Speaker is bullish on Dell long-term ('love it for down the road') but cautious short-term due to market nerves and need to sustain gains.

Let's focus on the [music] one-day chart for Dell, the company getting some reaction after reporting earnings late yesterday. Remembering this has run up 250% this year into the print.

So, there had been a lot of high expectations. It cleared the bar. We're up another 4% right now.

Many analysts had told me that it did still have room to grow, particularly because of that AI server demand offsetting the bear case [music] for memory pricing. So, let's dig into the report that we heard from Dell and the reaction we're seeing from the sell-side analysts said this morning.

The reaction's to the upside, Stam. I mean, the dust settled and it held onto the gains that we saw yesterday when we were watching it come across the wire. Albeit a little bit lower than what we saw after hours yesterday, we're still up about 4 and 1/2% on these record orders for AI servers and some other record metrics, including their revenue here.

Uh their revenue for the quarter was a record $47 billion. That was a 58% increase year over year. Earnings per share came in at $6.34. That was up 273% from the year-ago period.

Adjusted earnings also rose 203% to $7.04 per share. They also booked a record $60.9 billion AI server backlog. They exited the quarter with a record $95 billion backlog.

Dell also saying it saw growth in its traditional servers, networking, and storage businesses. And because of all of this, they uh the CEO went on to say, "With AI momentum accelerating and our opportunity expanding across the portfolio, we're raising our full-year fiscal 2027 revenue outlook by $25 billion to $192 billion. That's up nearly 70% year over year."

Now, Dell has seen its orders balloon as these enterprise customers adopt AI and use AI servers locally to run these agentic AI queries, of course that has sent Dell's stock up more than 250% year-to-date as of this morning.

But we did get some sell-side reaction here. We've got B of A raising their price target to $600 from $505. For reference, right now we're trading about 443. They're keeping a buy rating.

They said demand continues to outpace supply. It's creating a solid pricing environment for Dell. They also really liked that uptick in the fiscal year revenue guidance number, which was a big one.

And they're they say their server revenue, their orders, and their backlog were much higher even than what the firm had modeled.

We got Barclays also raising their price target to 603 from 550 keeping an overweight. Morgan Stanley upping theirs to 499 from 433 keeping an equal rate rating slightly less bullish there.

Piper Sandler raising theirs to 558 from 497. They've got an overweight. JP Morgan also raising theirs to 635 from 565. Melius Research had the highest that I found. They raised theirs up to $735 from $650 keeping a buy rating.

And City also raised theirs to 600 from 515 calling it a clear beat surging demand.

A lot of the notes very similar, Sam. The beat was significant. The surging demand was evident. The record numbers were impressive. And all of the numbers were better than any of these analysts had modeled for.

So all in all, just a blockbuster quarter for Dell. And they're being rewarded for it in the markets today.

So, the market has spoken. Uh some phenomenal numbers, it seems like, out of Dell. Uh the bar was high, they jumped over it. How would you approach an example trade? Yeah, great report, great guidance.

The markets are on edge a little bit, though. So, I really love Dell and the entire space for down the road, but I think for right now, um got to feed this move higher. And and we're already, unfortunately, about 30 bucks off the highs from earlier today.

There is big support around 435, resistance up where we hit earlier today.

So, what I'm doing is I'm selling an iron condor using September 18th, so going out, you know, couple weeks here. I'm selling the 435 425 put spread on the downside. I'm selling the 480 490 call spread on the upside.

Gives me a really wide area here to make money. I can collect a really nice credit on that, somewhere 6 650 on that. So, my risk is only about $3.50 or so. And on September 18th, my break evens, Sam, on the downside would be 428.50, on the upside would be 486.50.

Okay, good look at Dell post earnings, as we mentioned. We've got HPE next cab off the rank.