Dell Technologies (DELL) is expected to release its fiscal year 2025 third-quarter results on November 26. As the share price is under ongoing buying pressure, investors might take advantage of the recent base formation and grab a long opportunity.
DELL Q3 Earnings Forecast
With a strong portfolio and a growing network of partners, including Advanced Micro Devices AMD, NVIDIA NVDA, Nokia, and Intel INTC, Dell is well-positioned to report strong results in the third fiscal quarter.
With an average of $24.5 billion and an estimate of $24 to $25 billion, Dell anticipates a 10% increase in third-quarter revenues. Earnings are expected to be $2 per share, plus or minus 10 cents.
The consensus estimate for earnings per quarter is $2.05 per share, which has remained constant over the last 60 days and indicates a 9.04% year-over-year increase.
DELL Growth Factors
It is anticipated that the strong demand for servers with AI optimization helped Dell's third-quarter fiscal results. With shipments reaching $3.1 billion in the second fiscal quarter, demand for AI-optimized servers climbed to $3.2 billion, up 23% repeatedly.
Nonetheless, the fiscal second quarter's flat commercial operations client earnings and falling customer revenues show waning demand across several important segments.
Due to ongoing consumer demand issues and increased competition, DELL's top-line revenue expansion in the to-be-reported period is anticipated to have been negatively impacted by slow PC deliveries in the customer segment.
The launch of Dell AI Factory has been a major driving force. It integrates Dell's AI workload-optimized products and services with an open ecosystem of collaborators that includes Hugging Face, Microsoft, NVIDIA, and Meta Platforms.
NVIDIA has been a key contributor to the creation of the Dell artificial intelligence (AI) Factory. Through the partnership, the AI Enterprise software stack of NVIDIA and Tensor Core GPUs is integrated with Dell's portfolio, increasing compute worth and streamlining the development and installation of AI applications for a quicker time to value.
Dell Collaboration: A Stable Business
To help communication service companies with their cloud transformation adventures, Ericsson and Dell are working together to create customized cloud computing system plans. Notable is the commercial launch of Ericsson Cloud RAN software, which will involve ongoing testing and management of life cycles on Dell PowerEdge servers.
Dell and Nutanix recently collaborated to integrate the Nutanix Cloud Platform alongside Dell's storage and server solutions, accelerating digital transformation. This seeks to facilitate independent storage, compute scaling, and simplified blended multi-cloud installations.
Additionally, Dell has a strong portfolio of IP core options for storage, including PowerStore, PowerMax, PowerScale, and PowerProtect Data Domain, all of which are in high demand.
Dell Stock Forecast Technical Analysis
In the daily chart of DELL stock price, the ongoing market momentum is bullish, where the current price is aimed higher within a rising channel. Moreover, the recent price showed a bullish rally-base-rally formation, which indicates a bullish confluence signal.
In the broader context, the bullish trend is potent as the Moving Average wave consists of MA 150 to 250, which is below the current Dell Technologies stock price, working as a major support. Moreover, the high volume level since May 2024 is within the latest base, signaling a bullish order building.
Based on the current market outlook, immediate bullish pressure is potent as long as the high volume line is below the current Dell stock price. In that case, the price is likely to rise and find resistance from the 161.38 to 178.83 zone.
On the other hand, the ongoing channel formation left significant sell-side liquidity below the channel support. In that case, immediate selling pressure is potent from the channel breakout, which could move down towards the 117.00 to 101.00 zone before forming a bullish reversal.
