Dell Tech

$Dell Tech(DELL.US)

Context:

DELL rallied strongly today as renewed optimism around AI spending lifted the sector. Dell stands out because it provides the hardware and infrastructure needed to run AI workloads, but strong demand alone doesn't justify any price.

My Trade:

I am focused on whether growth can translate into sustainable cash flow. Dell has a meaningful business and generates real cash, but valuation matters after a strong rally. I'd rather see continued execution before assuming the current price is justified.

Takeaway:

AI offers real growth potential, but expectations matter. A good company isn't always a bargain, and one strong session shouldn't drive my conviction.

Taiwan’s 3 big PC motherboard makers plan to raise prices again – 5% to 10% – in the 4th quarter, media report, adding Asustek, Micro-Star (MSI) and Gigabyte all saw shipment momentum rebound due to improving CPU supplies (Intel Arrow Lake and AMD Ryzen 9000) and a recovery in PC client inventory replenishment. The impending price increases, coupled with a double digit increase earlier this year, are expected to lead to a 30% full-year drop in PC motherboard shipments in 2026. $Intel(INTC.US) $AMD(AMD.US) $Dell Tech(DELL.US) $HP(HPQ.US) #Lenovo #Asustek #MSI #Gigabyte

Source: Dan Nystedt

📢 𝐉𝐔𝐒𝐓 𝐈𝐍: Dell Technologies Advances Enterprise Agentic AI from the Deskside to Data Center with NVIDIA - $Dell Tech(DELL.US) $NVIDIA(NVDA.US)

U.S. stocks edged higher (SPX +0.1%, NDX +0.5%) as SPCX’s strong 3Q results eased AI spending concerns, lifting tech ( $SpaceX(SPCX.US) +9%, $NVIDIA(NVDA.US) +1.3%, $Micron Tech(MU.US) +1.9%, $SK Hynix(SKHY.US) +2.6%, $Dell Tech(DELL.US) +4.0%). $Tesla(TSLA.US) rose 1.8% to $380 on Musk’s comments on the SPCX earnings call that separate special committees at TSLA and SPCX were evaluating a potential TSLA-SPCX combination; $Tesla(TSLA.US) and $Meta Platforms(META.US) report after the close. Brent hit $110/bbl, the 10-year yield rose to 5.12%, BTC reached $83.2K, while gold and silver dipped. $Netflix(NFLX.US) -6% pre-mkt after a fourth consecutive quarter of decelerating revenue guide. S&P 2026 EPS estimates stand at $367 (+32% YoY), implying a 21x P/E and 4.8% earnings yield — below Treasuries, echoing the late-1990s dot-com bubble — though treasury yields are likely to fall as the Iran war ends and oil prices retreat. We remain cautious on TSLA given negative long-term earnings revisions, continued commoditization of autonomy, and a stretched 2026 P/E of 230x vs +45% long term expected earnings growth.

$Coreweave(CRWV.US)

Context: let's analyze some of the casualties of last week's AI rout. Nasdaq Composite dropped by 4.5% from the record high just 1 week ago and The PHLX Semiconductor Index (SOX) was worst, falling 11.4% for the same duration. Dell drop ~22% after Barclays downgraded it from Overweight to Equal-Weight and Coreweave the owner of AI datacenters which uses a lot of GPU lost ~25% due to high cost in repaying its debt, both happened last week.

My trade: stay put, but i won't open any new position

Takeaway: Is there light in the tunnel? Yes, if you believe in Jensen Huang who was being interviewed by Bloomberg in Berlin last week, he just brushed this market correction aside asking people to concentrate on the fundamentals instead $NVIDIA(NVDA.US)$Intel(INTC.US)$Netflix(NFLX.US) .

AI financing has been the most expensive for datacenters/neoclouds, nearing 8% weighted average yield.

Iggy’s Journal: Dow Rebounds on Thursday While AI-Linked Shares Lag

Fri 16 Oct 2026 | Morning

The Numbers

Wall Street closed higher on Thursday, after SGX had closed. The Dow ended at 52,177.69 (+556.21, +1.08%), the S&P 500 at 7,744.06 (+25.12, +0.33%) and the Nasdaq at 26,713.03 (+20.16, +0.08%), per AP, the Economic Times and MK News. AP says buyers favoured value and cyclical shares after Wednesday’s sharp drop, while AI-linked shares lagged: Nvidia fell 1.8%, Dell 6.9% and Hewlett Packard Enterprise 7.1%. AP adds that TSMC sounded cautious on 2027 and that investors are looking at the high debt loads these companies carry as borrowing costs rise.

Charles Schwab notes that US wholesale prices rose 0.7% in September, which kept expectations of higher rates in place.

The STI closed at 5,403.50 on Thursday, down 19.83 points or 0.37% (SGX, via Trading Economics). CICT has set 29 October for its third-quarter 2026 business update (AD HOC NEWS).

My Personal Take

The gap between the Dow and the Nasdaq is the number I would read first. One rose 1.08% and the other 0.08%, a full percentage point apart, so the rebound was in value and cyclical shares, not in the AI-linked names. The reason AP gives for the weak AI-linked shares is the part that matters here: investors are asking how much debt a company carries when borrowing costs are higher. A REIT unitholder asks the same question about the trust’s debt. CICT reports on 29 October, and gearing and interest costs are the lines I will read first.

Cheers, Iggy 🦖

Not financial advice. Iggy’s Forensic Compliance Standards apply.

$Alphabet(GOOGL.US) is now discussing deals to extend their memory LTAs through 2035 from KeyBanc channel checks.