Dell Technologies (DELL) Rides on Strong Portfolio, Partner Base

Dell Technologies DELL shares are up 73.5% year to date compared with the Zacks Computer & Technology sector’s rise of 11.8%. The uptick can be attributed to robust demand for AI servers. Its PowerEdge XE9680 AI-optimized server is in high demand.

Dell serves a diverse range of customers that includes the likes of higher education institutions, financial services, healthcare and life services and manufacturing. The company’s healthcare and life services division has been a frontrunner in this regard, further strengthening its market position and driving overall growth.

Building on this momentum, Dell recently collaborated with Northwestern Medicine to leverage AI in transforming patient care through the development and evaluation of a generative multimodal large language model (LLM) for interpreting chest x-rays, streamlining workflows and aiding in clinical-decision making.

The initiative addresses the healthcare provider’s goal to enhance patient care while reducing physician burnout. By harnessing Dell’s advanced infrastructure, including PowerEdge XE9680 servers equipped with NVIDIA H100 Tensor Core GPUs, Quantum-2 InfiniBand networking, PowerScale, PowerFlex, PowerMax and VxRail, Northwestern Medicine was able to design and test innovative workflow solutions efficiently.

Dell Technologies Inc. Price and Consensus


Dell Technologies Inc. Price and Consensus

Dell Technologies Inc. Price and Consensus

Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote


Dell’s Growth Prospects Rides on Expanding Clientele

The latest move is in sync with Dell’s commitment to empowering healthcare institutions with advanced technology to drive significant advancements in medicine and improve patient outcomes.

Expanding partner base that includes the likes of NVIDIA NVDA, CrowdStrike CRWD and Nokia NOK has been a major growth driver.

In March, Dell announced an expanded collaboration with NVIDIA, launching the Dell AI Factory with NVIDIA, an end-to-end AI enterprise solution supported by high-quality data, new GPU models and professional services, aiming to accelerate business transformation through generative AI technologies.

In the fourth quarter of fiscal 2024, Dell also introduced new enterprise data storage advancements to facilitate quick access to data for AI workloads, integrated with NVIDIA DGC Super POD AI infrastructure, leveraging Dell PowerScale systems.

Dell recently announced an extended partnership with CrowdStrike to integrate Dell’s Managed Detection and Response (MDR) services with CrowdStrike’s Falcon XDR platform to defend against complex cyberattacks.

In the fourth quarter, Dell forged a partnership with Nokia to serve as its preferred infrastructure partner, transitioning Nokia AirFrame customers to Dell PowerEdge servers with Dell global services and support while also offering Nokia’s Digital Automation Cloud solution with Dell NativeEdge for enterprises.

This Zacks Rank #2 (Buy) company’s strong portfolio and expanding partner base are expected to drive top-line growth. For the first quarter of fiscal 2025, revenues are expected to be between $21 billion and $22 billion, with the midpoint of $21.5 billion indicating 3% growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for revenues is pegged at $21.75 billion, suggesting growth of 3.96% year over year.

Earnings are expected to be $1.15 per share (+/- 10 cents). The Zacks Consensus Estimate for earnings is pegged at $1.20 per share, moving up by a penny in the past 30 days.

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