Dell Q3 Earnings: A Rare Dip-Buy Opportunity

Summary:

  • Dell Technologies Inc.’s infrastructure segment grew 34% YoY, driven by AI and cloud demand, with exceptional growth in servers and promising storage business.
  • Despite a 12% stock drop post-Q3 earnings, I see a massive overreaction and added to my position, targeting $140.
  • Dell’s market leadership in AI infrastructure and storage, combined with margin expansion, positions it for significant growth in a $300B market by 2030.
  • Near-term catalysts include Blackwell AI server production ramp-up and an enterprise PC refresh cycle, supported by strong financials and cash flow.

Empty aisle in server room

Erik Isakson

I first bought Dell Technologies Inc. (NYSE:DELL) at $90 back in August 2024. The stock looked cheap, and I was convinced that the boom in AI and data centers would drive serious growth in their infrastructure business. I started


Analyst’s Disclosure: I/we have a beneficial long position in the shares of DELL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


Leave a Reply

Your email address will not be published. Required fields are marked *