Posted 4/6/2024, 3:00:00 PM
Dell Stock Outperforms Apple Over 5 Years on AI Hopes, But Sustaining Growth Crucial to Justify Valuation
- Dell has outperformed Apple stock over the past 5 years, fueled by its infrastructure solutions segment that helps companies build AI data centers
- This segment could see strong growth if investment into AI computing systems continues at current high levels
- However, investing based on hype around hot sectors can be risky if financial growth doesn't follow
- Dell's valuation has expanded significantly, making future earnings growth key to justifying its current valuation
- Proof that Dell is an AI beneficiary is still lacking compared to competitors seeing rocketing revenue and earnings