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Is Dell Technologies Inc (NYSE:DELL) The Best Buy-The-Dip AI Stock?

We recently published a list of 10 Biggest AI Stories and Ratings Updates You Should Not Miss This Week. Since Dell Technologies Inc (NYSE:DELL) ranks 9th on the list, it deserves a deeper look.

The Federal Reserve now expects just one rate cut in this year, and the market’s reaction to this development has been calmer-than-expected, showing investors are now paying little to no attention to what the Fed does and instead have their eyes focused on AI, which continues to push the markets higher. Tech companies, small and large, are continuing to roll out AI-focused products and solutions, while funds are pouring billions into AI.  SoftBank has recently committed another $5 billion in AI investments for 5 companies ($1 billion each). A Wall Street Journal report cited SoftBank’s CFO, who said the bank’s chief Masayoshi Son was taking a “break from quarterly earnings meetings so he could focus on AI.”

In this backdrop it’s important to stay ahead of the curve and see what’s happening in the AI space.

In this article we will take a look at some of the biggest AI stock ratings updates and stories which can’t be missed. We focused on AI stocks that are popular among the smart money investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Photo by Its me Pravin on Unsplash

Dell Technologies Inc (NYSE:DELL)

Number of Hedge Fund Investors: 82

Dell Technologies Inc (NYSE:DELL) shares are in the limelight after latest media reports suggested many Chinese companies are finding loopholes in US sanctions to buy and use chips made by US companies. These loopholes include renting and using third parties as indirect buyers. Earlier this year, it was reported that some Chinese research institutes were able to buy Nvidia’s AI chips through resellers. These chips were reportedly embedded in server products made Dell Technologies Inc (NYSE:DELL).

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Moving beyond this news, many investors are asking if Dell Technologies Inc (NYSE:DELL) is one of the best AI stocks to buy in 2024? Many Wall Street analysts are saying yes to this question, especially after the last dip in the stock price following lackluster quarterly results.  Morgan Stanley analyst Erik Woodring recently said in a note that he’d buy Dell Technologies Inc (NYSE:DELL) on the dip since the near-term [Infrastructure Solutions Group] profitability disappointment is “more than offset by building AI ecosystem momentum.”

Bank of America analyst Wamsi Mohan said in a note after Q1 earnings that he reiterated his Buy rating for Dell Technologies Inc (NYSE:DELL). The analyst believes we are still in the early stages of AI adoption and expects momentum around AI servers. Mohan set a $180 price target for Dell Technologies Inc (NYSE:DELL), which shows a 33% upside potential from the current levels.

Overall, Dell Technologies Inc (NYSE:DELL) ranks 9th on Insider Monkey’s list titled 10 Biggest AI Stories and Ratings Updates You Should Not Miss This Week. While we acknowledge the potential of Dell, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DELL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. This article is originally published at Insider Monkey.