Silver Lake Group, L.L.C., a significant stakeholder in Dell Technologies Inc. (NYSE:DELL), has sold a substantial portion of its holdings in the company. According to the latest filing, Silver Lake disposed of shares worth approximately $12.99 million. The transactions took place on December 6, 2024, with shares sold at prices ranging from $125.28 to $126.15 per share. The sale comes as Dell, now valued at $86.69 billion, has demonstrated remarkable performance with an 83% return over the past year.
The sales involved various entities associated with Silver Lake, including SL SPV-2, L.P., Silver Lake Partners IV, L.P., and Silver Lake Technology Investors IV, L.P., among others. Post-transaction, these entities continue to hold significant shares in Dell Technologies, with holdings distributed across different Silver Lake affiliates.
These transactions reflect Silver Lake's ongoing management of its investment portfolio in Dell Technologies, as the firm continues to adjust its positions in the tech giant.
In other recent news, Dell Technologies has reported a significant 10% increase in its third-quarter earnings, reaching $24.4 billion, primarily driven by the Infrastructure Solutions Group's focus on AI infrastructure and server solutions. The company's earnings per share rose to $2.15, marking a 14% year-over-year increase. Dell also disclosed the issuance of 25 million Class C common shares upon conversion of an equal number of Class A common shares by CEO Michael Dell.
On the AI front, xAI announced plans to expand its Colossus supercomputer facility in Memphis by adding over one million Graphics Processing Units (GPUs), reinforcing the city's emerging status as a global hub for artificial intelligence. Dell Technologies, along with Nvidia (NASDAQ:NVDA) and Supermicro Computer, are also set to establish operations in Memphis.
TD Cowen maintained its Hold rating on Dell, citing underperformance in the PC segment and delayed revenue from AI initiatives. Despite this, Mizuho (NYSE:MFG) Securities, Goldman Sachs, and Citi maintained positive ratings on Dell, adjusting their price targets accordingly. These recent developments highlight Dell's strategic focus on AI infrastructure and server solutions, contributing to a significant surge in its Infrastructure Solutions Group's revenue.
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