Keep an eye on oversold shares of Dell (SYM: DELL).
After gapping from $180 to $132 on earnings, analysts are saying to buy the dip on Dell’s AI story. Bank of America, for example just said: “We reiterate Buy given that we are still in the early stages of AI adoption with continued strong pipeline and momentum around AI servers, where we think DELL will be able to capture higher AI margins over time (increased mix of Enterprise vs. CSP, and increased attach of Storage, Services).”
Morgan Stanley also said:
“We’re buyers of the dip as the near-term [Infrastructure Solutions Group] profitability disappointment is more than offset by building AI ecosystem momentum. Said differently, tonight’s near-term speed bump does little to derail our thesis that DELL will remain an AI infrastructure beneficiary and generate $10-12 of EPS next year, and we see multiple upcoming soft and hard catalysts that can help drive further outperformance.”
