Wednesday, November 15

Dell: Capitalizing on The AI Gold Rush

If you read the update to our Adobe strategy yesterday, then you understand how bullish we are on the short-term tailwinds hitting companies that can create AI services for enterprises right now. 

But the main promise of AI for the immediate term is making certain aspects of tech work more efficient. That efficiency is a huge draw for enterprises that are still bracing for a slowdown as we enter the Fed's moment of truth for their attempt at a soft landing.

The AI opportunity has been proven by efficiency beats at companies like Meta and Uber. So, it's possible to make some systems work better and drive more earnings by utilizing AI models. That's why management teams see this moment as a time when the market can genuinely have its cake and eat it too. Large companies are cutting costs and betting on AI investments that will keep growth alive instead of forcing a much more drastic slowdown. 

It's a tough needle to thread, but enough companies are achieving efficiency gains that the market can't ignore it. Therefore, we're seeing a broader and broader cohort of organizations begin to dip into the AI infrastructure market. 

And one of the biggest beneficiaries of this trend moving forward is going to be Dell Technologies ($DELL).  

Dell is already a great long-term hold. After briefly bottoming in March 2020, Dell rocketed up nearly 350% on the back of the work-from-home revolution massively boosting PC sales. Now, Dell has reclaimed and surpassed their 2022 highs thanks to renewed bull sentiment coming from their ability to serve as an AI infrastructure provider. 

Dell already has AI-specific PCs slated for release in 2024, and they are painting a really compelling picture of their place in the AI game. So let's explore how the former king of commercial PCs is kickstarting a new empire.👇

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