Dell Stock Surges on AI Optimism -- Is Dell a Best Buy Now?
On the surface, Dell Technologies (NYSE: DELL) just had a pretty dismal quarter. With the PC and laptop market still working through too much inventory and the data center server market (especially for cloud computing) also suffering some weakness, Dell reported a second-quarter, fiscal 2024 revenue decline of 13% compared to last year.
Nevertheless, though financials were down, Dell significantly beat expectations thanks to strong performance in its artificial intelligence (AI) server business, especially new generative AI services powered by Nvidia graphics processing units (GPUs).
Dell is signaling that more strong performance is coming. At just 26 times trailing-12-month earnings per share, or just under 10 times trailing-12-month free cash flow, Dell is certainly far cheaper than Nvidia -- even cheaper than fast-growing AI server competitor Super Micro Computer. Is Dell stock a buy?
Source Fool.com
