Dell benefits from demand for local AI infrastructure due to ROI, but long-term growth depends on future renewal cycles after initial saturation.

Part of the reason this price has dropped to less than one dollar is probably due to the release of open weight models, which are getting stronger day by day. This is actually a positive indicator for parts of the economy, and it is one of the reasons why Dell's stock, which we follow on the channel - make sure to subscribe - has skyrocketed.

This is precisely the reason behind the good performance of a company like "Dell" at the moment. Dell performs very well now because whenever you can expand your local computers and set up a data center in your office now, and connect it to a 240 or 370-volt infrastructure, boom, you get connected to the internet because Dell comes and puts in a cabinet, loads the software for you, and has a built-in switch.

It contains a built-in uninterruptible power supply (UPS), and is not a company burdened with debt and pension obligations, and a backup battery. It contains graphics processing units (GPUs) and a central processing unit (CPU).

It contains the complete package inside. It contains copper wires, fiber, and whatever, Ethernet, and Infinity Band. It has already been done. This is why Dell wins, because companies want this locally due to the actual return on investment (ROI ).

That's the issue. It's like once you buy the local devices, you really don't have to buy them again. This is the argument for the decline (bear case), by the way, for Dell. Dell's argument for decline is what the ultimate growth rate is.

Yes, we are thriving now, but once people buy those devices, what does the cycle of renewal and therefore growth look like?