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KeyBanc Starts Coverage of Dell Technologies (DELL) Stock, Gives Sector Weight Rating
KeyBanc Starts Coverage of Dell Technologies (DELL) Stock, Gives Sector Weight Rating

Yahoo

time2 days ago

  • Business
  • Yahoo

KeyBanc Starts Coverage of Dell Technologies (DELL) Stock, Gives Sector Weight Rating

Dell Technologies Inc. (NYSE:DELL) is one of the Top 10 AI and Technology Stocks to Buy According to Analysts. On June 26, KeyBanc began coverage of the company's stock with a 'Sector Weight' rating, as reported by The Fly. As per the firm, Dell Technologies Inc. (NYSE:DELL) has executed well and there remains a strong revenue growth profile, operating efficiency, and ultimately a robust FCF/capital return profile. That being said, the firm opines that the revenue growth is being aided by lower margin AI Servers, where the firm expects gross margin pressure to continue. A team of IT experts discussing the latest network security trends over a laptop screen. Furthermore, the firm remains more skeptical of the magnitude of the PC refresh cycle, concluding that Dell Technologies Inc. (NYSE:DELL) is fairly valued at the current juncture. In Q1 2026, the company saw record servers and networking revenue of $6.3 billion, and it continues to experience healthy demand for its AI-optimized servers. Dell Technologies Inc. (NYSE:DELL) generated $12.1 billion in AI orders in Q1 2026 alone, exceeding the entirety of shipments in all of FY 2025 and leaving the company with a backlog to the tune of $14.4 billion. For FY 2026, the company expects revenue of between $101.0 billion – $105.0 billion, reflecting a rise of 8% YoY at the midpoint of $103.0 billion. Dell Technologies Inc. (NYSE:DELL) plays a critical role in offering the hardware infrastructure and solutions critical for AI workloads, data centers, enterprise IT systems, and cloud computing. While we acknowledge the potential of DELL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds' investor letters by entering your email address below.

Wells Fargo Signs a Deal to Sell its $4.4 Billion Rail Asset Portfolio
Wells Fargo Signs a Deal to Sell its $4.4 Billion Rail Asset Portfolio

Yahoo

time31-05-2025

  • Business
  • Yahoo

Wells Fargo Signs a Deal to Sell its $4.4 Billion Rail Asset Portfolio

The $4.4 billion rail equipment leasing division of Wells Fargo & Company (NYSE:WFC) will be sold to a joint venture between Brookfield Infrastructure and GATX Corporation. A team of bankers in suits, discussing the success of the company's banking products. The agreement covers the whole rail operating lease portfolio, which consists of about 105,000 railcars, as well as the rail finance leasing portfolio, which consists of 440 locomotives and 23,000 railcars. According to Wells Fargo & Company (NYSE:WFC), the deal fits with its plan to streamline operations and will not have a significant effect on its financials. Brookfield Infrastructure will own 70% of the business, with the possibility that GATX Corporation may eventually acquire the entire company. GATX Corporation will oversee operations and initially hold a 30% stake in the business. It's anticipated that the deal will close by Q1 2026. David Marks, executive vice president, Wells Fargo & Company (NYSE:WFC) Commercial Banking, commented: "This transaction is consistent with Wells Fargo's ongoing strategy of simplifying our businesses and focusing on products and services that are core to our clients," GATX Corporation acquires operational control, strengthening Brookfield Infrastructure's capital depth and its freight transport infrastructure network. While we acknowledge the potential of WFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WFC and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Is a New All-Time High Next for Nvidia Stock After Yet Another Earnings Beat?
Is a New All-Time High Next for Nvidia Stock After Yet Another Earnings Beat?

Globe and Mail

time29-05-2025

  • Business
  • Globe and Mail

Is a New All-Time High Next for Nvidia Stock After Yet Another Earnings Beat?

Nvidia (NVDA) released its fiscal Q1 2026 earnings yesterday, and it was yet another beat from the Jensen Huang-led company. When it comes to Nvidia, the discussion is usually not about whether the company will beat consensus estimates, but by what margin. Nvidia reported revenue of $44.06 billion in the quarter, which was up 69% year-over-year and ahead of the $43.31 billion that analysts expected. The number was also higher than the upper end of the company's guidance. While the margin of the beat is not particularly extraordinary, considering what the company has presented to investors over the last two years, it is nonetheless noteworthy, as it came amid China headwinds. For context, President Donald Trump's administration imposed export control restrictions on Nvidia's H20 chips during the quarter, which impacted its sales and prompted the company to book a charge of $4.5 billion in the quarter. Nvidia's Q2 Guidance Trails Estimates Nvidia said that if not for these restrictions, it would have been able to ship an additional $2.5 billion in revenue from these chips. The company expects the hit to be a mammoth $8 billion in the current quarter. Despite the headwind, it forecast revenues of $45 billion at midpoint for the current quarter, which is 50% higher than what the company reported in the corresponding quarter last year. Nvidia's guidance fell short of the $45.9 billion that analysts were expecting, but it should be seen in the context of the loss of China business. If not for the export control restrictions, Nvidia would have guided for year-over-year revenue growth of over 76% for the current quarter, which is actually much higher than what the markets were modelling before the export control restrictions. Export Restrictions Put Nvidia at a Disadvantage in China Meanwhile, Huang was quite measured in his criticism of Trump's export control restrictions. Huang, who previously said that the chip export restrictions were a 'failure,' warned, 'Shielding Chinese chip makers from U.S. competition only strengthens them abroad and weakens America's position. Export restrictions have spurred China's innovation and scale.' While he rued the fact that Nvidia has been effectively shut out of the $50 billion artificial intelligence (AI) chip market in China, he praised Trump's 'bold vision to reshore advanced manufacturing, create jobs and strengthen national security.' He also lauded Trump's removal of Biden-era 'AI Diffusion Rules,' which put limits on chip exports. Referring to the AI deals during Trump's recent visit to the Middle East, where he was among the business leaders who accompanied the president, Huang said, 'The deals he announced are wins for America, creating jobs, advancing infrastructure, generating tax revenue, and reducing the U.S. trade deficit.' Nvidia's Non-China Business Is Doing Quite Well While China was the focal point of Nvidia's fiscal Q1 earnings call and the words 'China' and 'Chinese' were mentioned 29 times, for me, the key takeaway from the call was that the company's non-China business is doing incredibly well. The recent earnings calls of other Big Tech companies, which include the so-called hyperscalers, showed that companies are not slowing down their AI capex. If anything, Meta Platforms (META) raised its capex budget while Microsoft (MSFT) stressed that not much should be read into its canceling of some data center leases. What's Next for Nvidia Stock After Earnings While Nvidia's China business remains challenged, strong growth in other markets helped Nvidia offset the revenue loss in the world's second-largest economy. There is strong growth in other international markets, and Huang, who will be in Europe next week, sees sovereign AI as a key growth driver and has plans to meet several 'heads of state.' Overall, Nvidia's earnings report was stellar and is yet another testament to the fact that we are still in the early days of the AI cycle. While so far, U.S. tech giants have helped spur the demand for Nvidia's chips, going forward, demand from global companies as well as governments could help drive demand. While NVDA stock is up just about 5% so far today, I expect the chip-designing giant to push toward its all-time highs sooner rather than later.

Citi Maintains a Hold Rating on Salesforce (CRM), Cuts PT
Citi Maintains a Hold Rating on Salesforce (CRM), Cuts PT

Yahoo

time26-05-2025

  • Business
  • Yahoo

Citi Maintains a Hold Rating on Salesforce (CRM), Cuts PT

In a report released on May 23, Tyler Radke from Citi maintained a Hold rating on Salesforce, Inc. (NYSE:CRM) and lowered its price target to $320 from $335. The rating comes ahead of the company's Q1 2026 earnings release on May 28. A customer service team in an office setting using the company's Customer 360 platform to communicate with customers. The analyst reasoned that the overall demand for the company's offerings is showing mixed signals. While interest in Agentforce, the company's agentic AI platform, is strong, the analyst said its current impact is limited. The core CRM demand suggests variability, as some areas are undergoing a decline while others grow. This can be seen in Salesforce, Inc.'s (NYSE:CRM) fiscal Q4 2025 results, where it surpassed EPS but fell short of revenue. It reported an EPS of $2.78 adjusted compared to the expected $2.61, while revenue was $9.99 billion compared to the expected $10.04 billion. The analyst also said that the company is focusing on enhancing transparency and simplifying pricing. However, the effects of these initiatives are yet to materialize. Radke expects revenue growth for Salesforce, Inc. (NYSE:CRM) to remain in the high-single-digits. The top-of-funnel demand and overall engagement, however, appears weaker to him. He is thus looking for more substantial data on commercialization and wider rollouts before adopting a more optimistic sentiment for the stock and its growth prospects. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Citi Maintains a Hold Rating on Salesforce (CRM), Cuts PT
Citi Maintains a Hold Rating on Salesforce (CRM), Cuts PT

Yahoo

time25-05-2025

  • Business
  • Yahoo

Citi Maintains a Hold Rating on Salesforce (CRM), Cuts PT

In a report released on May 23, Tyler Radke from Citi maintained a Hold rating on Salesforce, Inc. (NYSE:CRM) and lowered its price target to $320 from $335. The rating comes ahead of the company's Q1 2026 earnings release on May 28. A customer service team in an office setting using the company's Customer 360 platform to communicate with customers. The analyst reasoned that the overall demand for the company's offerings is showing mixed signals. While interest in Agentforce, the company's agentic AI platform, is strong, the analyst said its current impact is limited. The core CRM demand suggests variability, as some areas are undergoing a decline while others grow. This can be seen in Salesforce, Inc.'s (NYSE:CRM) fiscal Q4 2025 results, where it surpassed EPS but fell short of revenue. It reported an EPS of $2.78 adjusted compared to the expected $2.61, while revenue was $9.99 billion compared to the expected $10.04 billion. The analyst also said that the company is focusing on enhancing transparency and simplifying pricing. However, the effects of these initiatives are yet to materialize. Radke expects revenue growth for Salesforce, Inc. (NYSE:CRM) to remain in the high-single-digits. The top-of-funnel demand and overall engagement, however, appears weaker to him. He is thus looking for more substantial data on commercialization and wider rollouts before adopting a more optimistic sentiment for the stock and its growth prospects. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Sign in to access your portfolio

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