In October, prices of DDR5, memory chips used in PCs, created a selling panic for PC suppliers. Shares of Dell Technologies (DELL), Lenovo (LNVGY), and HP Inc. (HPQ) fell. Sentiment abruptly reversed for those firms, especially with Dell.
Dell posted an over 100% revenue increase for AI servers. This more than offset the expected weakness in its PC division. Dell’s Chief Financial Officer said that the company expects to post a record year again in the next fiscal year. AI shipment will account for around $25 billion. This is up by 150% Y/Y. Revenue of $111.7 billion is up by 17% Y/Y.
DELL stock has a good chance of rising further today and beyond.
Autodesk (ADSK) traded above $300 after it posted earnings for Q3. The firm benefited from operating margin and free cash flow exceeding its forecasts. After billings grew by 21% and share buybacks topped 1.2 million shares ($361 million), ADSK stock is attractive.
NetApp (NTAP) might trend higher today. The firm posted Q2 revenue growth of 3% Y/Y, to $1.71 billion. Still, investors may prefer holding a company that has better growth potential.
Zscaler (ZS) could rebound from last week’s sell-off. Although its non-GAAP results looked impressive, it lost $0.07 on a GAAP EPS basis. Still, its annual recurring revenue of over $3.2 billion is up by 25% Y/Y.
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