Dell's bull thesis rests on sustained AI server demand and margin expansion, evidenced by five consecutive quarters of raised guidance, despite concerns over long-term growth sustainability.

We uh are really looking at this rocket ship of Dell today which is really impressive. Uh Dell now up 10%. Now it's uh come off a line over here. We have a line at 417 really rocketing right off of that post earnings here.

Uh but we've been rubber banding around 417 on Dell for a while now coming back up to 466 which is also where we've been hanging out for a bit.

hopefully Dell could just be the stock that lifts the entire market up. You got some profit taking right there at open. But look at that. It's already trying to turn green beyond where it was at open.

Now up about 10.3%. I mean, this could end up being your memer today. Holy smokes. I'd say psychologically there'd be like a $500 ceiling here. You are moving a $300 billion company.

But let's just look at the technicals here on this. So, if we zoom out a little bit on Dell and now up 11.4. Yeah, this is getting some buying enthusiasm. I actually got a line up at 514.

Uh that uh seems to be a spot. Uh let's see. That is it is a fib. Oh, rocket ship when you zoom out like that.

All right, let's look at Dell. Dell was juicy. Watch my video on it from last night if you didn't yet, right? For investors in these sorts of companies and Dell's one that's getting a a great um bid here because they have this really really solid forecast showing that there is demand and it's looking, you know, like it's going to continue to drive revenue into the future.

Carmen, Del just raised its sales outlook to $25 billion, but is that sustainable? we were just talking about that in the course member liveream this morning about how you know one of the stories really for Dell is what we've actually been talking about about this this enterprise AI adoption

you look at Dell earnings for example, there's there's no slowdown right now.

Uh, how does that mean Dell is moving? Dell Dell. Oh, whoa, look at that. Dell could not hold. Holy smokes. Kind of needed Dell to hold to be excited about hardware. It's supposed to lift all ships over here and it ain't.

Uh, just went from I mean, I think we were up even more than 10% there for a moment. What do we close at yesterday? Let's go find out. I think it was 417. So yesterday we closed at uh close.

I trying to get before earnings right here. No, this was the closing bell. Closing bell was 424. Okay. So 424 483.94 divided by 424. Ah, 14% at its high. Holy moly, that's incredible.

How is um how is Dell doing? Cuz they went down to like four. Yeah, they're down at 4%. That's weird. That's not so great for a Broadcom setup, but you know, whatever.

Um, we also had Dell yesterday, huge demand for their AI servers. What's interesting about Dell specifically is that it wasn't just one quarter. Um, Dell, I think I'm right in saying, has for five straight quarters raised its revenue outlook.

So, they've basically been saying for more than a year, things are getting better, things are getting better, things are getting better, things are getting better. And in the real world, um, Nvidia doesn't sort of get its chip and put it in a box and send it out.

That's not how it works. Dell assembles the servers. Others do that, too. And those servers go from Dell to the projects, the data centers. And so Dell is actually a very good barometer and crystal ball of real world build and real world deployment.

Um, you know, the the sales forecast is up by $25 billion, but it's $25 billion of AI server. That that's quite tangible. And so they've had a lot of momentum in their own story saying this has accelerated, this has improved.

Shares of Dell higher off session highs with the company boosting its annual sales outlook by a massive $2 billion with AI server revenue now expected to triple to $74 billion this fiscal year.

Dell also reported a $95 billion AI server backlog and earnings in the quarter, well ahead of Wall Street's expectations.

Dell continues with momentum. This is the fifth straight quarter where they basically raised their outlook. It's just a powerhouse in the uh server area and you know a few years back Dell was considered dead or almost what I would call a dinosaur but they're just you know they've been great in terms on the server side and it's not just the AI servers I'm going to point to it's also their servers where the revenue was up over 110% year-over-year because if you're going to have AI servers the corporations also need their traditional server infrastructure upgraded.

I'm looking at Dell shares on a sort of longer time horizon. So even year to date actually 252% gain but it took some time for them to get credit or at least for like the market to understand you need to have a Dell to put the server design together.

I do because they're the leader in this space and they are very good in terms of their competitive advantages. They have a great breath of products. Their supply chain is phenomenal.

Their client relationships are great. And they've also been in the process of going through an optimization program in terms of cleaning out the product lines that aren't going to work and maximizing their margins.

That's another thing I think they don't get enough credit for. This year their operating margins were over 11%.

I like the Dell talk by the way. I mean this is like Dell and the margins is the right thing to talk about. the story on the technology side has been that Nvidia dominates the content ownership of the server.

You know, Dell doesn't really contribute that much to it. But if we get to that that $ 32 trillion number, surely Dell is going to take a big slice of that market.

definitely the case because they've got the entire uh company lined up to continue to take share and they're by far away the number one player in the server and AI server space.

So yes, if that survey is correct, which is very interesting because the last survey I saw was through 2030 going to 8 trillion, but now we're looking at 32 trillion. As you said, that's a huge number and Dell will definitely benefit.

And I think a lot of analysts on the sell side are seeing that and you're seeing a lot of the estimates today push up by quite an amount.

So, uh, I want to go back from Dell because see Dell, this is another thing we talked about this morning, uh, in in the course live. You can have this Dell boom right now. The question is what's the terminal growth?

We touched on some of that uh, this morning because that's ultimately how you want to underwrite these uh, and uh, you know, are you cyclical? Are you not? Are you always going to see these higher margins?

How sustainable are these structurally higher margins? So far it's going very well. That's why the stock's being very well rewarded.

you could simultaneously explain how Dell is building out server infrastructure and booming and the Neoclouds are suffering. could explain could explain why Dell is rocketing

That was Dell.

Dell recovering back up to 8%.

I think this is on the back of Dell, honestly, just the continued hardware spend.

Dell is supposed to push you to the new levels. this hardware issue with uh the CPOS's, the Nvidia, the Dell, the Sam Alman, the Core Weave. All of this kind of loops together.

Dell up 9% today while at the same time Marll is down 2%.

Enterprise data centers Dell up 8% today. They don't supply the hyperscalers. They're not trying to sell hyperscalers Vera Rubin chips. They're trying to go to businesses and say, "Look, we'll get you localized data center compute in a box, in your own box.

We'll we'll deliver the rack, the power supply, the switching equipment, the CPUs, the GPUs. We'll put it all together in a box for you. And we only end up taking like a 6% net margin.

So, why do it yourself? We'll set it up for you, and then we'll sell you our software to go with it, so it's nice and easy for the customer."

Who knows? Maybe that rally's already come. I mean, Dell's up like 3x, right? Maybe it's too late.

The company that wins on enterprise AI right now is Dell. The problem is how long is that growth going to keep up? But then again, that's what people have been saying for the last two years.

It's like how does a company with 4% margins go to five, go to six, go to seven, go to 8% net margins? Well, it's because of the AI boom, but how long does that go?