March 2024 Archive - Mad Hedge Fund Trader

Dell Shares Surge on AI Wave: What Investors Need to Know

Shares of Dell Technologies (DELL) are experiencing a significant upswing today, fueled by growing investor enthusiasm surrounding the company's potential role in the burgeoning artificial intelligence (AI) landscape. AI's transformative power across industries has made it a hotbed of investment, and Dell's strategic positioning is placing it squarely in the spotlight.

Understanding the AI Boom

Artificial intelligence is rapidly moving from science fiction to real-world applications. AI technologies like machine learning, natural language processing, and computer vision are revolutionizing sectors from healthcare and finance to manufacturing and customer service. The ability of AI systems to process vast amounts of data, identify patterns, and make predictions is driving unprecedented efficiencies and innovation.

Dell's AI Advantage

Dell Technologies boasts a robust portfolio of products and services that position it as a key player in the AI revolution. These advantages include:

Powerful Computing Infrastructure: Dell's servers, storage solutions, and networking equipment provide the essential backbone for AI development and deployment. AI workloads demand high-performance computing capabilities, and Dell delivers the scalable infrastructure needed to train and run complex AI models.
Data Management Expertise: AI is fundamentally fueled by data. Dell's expertise in data storage, management, and analytics ensures that organizations have the tools to collect, organize, and effectively leverage their data assets to power AI initiatives.
Strategic Partnerships: Dell has forged strategic alliances with leading AI software providers, including VMware and NVIDIA. These partnerships allow Dell to offer integrated AI solutions, giving customers access to cutting-edge AI technologies bundled with reliable hardware.
AI-Specific Solutions: Dell is developing an array of solutions tailored specifically for AI use cases. This includes specialized hardware configurations optimized for machine learning workloads, as well as software platforms that simplify AI implementation and management.

The Investment Case for Dell

The surging interest in Dell stock reflects a growing recognition of the company's potential to capitalize on the AI boom. Here's why investors are bullish on Dell:

Market Growth: The global AI market is projected to reach trillions of dollars in the coming years. As a foundational enabler of AI, Dell stands to benefit significantly from this explosive growth.
Revenue Diversification: Dell's focus on AI offers an opportunity to diversify its revenue streams beyond its traditional PC and hardware businesses. As AI becomes more pervasive, Dell's AI-related solutions are likely to become a major growth driver.
Competitive Edge: Dell's comprehensive portfolio, partnerships, and AI-specific initiatives give it a competitive advantage in the increasingly crowded AI solutions market.

Risks and Considerations

While the outlook for Dell's AI-driven growth is positive, investors should also be aware of potential risks and challenges:

Competition: The AI market is attracting major players, including cloud giants like Amazon, Microsoft, and Google. Dell will need to continuously innovate to maintain its competitive position.
Dependence on Chipmakers: Dell relies on chipmakers like Intel and NVIDIA for critical components. Supply chain disruptions or technological setbacks in chip development could impact Dell's ability to deliver AI-optimized hardware.
Economic Uncertainty: A broader economic downturn could dampen demand for enterprise technology investments, including AI solutions.

The Bottom Line

Dell's strategic investments in AI are paying off as investor sentiment shifts toward companies with strong AI exposure. While not without risks, Dell's comprehensive approach to AI solutions positions it well to ride the AI wave and deliver long-term value to shareholders. Investors interested in AI's transformative potential should keep a close eye on Dell's developments in this space.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please conduct your own thorough research before making any investment decisions.

March 1, 2024

Tech Letter

Mad Hedge Technology Letter
March 1, 2024
Fiat Lux

Featured Trade:

(ROBOT-AS-A-SERVICE)
(ROK), (TER), (ZBRA), (NVDA)

Robot-As-A-Service

Tech Letter

We need to look to the future to better understand what is next after software-as-a-service (SaaS).

Technology never keeps still and evolves.

Even giant Google who invest countless numbers of dollars and man-hours into AI are facing short-term pressure on their AI trajectory.

I do believe the next iteration and extension of technology services will be accretive to the tech ecosystem and help boost stock shares and that piece of technology will come in the form of Robotics-as-a-Service (RaaS).

The RaaS market size is expected to grow by US$8.23 billion from 2024 to 2030 at 34.12%.

Like a number of other shared services, RaaS is becoming increasingly popular due to its convenience and flexibility, as well as being cost-effective and easy to implement.

Remember that human workers get sick, like to take days off, shout to the rafters about promotions, better pay, and more benefits.

Robots don’t do that.

RaaS also allows a company to have the benefits of robotic process automation by leasing robotic devices and accessing a cloud-based subscription service.

You will own nothing and be happy.

By not having to purchase the equipment outright, organizations can avoid the downsides of ownership and maintain their bottom line.

Cloud computing solutions are already in place for many organizations, so the foundation for RaaS has been perfectly set for the model’s increased use.

As adopting smart robotic technologies requires companies to part with a significant chunk of their financial resources, a RaaS solution also means companies have no need to invest in costly infrastructure.

Remote services and IoT are major growth, but lack of awareness and acceptance pose challenges

A major driver of the market is going to be the increased remote services provided by vendors in the market.

Companies are moving away from the physical approach of providing break-and-fix services to incorporate services that are predictive and proactive by combining the remote service platform with the Internet of Things.

The reason why uptake won’t be higher is because in some settings that require a personal touch like healthcare, companies will be hesitant to adopt robots because customers could feel alienated.

We are still in the early innings.

As the tech ecosystem advances, the integration of robots into this industry is inevitable.

Yes, they will be relied on to perform mundane tasks at first like Amazon’s warehouse robots who move around large amounts of packages.

We need to start somewhere.

In the future, robots will increasingly start to reach further up the value-added chain to offer some quite impressive set of skills to contribute to the labor force.

Rome wasn’t built in one day.

Some stocks to be on the lookout in the RaaS space are:

Rockwell Automation (ROK) is a leader in industrial-grade technology. Its systems, components, and software help manufacturers develop smarter and more efficient machines.

Zebra Technologies (ZBRA) is a longtime player in the automation space. The firm develops mobile computing devices to help employees of a company work more efficiently.

Teradyne (TER) is a developer of industrial equipment that helps automate repetitive tasks.

Intuitive Surgical (ISRG) is a pioneer of robotic-assisted surgery. Its da Vinci system made its commercial debut in 2000 and has since expanded across the globe.

Lastly, a second derivative play powering these robots will be Nvidia (NVDA) chips.

March 1, 2024 - Quote of the Day

Tech Letter

“If you're competitor focused, you have to wait until there is a competitor doing something” – Said Founder of Amazon Jeff Bezos

Trade Alert - (PANW) March 1, 2024 - TAKE PROFITS - SELL

Tech Alert

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline. Read more

March 1, 2024

Jacque's Post

(UBER JOINS THE DOW TRANSPORTS, WHILE MICROSTRATEGY GOES ON A BITCOIN SPENDING SPREE)

March 1, 2024

Hello everyone,

Welcome to March.

Uber joins the Dow Transports

Unlike the Dow Industrials, the Dow Jones Transport is not hitting historic highs. The last high was hit in November 2021, and it is now almost 7% below that mark.

Under Dow Theory, the Transports should confirm a new high in the Dow Industrials. The theory is that if you were shipping more, which is what the Transports represent, it’s a positive sign. Uber is not a shipping company, but then neither is Avis, and it is listed in the Transports too. It’s a ground transportation company like Uber. Uber did underperform after its inclusion but shot up again after its first buyback announcement of $7 billion was made on Feb. 14. Uber has far outperformed every other Transport stock in the past 12 months, up 133%. The top performer on the Transports, Matson, is up 68%, while Union Pacific, Old Dominion, CSX, and Kirby are up around 20% to 30%. Uber is overbought as shown in the chart. Wait for a sizable pullback.

The gender pay gap continues.

Men continue to outstrip women in the salary stakes, with men’s annual salary $11,542 greater than women’s, according to newly released data for Australian private companies. It’s a gap of 14.5%, down from last year’s 15.4%. In 2022-23 men’s median annual base salary was $79,613 compared to $68,071 for women. Thank goodness investment returns don’t discriminate based on gender. Investment/trading returns/success is mostly based on behavior.

Under Sea Carbon Storage – a technological leap.

Germany aims to cut its emissions to “net zero” by 2045. To achieve this the country plans to enable underground carbon storage at offshore sites. Specifically, Germany foresees enabling the transport of carbon dioxide and its storage under the sea in Germany’s exclusive economic zone, except in marine conservation areas.

Last year, Denmark launched an ambitious project that aims to bury vast amounts of carbon dioxide beneath the North Sea.

MicroStrategy dosed up on Bitcoin.

MicroStrategy has been buying up Bitcoin in large parcels recently. The latest purchases were made with cash between Feb. 15 and Feb. 25, according to a filing with the US Securities and Exchange Commission on Monday. The company now has a total basket of around 193,000 Bitcoin.

Michael Saylor, the chairman and co-founder of MicroStrategy, started buying Bitcoin in 2020 as an inflation hedge and alternative to holding cash. Bitcoin is up 460% since Saylor began buying. The value of the holdings briefly swelled to $10 billion earlier this month when the price of Bitcoin reached a more than two-year high. With Bitcoin halving coming soon, this stock is one to watch. It could well be a buy the rumour, sell the fact sort of event. When Bitcoin rises, this stock will rise along with it and vice versa. So, perhaps with a Bitcoin target of around $127,000.00, it might not be a bad idea to buy a small parcel when MicroStrategy does pull back.

Cheers,

Jacquie

March 1, 2024

Diary, Newsletter, Summary

Global Market Comments
March 1, 2024
Fiat Lux

Featured Trade:
(WHY TECHNICAL ANALYSIS IS A DISASTER)
(SPY), (QQQ), (IWM), (VIX),
(TESTIMONIAL), (NVDA)