Dell Secures Tesla Deal
Like a skilled archer aiming at a bullseye, Dell Technologies has notched a remarkable victory by clinching a significant portion of contracts for Tesla’s AI server expansion. Reports suggest that Dell stands to gain handsomely from this lucrative alliance, bolstering its already impressive $2.9 billion AI backlog. With Evercore ISI projecting an additional $2.5 billion to $3 billion in revenue for Dell this year, the tech giant is poised to ride the crest of the AI wave.
Although Super Micro Computer currently leads the AI server market with its revenue tripling in the latest quarter, Dell’s robust position in the industry is bound to propel it forward amidst the burgeoning AI boom.
Image source: Getty Images.
Dell’s Future Trajectory
While Dell has remained tight-lipped about the specifics of its collaboration with Tesla, all eyes are eagerly awaiting the revelations as the company prepares to unveil its earnings report on May 30.
Analysts are anticipating a 6.8% revenue surge to $21.66 billion, juxtaposed with a projected decrease in earnings per share from $1.31 to $1.22, reflecting challenges within the PC market.
The looming question remains on the extent of AI-driven demands, particularly emanating from Tesla, which could serve as a catapult for Dell’s stock as investors dissect the forthcoming news beyond the overall financial results.
Investing in Dell Technologies
Before diving headfirst into Dell Technologies stock, investors are advised to tread cautiously and consider all angles.
The Motley Fool Stock Advisor team has recently revealed their handpicked selection of the 10 best stocks for investment opportunities, with Dell Technologies conspicuously absent from the roster. The chosen equities are forecasted to yield substantial returns over the foreseeable future.
Reflecting on the monumental success story of Nvidia, which debuted on the list on April 15, 2005, highlights the potential for exorbitant profits, with an initial investment of $1,000 burgeoning into a staggering $578,143!
With Stock Advisor offering a lucid blueprint for success, providing expert advice on portfolio construction, regular analyst updates, and two fresh stock picks each month, its proven track record speaks volumes, surpassing the S&P 500 returns fourfold since 2002.
Curious to explore the 10 stocks? Click here to find out more.
*Stock Advisor returns as of May 13, 2024