Jim Cramer on Netflix and Other Stocks

6. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 88

Dell Technologies Inc. (NYSE:DELL) is known for designing, developing, manufacturing, marketing, and supporting a range of integrated solutions, products, and services. Mad Money’s host said that he likes Dell and said to go with the company’s stock and CEO.

“… Never bet against Michael Dell. I look at that stock every day and think if we didn’t have so many other AI-related semiconductor and hardware names, Dell would be top of my list. Michael Dell is working very closely with Jensen Huang to be able to make it so that if you want to integrate Nvidia into your operation, you go to Michael Dell. I think you should be going to Michael Dell and be a buyer of more stock in Dell.”

In the second quarter of fiscal 2025, Dell (NYSE:DELL) reported remarkable activity in its AI-optimized server orders, totaling $3.2 billion. The strong demand contributed to an ending backlog of $3.8 billion, which points to the company’s capacity to meet future needs.

The Infrastructure Solutions Group (ISG) demonstrated particularly strong performance during this period, achieving a record revenue of $11.6 billion, which was a substantial 38% increase year-over-year. Within the ISG, sales of servers and networking equipment experienced a surge, rising by 80% year over year to reach $7.7 billion.

Scout Investments, Inc. stated the following regarding Dell Technologies Inc. (NYSE:DELL) in its Q2 2024 investor letter:

“Dell Technologies Inc. (NYSE:DELL) was a top contributor despite reporting disappointing first-quarter earnings results, because investors looked through the near-term disappointment and expected strong growth from AI-related servers and personal computers. We expect Dell to participate in the growth of artificial intelligence hardware, especially as enterprises invest more aggressively. We like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”