A series of events drove Dell's price to surprising heights, and LevelFields members profited
On Sept. 1, 2023, our Analysts sent the Alert below to Level 2 Members:
Shares of DELL are on the rise, following multiple event catalysts including an earnings beat of 60 cents per share, with the company reporting EPS of $1.74 and projections for the full year at $6.30 per share. Revenue also surpassed expectations by about $2 billion for the quarter.
This is a comeback story, rooted in its recent partnership with Nvidia to build servers to feed the soaring demand for servers being created by the rollout of AI across the globe. Dell will use Nvidia chips in its servers.
Analyst, CNBC, and Barron's are all touting the stock as a surprising part of critical AI infrastructure and that is sure to get the attention of investors. The stock, unlike Nvidia and other AI ecosystem components, is fairly valued at a forward P/E of about 10 (as of the time of writing this). We see the stock rising to at least $70 a share on these catalysts, and some analysts are projecting DELL will be included in the S&P 500 index in the near term - which would add another catalyst.
DELL rose from $56 to $70 a share a few days later. It traded sideways until 2024.
The next event catalysts March 1, 2024 - being added to the S&P 500 and another earnings beat - drove the stock another leg up from $90 $124/share.
A long position entered on our alert would have resulted in 90% gains.
