Did Jim Cramer Get These 23 Stocks Right?

17. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 63

Jim Cramer mentioned Dell Technologies Inc. (NYSE:DELL) as one of the companies that had a lot of benefits to gain from its partnership with Nvidia at the time. He said:

“Jensen regards Dell as a crucial partner when it comes to installing Nvidia systems everywhere. […] I didn’t know they were so close until Dell’s most recent completely blowout quarter. I think Dell’s got more room to run.”

Cramer’s thesis didn’t pan out, with Dell Technologies Inc. (NYSE:DELL) dropping by 14.69% since the episode aired.

On the 14^th of March, Jim Cramer mentioned some reasons behind the unimpressive stock performance of Dell Technologies Inc (NYSE:DELL).

“Dell Technologies, the iconic maker of personal computers, servers, and storage equipment that I’ve liked for a very long time, has gone from one of the big winners of the AI infrastructure story to a name that just can’t seem to catch a bid, as investors have turned against anything AI-related. Dell servers are the way that many enterprise customers actually get access to NVIDIA’s fancy chips, and their storage products are used in many AI infrastructure stacks. On top of the hardware, the company has a consulting business that basically tells customers what they need as they build out their AI infrastructure. That’s why the stock rallied 90% in 2023 and more than doubled in the first five months of last year, charging all the way up to 180 in last May. Those were house-young times. Since then, though, the stock of this amazing company has been acting terribly. It’s essentially been cut in half, falling back to the low 90s today. Now, initially, there was a period of choppy trading last summer, and after a couple of mixed quarters, well, you know what? That’s what happened. When I covered the stock last September at 110, I told you it was still worth owning. Sure enough, the stock then rebounded to $147 and change in late November. Since then, though, the stock’s really rolled over again, and it’s been trading—well, let’s say it’s been trending lower, how about that? Some of it has to do with the belief that no one’s going to make any money off of AI except Nvidia.”