Charles Edwards
Founder of Capriole Investments, Digital-Asset Investing
Dell is still cheap after its earnings jump, growing cash at an insane rate on a low multiple. Q1 EPS rose 280%, and on Q1 earnings of $3.44 billion, with revenue tracking $167 billion for 2027, it trades at about 21x even after a 40% one-day gain. Only about half its shares float, making the effective P/E about 10.5. Share count has fallen about 4.7% a year, record free cash flow comes with a mandate to return 80% to shareholders, and the AI business is growing 760% a year. x.com
Dell ranks among the best on buybacks and low stock-based compensation, with strong expansion in both profit margin and revenue. x.com
Dell is still too cheap after a jaw-dropping quarter. The stock trades at about 10x earnings despite 23% revenue growth, a guide for 25% growth in fiscal 2027 and a 20% dividend increase, so it should not stay at these levels for long. x.com
Dell looks overvalued, trading about seven turns above its historical multiple range and at a premium to many AI semiconductor bottleneck names despite not providing a bottleneck solution. Michael Dell spiking the ball on the latest quarter might mark the top. x.com
Dell should easily trade above $500 after a very strong Q2 FY27 report. Revenue rose about 58% to roughly $47B, AI server backlog hit a record of about $95B, FY27 revenue guidance rose by about $25B, and management now expects AI server revenue to triple this year rather than double. That the stock sat at morning lows after such results says a lot about the current state of the AI trade. x.com x.com
Dell has broken through $500 and now targets all-time highs. x.com
Dell is heavily overearning heading into a two-sigma melt-up, leaving the stock exposed to a reversal. x.com
Dell is one of the biggest beneficiaries of the CPU shortage, gaining share in AI servers, traditional servers, storage and PCs as demand accelerates well past supply. AI server revenue rose 757% to $16.1B with a record $51.3B backlog, and traditional servers grew 92% as agentic AI needs CPUs to run the work around GPUs. Full-year revenue guidance rose about $27B to a $167B midpoint and EPS guidance to $17.90, a rare raise. Before the earnings jump it traded at only about 22x forward earnings. … Show more
Dell's AI server demand looks durable enough to push the stock to new all-time highs. First-quarter revenue rose 88% to $43.8B against a $35.5B estimate, with AI server revenue of $16.1B. FY27 guidance calls for $165-169B of revenue and $60B of AI server revenue, and management said demand will last through year-end without pull-forward from the second half. Estimates should rise sharply, and 7.2% short interest adds fuel. At 27x 2027 earnings Dell is no longer cheap. x.com x.com
Dell is still a hardware company with low pricing power and only an 18% margin profile, which the FOMO chasers now piling in overlook. The stock may still go higher. x.com
Dell shows companies can no longer be judged by headcount, as automation and AI let it grow with far fewer people. Its workforce fell from 140,000 to 108,000 at the end of 2025 and 85,000 now, with a target of just 65,000, while revenue and margins rise. x.com
