Dell's AI Gambit: A Quantum of Solace for Investors?

The Name's Bond AI Bond

Right let's cut to the chase. Dell yes the fellows who make those rather ubiquitous computers are making waves. Word on the street or rather on the trading floor is that their shares have jumped. Seems they've got their algorithms in a twist – a good twist mind you – thanks to a hefty dose of Artificial Intelligence. Q would be proud though he'd probably want to upgrade their systems with a few… 'modifications'.

Shaken Not Stirred Earnings

Now before we start popping champagne corks there's a slight wrinkle. They predicted their adjusted earnings per share $1.69 but scored $1.55. A bit like missing a target by a hair but hardly time to panic. Revenue did exceed expectations at $23.38 billion so it's not all doom and gloom. More like a 'Live and Let Die' situation – a few bumps but overall still kicking.

A View to a Kill...er Forecast

Dell's crystal ball reveals a rather rosy picture. They're expecting $2.25 in adjusted earnings per share for the current quarter with revenue soaring between $28.5 billion and $29.5 billion. That's more than enough to buy a few Aston Martins or perhaps invest in a new submersible Lotus. Apparently it's all thanks to a projected $7 billion in AI systems which are more profitable than your average gizmo.

The World Is Not Enough...AI Demand

The whispers I'm hearing suggest that Dell is riding the wave of 'unprecedented demand' for AI systems. Everyone wants a piece of the pie especially those second tier cloud providers. Dell's got a hefty $14.4 billion in confirmed orders for these brainy machines. Makes you wonder what secrets they'll uncover or more importantly who will try to steal them.

From Russia With...Servers

Their server business is booming contributing a healthy $10.3 billion to the kitty. The laptop and PC business is also on the upswing. It appears the world hasn't quite given up on keyboards and screens despite all the shiny new gadgets. Perhaps there's still hope for humanity after all.

Diamonds Are Forever...or Share Repurchases

And just to keep the shareholders happy Dell's been throwing around some serious cash – $2.4 billion on share repurchases and dividends. A bit like throwing a bone to a loyal dog but in this case the dog is a multinational corporation. Still can't complain about a bit of extra folding stuff in one's pockets can we?