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DELL's Expanding Generative AI Portfolio to Aid Prospects
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Dell Technologies (DELL - Free Report) is having a remarkable 2023, with shares up 64.6% year to date, driven by an expanding footprint in the field of artificial intelligence (AI).
The company is expanding its Generative AI solutions portfolio, which is expected to accelerate top-line growth.
In partnerships with NVIDIA (NVDA - Free Report) and Starburst, Dell is poised to provide businesses with the tools and services needed to unlock the full potential of AI. This comprehensive approach is set to propel businesses on their AI journey, from data preparation and model customization to modernizing data infrastructure, delivering faster and more efficient results.
Dell’s latest solution the Dell Validated Design for Generative AI with NVIDIA for Model Customization offers pre-trained models that extract intelligence from data sparing enterprises from building models from scratch.
Dell Validated Designs for Generative AI now supports both model tuning and inferencing. The solution is supported by the Dell PowerEdge XE9680 AI server or the Dell PowerEdge XE8640, with a choice of NVIDIA Tensor Core GPUs and NVIDIA AI Enterprise software, which offers frameworks, pre-trained models and development tools, such as the NVIDIA NeMo framework and Dell software.
Dell also offers storage options like PowerScale and ObjectScale, which help customers rapidly feed models with multiple storage data types with the validated design. The infrastructure is also available as a subscription via Dell APEX.
The Dell-Starburst partnership will help customers accelerate AI and analytics efforts driven by an open, modern data lakehouse solution. The solution will be available in the first half of 2024.
Dell is offering its expanded GenAI professional services capabilities to customers, which will help generate better and faster business results. These services will be available in select countries starting in late October.
Expanding Portfolio to Aid Prospect
Dell’s shares have outperformed the Zacks Computer and Technology sector, which has returned 33.8% year to date. The outperformance can be attributed to the company’s expanding AI portfolio and strong partner base.
During the fiscal third quarter, Dell continued to see APEX momentum, with a strong double-digit percentage increase in the number of new APEX customers subscribing to as-a-service solutions, with a particular emphasis on Data Center Utility and Flex on Demand offerings.
Dell recently updated its long-term strategy. It now targets 3%-4% annual revenue growth, 8% or higher non-GAAP earnings growth, and 100% or more net income to free cash flow conversion. The company is adding $5 billion to share repurchase authorization and achieves a 10% or greater annual dividend increase through fiscal 2028.
For the third quarter of fiscal 2024, DELL expects total revenues between $22.5 million and $23.5 billion with a midpoint of $23 billion.
The Zacks Consensus Estimate for the third quarter is currently pegged at $22.94 billion, indicating a year-over-year decline of 7.22%.
Zacks Rank & Other Stocks to Consider
Currently, DELL sports a Zacks Rank #1 (Strong Buy).
Image: Bigstock
DELL's Expanding Generative AI Portfolio to Aid Prospects
Dell Technologies (DELL - Free Report) is having a remarkable 2023, with shares up 64.6% year to date, driven by an expanding footprint in the field of artificial intelligence (AI).
The company is expanding its Generative AI solutions portfolio, which is expected to accelerate top-line growth.
In partnerships with NVIDIA (NVDA - Free Report) and Starburst, Dell is poised to provide businesses with the tools and services needed to unlock the full potential of AI. This comprehensive approach is set to propel businesses on their AI journey, from data preparation and model customization to modernizing data infrastructure, delivering faster and more efficient results.
Dell’s latest solution the Dell Validated Design for Generative AI with NVIDIA for Model Customization offers pre-trained models that extract intelligence from data sparing enterprises from building models from scratch.
Dell Validated Designs for Generative AI now supports both model tuning and inferencing. The solution is supported by the Dell PowerEdge XE9680 AI server or the Dell PowerEdge XE8640, with a choice of NVIDIA Tensor Core GPUs and NVIDIA AI Enterprise software, which offers frameworks, pre-trained models and development tools, such as the NVIDIA NeMo framework and Dell software.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
Dell also offers storage options like PowerScale and ObjectScale, which help customers rapidly feed models with multiple storage data types with the validated design. The infrastructure is also available as a subscription via Dell APEX.
The Dell-Starburst partnership will help customers accelerate AI and analytics efforts driven by an open, modern data lakehouse solution. The solution will be available in the first half of 2024.
Dell is offering its expanded GenAI professional services capabilities to customers, which will help generate better and faster business results. These services will be available in select countries starting in late October.
Expanding Portfolio to Aid Prospect
Dell’s shares have outperformed the Zacks Computer and Technology sector, which has returned 33.8% year to date. The outperformance can be attributed to the company’s expanding AI portfolio and strong partner base.
During the fiscal third quarter, Dell continued to see APEX momentum, with a strong double-digit percentage increase in the number of new APEX customers subscribing to as-a-service solutions, with a particular emphasis on Data Center Utility and Flex on Demand offerings.
Dell recently updated its long-term strategy. It now targets 3%-4% annual revenue growth, 8% or higher non-GAAP earnings growth, and 100% or more net income to free cash flow conversion. The company is adding $5 billion to share repurchase authorization and achieves a 10% or greater annual dividend increase through fiscal 2028.
For the third quarter of fiscal 2024, DELL expects total revenues between $22.5 million and $23.5 billion with a midpoint of $23 billion.
The Zacks Consensus Estimate for the third quarter is currently pegged at $22.94 billion, indicating a year-over-year decline of 7.22%.
Zacks Rank & Other Stocks to Consider
Currently, DELL sports a Zacks Rank #1 (Strong Buy).
Splunk and Synopsys (SNPS - Free Report) are some other top-ranked stocks that investors can consider in the broader sector. You can see the complete list of today’s Zacks #1 Rank stocks here.
SPLK and SNPS shares have returned 70.7% and 44.1%, respectively, year-to-date.
Long-term earnings growth rates for Splunk and Synopsys are pegged at 29.55% and 16.39%, respectively.