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🗞️ Dell's AI Push
Big Moves Decoded: Intel, Moderna, and more!
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Market Performance
S&P 500: 6,849.09 ⬆️ 0.54%
Nasdaq: 23,365.69 ⬆️ 0.65%
Dow Jones: 47,716.42 ⬆️ 0.61%
Dell’s AI Server Boom
Dell (DELL) just blew past expectations with a Q4 revenue forecast of $31.5 billion—significantly higher than the $27.59 billion analysts were expecting.
The company also raised its AI server shipment expectations for the year to $25 billion, up from $20 billion.
This is significant because Dell is emerging as a key player in the AI infrastructure buildout, sitting right alongside Nvidia as businesses, governments, and neoclouds scramble to acquire AI-optimized servers.
With an AI server backlog of $18.4 billion and $12.3 billion in new orders, demand clearly isn't slowing down.
Dell is carving out its own niche serving big enterprises, government agencies, and neoclouds like CoreWeave.
They've locked in major deals with the U.S. Department of Energy, Abu Dhabi's G42, and even Elon Musk's xAI.
The company expects to ship $9.4 billion worth of AI servers in Q4 alone, and that's before counting the massive GB300 systems deal with Iren for Microsoft.
Dell stock has a Ziggma score of 38 and ranks higher than most peers in terms of valuation.
However, it trails in other metrics such as growth, profitability, and financial health.
Our Takeaway
Dell is positioning itself as the go-to vendor for AI infrastructure outside the hyperscaler ecosystem.
With pricing power in a supply-constrained market and memory chip costs rising, Dell may pass these costs on to customers—but given the unprecedented demand, it has the leverage to do so.
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Market Overview 📈
The S&P 500 closed on Friday with near flat gains as investors wrapped up a shortened post-Thanksgiving trading session with optimism about potential Federal Reserve rate cuts.
The tech-heavy Nasdaq scored its fifth consecutive day of gains, rising 0.65%, while the Dow climbed 289 points.
Market sentiment shifted toward risk-on as traders became increasingly confident—around 80-85%—that the Fed will deliver a quarter-point rate cut in December, marking the central bank's third consecutive cut.
New York Fed President John Williams fueled this optimism last week by indicating that there is room for further adjustment in the federal funds rate.
November proved challenging for tech stocks, with the Nasdaq falling nearly 2% on the month, ending a seven-month winning streak amid doubts about AI profitability.
However, the S&P 500 and Dow managed slight gains for their seventh consecutive winning month, thanks to this week's rally.
For the week, the Dow finished up more than 3%, while both the S&P 500 and Nasdaq jumped nearly 4%.
Small-cap stocks outperformed in November, with the Russell 2000 gaining 0.8% amid losses in the major indices, signaling renewed interest in domestically focused companies.
Stock Moves Deciphered 📈
🚀 Intel Corporation (INTC)
Intel shares surged 10.2% making it the top performer in the S&P 500. The rally was sparked by analyst speculation about a potential partnership with Apple to manufacture its processors.
This news, combined with earlier partnership rumors, fueled significant investor optimism about Intel's foundry business and its future growth trajectory in the competitive semiconductor manufacturing landscape.
💉 Moderna (MRNA)
Moderna's stock climbed 3.88% during broad-based gains across the biotechnology sector.
While no major company-specific catalyst emerged, the positive market sentiment toward biotech and pharmaceutical companies drove the upward movement.
The gains reflected an investor risk-on appetite, as Wall Street rotated into growth-oriented healthcare stocks.
💸 Western Digital Corporation (WDC)
Western Digital shares increased 3.54%, buoyed by optimistic forecasts for memory pricing and robust demand from the AI sector.
Bank of America recently raised its price target on Western Digital, highlighting the company's favorable positioning as AI applications continue to drive demand for storage solutions and high-performance memory products.
Headlines You Can't Miss 👀
📊 Spot silver hit an all-time high on Friday, surging 90% year to date and outpacing gold's 60% gains as investors rotated into risk-off assets.
✈️ Airline stocks rallied as the FAA expected the most Thanksgiving travel in 15 years, with over 360,000 flights, while jet fuel prices fell 14% in the past week.
🛍️ Black Friday online spending projected to rise 8.3% to $11.7 billion, following record Thanksgiving online sales of $6.4 billion, up 5.3% year-over-year.
📈 12 S&P 500 stocks hit all-time highs, including Walmart, General Motors, Broadcom, and Hilton Worldwide, signaling broad-based strength beyond mega-cap tech.
🎯 Retail discounts peaked higher than expected on Thanksgiving, with electronics marked down 28%, clothing 25%, and toys 27%, fueling impulse buying.
Trending Stocks 📊
📊 CME Group (CME)
CME Group ticked higher even as the parent company of the Chicago Mercantile Exchange experienced a cooling issue at CyrusOne data centers, halting trading in U.S. stock index futures early Friday morning.
🚬 Tilray Brands (TLRY)
The cannabis processor and owner of Montauk Brewing slid 21% after announcing a 1-for-10 reverse stock split, effective at the December 2 market open.
Reverse stock splits often signal management's attempt to boost share prices to meet listing requirements or improve perception among institutional investors.
💾 SanDisk (SNDK)
SanDisk shares climbed almost 4% as the maker of flash memory products prepared to enter the S&P 500 on Friday.
The stock, which was spun off from Western Digital last February, benefited from index inclusion buying as passive funds adjusted their portfolios.
What’s Next?
Key market and macro news 👇
🎤 MongoDB (MDB) Earnings: The database software company is scheduled to report its third-quarter earnings, with investors watching for continued growth driven by AI demand and enterprise adoption.
💰 Initial data from Black Friday and Cyber Monday sales will be released, offering a key insight into consumer health and confidence heading into the holiday season.
📊 The S&P Global Final Manufacturing PMI and the ISM Manufacturing PMI are scheduled for release, providing a snapshot of the manufacturing sector's health.
🔨 The U.S. Census Bureau will release data on construction spending, a key indicator of economic activity in the construction sector.
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