Dell Beats Earnings Despite Slow PC Market, Poised for AI Server Growth
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Dell beat Q4 earnings expectations, showing resilience despite slow PC market, with EPS of $2.20 (vs expected $1.72) and revenue of $22.32B (vs expected $22.18B)
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AI server market projected to grow rapidly from $30B in 2023 to $150B in 2027, creating big opportunity that Dell is poised to capitalize on
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Dell has strong competitive position, with leading market share in mainstream servers and trailing 12 month storage
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Dell offering complete lifecycle management for AI servers, with $2-$3 of services/storage for every $1 of AI server sale
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Despite stock jump after earnings, valuation remains reasonable, with forward P/E of 16.58 vs sector median of 25.24, representing 50%+ upside potential