Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.

After the post-market trading of US stocks on Thursday Eastern Time, $Dell Technologies (DELL.US)$ They announced better-than-expected second quarter performance. In response to this, Wall Street banks have expressed that this performance has alleviated investors' concerns, that is, artificial intelligence can indeed improve the profit margins of companies other than Nvidia. $NVIDIA (NVDA.US)$ Before the pre-market trading on Friday US stocks, as of the time of writing, the stock has risen by about 5%.

Dell's Infrastructure Solutions Group (ISG) achieved a revenue of $11.65 billion in the second quarter, a year-on-year increase of 38%. The EBIT profit margin was 11%, an increase of 350 basis points compared to the previous quarter. This includes a revenue growth of 80% in the server and networking business, reaching $7.67 billion, far exceeding the market's expected $5.96 billion.

Analyst Amit Daryanani from Evercore ISI released a research report stating that this performance is impressive.

In an investor report, Daryanani wrote, "Given concerns about Dell's ISG division and the profitability of artificial intelligence, we believe that this performance is quite impressive and should help alleviate investors' concerns about profitability." The analyst gave Dell an "outperform" rating with a target price of $140.

In addition, Dell stated that server revenue for the second quarter was $3.1 billion, an increase of 82% compared to the previous quarter. The backlog of orders currently stands at $3.8 billion, and the orders to be delivered have reached several times the backlog of orders.

Looking ahead to the remaining time of the 2025 fiscal year, Dell stated that it expects revenue to be between $95.5 billion and $98.5 billion, with a midpoint of $96 billion, slightly lower than the market's expected $96.37 billion. The company added that it expects revenue growth of approximately 30% for its ISG division, primarily due to artificial intelligence and traditional servers.

Citi analyst Asiya Merchant agrees, citing the continued development of artificial intelligence.

Merchant wrote in an investor report: "Performance exceeded expectations, with growth driven by artificial intelligence servers (up 82% QoQ), and ISG department profit margin also better than expected, as Dell is able to provide higher services to improve the enterprise customer portfolio." Merchant reiterated a "buy" rating and raised the target price from $150 to $160.

Wells Fargo analyst Aaron Rakers also reiterated his "hold" rating, stating that this performance "significantly" alleviates concerns about artificial intelligence profit margin.

Rakers wrote in a report: "Dell's substantial capital return ability remains a key tenet of our argument."

Editor / jayden