 billion, up by 17% YoY. This growth helped it return $2.2 billion to shareholders through buybacks and dividends.

Experții se așteaptă ca creșterea Dell să continue

Analysts tracking the company expect its revenue growth to accelerate in the coming quarters. The average estimate among analysts is that its last quarter’s revenue jumped by 50% to $44.4 billion, while its annual figure will jump by 51% to $171 billion. 

Analysts see the revenue hitting $193 billion next year. The real figures will likely be higher than expected because Dell has a long track record of beating estimates.

Despite these metrics, valuation metrics suggest that Dell’s business is a bargain, with its forward price-to-earnings ratio moving to 23.80, much higher than the technology sector median of 23.4. This figure is much higher than the five-year average of 11, which is understandable as its growth is accelerating.

These numbers explain why analysts have a bullish outlook for the company. The average target among analysts is $492, up sharply from the average estimate of $141 12 months ago. Citigroup sees the stock hitting $515, while Daiwa Securities hiked its target from $170 to $465. Mizuho and Goldman Sachs see the stock jumping to $500.

Dell stock technical analysis

Graficul acțiunilor Dell | Sursa: TradingView

The daily chart shows that the Dell share price went parabolic in May after it released its financial results. After that, it remained in a narrow range, a sign of indecision among investors. 

The stock made a strong bullish breakout this week, moving above the previous all-time high level. It has soared above all moving averages, a sign that bulls remain in control. 

The Relative Strength Index (RSI) has continued rising, signaling rising momentum. Therefore, the stock will likely continue rising as bulls target the psychological level of $600.