Jim Cramer’s Thoughts on These 12 Stocks

8. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 63

Praising Dell Technologies Inc.’s (NYSE:DELL) recently reported earnings results, Cramer said:

“You’ll love this. Last Thursday night, Dell Technologies, we all know it reported a set of numbers that confounded Wall Street. I thought it was a good quarter, but the stock still dropped more than 2% on Friday before sinking another 2.9% on Monday… Dell got hit yesterday because the Wall Street Journal reported that the Trump administration is looking to reduce spending with 10 technology providers, including Dell…

I’m a huge fan of Michael Dell for decades, decades. I’ve been bullish on Dell’s stock ever since it returned to the public market in late 2018… I’ve tried to keep my eyes on the prize, which is that AI infrastructure spending, still going strong, and Dell can clean up selling servers as huge companies spend fortunes to build out data centers. So far, though, throughout all the noise of the last 12 months, none of that’s looked at all impaired. The bull thesis was perfectly intact…

Why am I so enthusiastic about the darn quarter? First and foremost, because Dell’s guidance was fantastic. For the current quarter, the company expects revenue of 28.5 to $29.5 billion. Do you know the analysts were only looking for $25.3 billion? That’s insanely better than expected… Focus on the secular growth story, meaning the AI infrastructure story, which hasn’t shown any signs of slowing, and Michael Dell’s certainly a complete believer.

In fact, Dell’s AI-related businesses are on fire. The company said it generated $12.1 billion in AI orders in the quarter, which surpassed the entirety of the company’s shipments in all the previous fiscal year. Wow. They now have a $14.4 billion backlog of AI business. The estimates are a bit shakier for these AI… but according to data from Bloomberg, the analysts were only looking for about $5 billion AI orders and an AI backlog of less than $8 billion. They were dramatically shorter. Things were much better than people thought. In short, Dell’s doing much more, much better than anyone believed, and that’s why their guidance for the current quarter was so strong, and it’s another reason why the stock should be bought…

Putting it all together, Dell deserves a lot more credit for the quarter it reported last week. The bottom line: Their AI business is on fire, and more generally, the company’s on track to grow sales by 8% and earnings by 15% this year despite tariff headwinds and economic uncertainty. At 12 times earnings, that’s enough for me to stay bullish on Dell, waiting for the day that the fundamentals matter again.”

Dell Technologies (NYSE:DELL) designs and sells a variety of technology products that include storage systems, servers, networking gear, computers, and accessories. The company also provides financing and support to help customers upgrade and maintain their IT systems.