Potential Upside If Dell AI-Centric PC Guidance Continue To Impress
$Dell Technologies(DELL.US$ is expected to release earnings on 30 May 2024 after the market closes (AMC).
Analysts estimate DELL to post revenue of USD21.61 billion for 2025Q1, up 3.28% Year-On-Year; EPS is estimated to be USD0.52, down 33.76% Year-On-Year.
Dell Expansion Of AI Capabilities -> Competitive Advantage
With recent announcement of an expansion of its AI capabilities with enhanced partnership with $NVIDIA(NVDA.US$ , Dell aim to provide comprehensive AI solutions spanning from data centers to edge computing. With this collaboration, it will help Dell in its rapid adoption and large-scale AI deployment for organizations.
I personally feel that Dell has gained a competitive edge in the lucrative AI sector, by teaming up with Nvidia. Dell stock price has a significant surge after Nvidia’s impressive financial results and market is also optimistic about this Dell and Nvidia partnership.
Dell AI-Powered Computers
Dell has introduced new AI-powered computers, this has marked Dell’s strategic entry with other PC makers into this new category of Windows PCs tailored for artificial intelligence by Microsoft.
Dell has launched their latest AI-centric computers on 20 May 2024, these computers are all powered by $Qualcomm(QCOM.US$ ’s Snapdragon X-series AI processors and feature integrated Neural Processing Units (NPUs) that expedite AI inferencing. Coupled with Microsoft's Copilot functionality, these devices function as semi-autonomous digital assistants, capable of autonomously summarizing documents and drafting memos, among other productivity-enhancing tasks.
But will these news and launches helped investors confidence and sentiment into Dell stock? We can see that Dell technicals is showing an uptrend but will this continue after its earnings report?
Dell Technologies (DELL) Last Reported Earnings
DELL last reported earnings on 29 Feb 2024 after the market close (AMC). DELL shares gained +31.6% the day following the earnings announcement to close at 124.11. Following its earnings release, 89 days ago, DELL stock has drifted +33.8% higher.
From the time it announced earnings, DELL traded in a range between 104.26 and 169.69. The last price (166.08) is closer to the higher end of range.
Implied straddle for upcoming earnings is 11.0%. I am expecting DELL to provide at least 15% price effect upside after its earnings report.
DELL Buying Strength Shows Investors Confidence
If we looked at the MACD chart, it is in a nice upside trend. The demand (buying) strength have been increased steadily one week before and the buying strength have been on-going for more than 2 weeks.
This shows that traders and investors are pretty confident with Dell AI PC strategy, the next focus would be the market acceptance and sales of this new line of PCs.
I would use another indicator to confirm if this upward trend is really forming.
Dell Upwards Trend With Potential BUY Signal Recently
If we looked at the recent stock price movement, there is an ascending wedge, this normally mean that this is a sign of bullish upside moving forward.
If we looked back on how Dell stock price have moved since its last earnings, there have been 2 other BUY signals with an average one to two weeks, so if we looked at the recent BUY signal appearing on 24 May 2024, we could be seeing a nice upside for 1-2 weeks, and then Dell should form another highs.
Summary
If we looked at the confidence and sentiment that Dell have gathered over the last 2 weeks, Dell have a nice upside. There is more upward movement coming from Dell.
I would be looking out for Dell management comment and guidance on their AI-Centric PC strategy, if that continues to impress investors, I believe Dell could continue its upside for longer time.
Appreciate if you could share your thoughts in the comment section whether you think Dell would continue its upside after its earnings with its AI-Centric PC launches.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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