Dell Technologies DELL is flying high like a rocket – its shares have soared 73.5% year to date. In contrast, the Zacks Computer & Technology sector has managed a paltry 11.8% rise. The star of the show? The insatiable demand for AI servers, particularly the coveted PowerEdge XE9680 AI-optimized server.
Dell caters to a wide variety of clientele, from higher education to finance, healthcare, and manufacturing. Notably, its healthcare and life services arm has excelled, solidifying its market stance and fueling overall expansion.
Recently, Dell partnered with Northwestern Medicine to revolutionize patient care using AI. This collaboration pioneers a large language model (LLM) for interpreting chest x-rays, all in the pursuit of seamless workflows and informed clinical decisions.
This groundbreaking effort aims to not only improve patient outcomes but also reduce medical practitioner burnout. By leveraging Dell’s cutting-edge infrastructure – featuring NVIDIA H100 Tensor Core GPUs, Quantum-2 InfiniBand networking, and an array of other technologies – Northwestern Medicine designed and tested innovative workflow solutions with unprecedented efficiency.
The Meteoric Rise of Dell Technologies Inc.
Chart: Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
The Future Shines Bright for Dell: Expanding Horizons
Dell’s growth prospects are as vibrant as the hues of a sunrise, driven by an expanding clientele base and strategic partnerships.
In a recent move, Dell reaffirmed its commitment to empowering healthcare institutions by collaborating with advanced technology partners to push the boundaries of medical advancements and enhance patient outcomes.
The company’s partnership circle, which includes tech giants like NVIDIA NVDA, CrowdStrike CRWD, and Nokia NOK, has been a key growth catalyst.
In a strategic move, Dell joined hands with NVIDIA to launch the Dell AI Factory, an end-to-end AI enterprise solution powered by high-quality data and professional services. This collaboration aims to drive business transformation through cutting-edge generative Ai technologies.
Further solidifying its position in the market, Dell introduced new enterprise data storage advancements in the last quarter of fiscal 2024. This move enables rapid data access for AI workloads, integrated with NVIDIA DGC Super POD AI infrastructure, leveraging Dell PowerScale systems.
Another feather in Dell’s cap is its extended collaboration with CrowdStrike to combat sophisticated cyberattacks by integrating Dell’s Managed Detection and Response (MDR) services with CrowdStrike’s Falcon XDR platform.
In a forward-thinking move, Dell partnered with Nokia to become its preferred infrastructure partner, transitioning Nokia AirFrame customers to Dell PowerEdge servers. This strategic alliance, coupled with Dell’s NativeEdge for enterprises, offers a potent Digital Automation Cloud solution from Nokia.
This Zacks Rank #2 (Buy) company’s strong portfolio and burgeoning partner base are projected to fuel top-line growth. For the first quarter of fiscal 2025, revenues are estimated to range between $21 billion and $22 billion, with the midpoint of $21.5 billion signaling a notable 3% growth. It’s evident that Dell is on the cusp of greatness.
The Zacks Consensus Estimate for revenues sits at $21.75 billion, suggesting a healthy growth of 3.96% year over year.
Earnings are anticipated to reach $1.15 per share (+/- 10 cents). The Zacks Consensus Estimate for earnings stands at a solid $1.20 per share, reflecting a one-cent uptick over the past 30 days.
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