Summary
- Dell stock has outperformed Super Micro stock recently, closing the valuation bifurcation between them.
- Dell’s diversified ISG portfolio potentially helps to mitigate margin pressure in AI-optimized servers, underscoring its diversification.
- Dell benefits from core server refresh cycles and increased AI adoption, bolstering investor sentiments about its growth prospects.
- I explain why DELL’s improved AI thesis should lift the market’s confidence in its ability to gain more market share against its rivals. Read on to find out more.
- I am JR research, an opportunistic investor who identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. I run the investing group Ultimate Growth Investing.
Dell: Buyers Have Returned With Conviction
Dell Technologies Inc. (NYSE:DELL) investors have avoided a further battering as DELL’s August 2024 lows held firmly. As a result, dip-buyers have returned to lift the stock’s buying momentum, even as arch-rival Super Micro (SMCI) stock suffers to gain traction. Therefore, the valuation between SMCI and DELL has closed markedly, narrowing the previous valuation bifurcation between the leading competitors in the AI server infrastructure market. Coupled with Super Micro’s recent 10K filing delays, DELL’s relative outperformance against SMCI has been nothing short of breathtaking.
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