"Cramer pointed to three specific reasons Dell deserved better than what the market gave it. First, Dell bought back a significant amount of stock during the decline. That's not a company in distress. Dell repurchased approximately 54 million shares in FY26 and returned a record $7.5 billion to shareholders for the full year."
"Second, Dell's servers had become the principal way for businesses to buy Nvidia chips. In Q4 FY26, Dell's AI-optimized server revenue hit $8.95 billion, up 342% year-over-year. Full-year AI server orders came in at over $64 billion, with a record $43 billion backlog entering FY27."
"Third, and most underappreciated: Dell's two major competitors, HP Enterprise and Supermicro, don't have clean enough balance sheets to offer vendor financing at scale. Dell can, and does. When a company is buying millions in AI server equipment, vendor financing is a genuine competitive advantage."
Dell Technologies experienced a significant stock decline from $168 to $110, which Jim Cramer attributed to irrational market behavior rather than business issues. He highlighted that Dell's fundamentals remained strong, citing stock buybacks, substantial AI server revenue growth, and a competitive advantage in vendor financing. Dell repurchased 54 million shares and returned $7.5 billion to shareholders. Its AI-optimized server revenue reached $8.95 billion, with a backlog of $43 billion. Competitors HP Enterprise and Supermicro lack the balance sheets to offer vendor financing at scale, giving Dell an edge.
Read at 24/7 Wall St.
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