In the latest trading session, Dell Technologies (DELL) closed at $103.10, marking a +1.79% move from the previous day.
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Dell Technologies Inc. (NYSE: DELL) suffered a 9% stock drop on Monday, January 27, amid concerns sparked by DeepSeek's affordable AI chatbot. This emerging technology has disrupted the industry, posing a significant threat to U.S. tech leaders and raising questions about the long-term viability of AI infrastructure investments.
Artificial intelligence (AI) is expected to impact the global economy in a big way in the long run, with market research firm IDC estimating that every dollar spent on AI-related business solutions and services will generate $4.60 in the global economy in 2030.
The Computer - Micro Computers industry participants like Dell Technologies (DELL) and HP (HPQ) are benefiting from the strong demand for enterprise devices amid stiff macroeconomic challenges globally.
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
Dell Technologies has faced recent volatility, falling 14% in the past 6 months due to a rocky earnings report in November. Despite a recent earnings miss, DELL's expansion into AI and its rapidly growing storage and server businesses position it for future growth. DELL's server and networking revenue surged 58%, and analysts project Total revenue of $96.3 billion for 2025, up 8% from 2024.
The latest trading day saw Dell Technologies (DELL) settling at $111.55, representing a +1.74% change from its previous close.
Dell Technologies (DELL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Dell Technologies has multiple catalysts at play for eFY25, including AI server growth, traditional server & storage refresh cycles, and commercial PC sales with back-to-office trends. Analysts are expecting potential near-term challenges, revising EPS estimates down 19 times in the last 90 days. Dell aims for 3-4% annual top-line growth and 8% EPS growth, with plans to return over 80% of adjusted free cash flow to shareholders through dividend growth and share repurchases.
Dell's stock is a strong buy with a 12-month price target of $180, driven by its ultra-cheap valuation and significant AI potential. Dell's infrastructure solutions segment, including AI revenues, surged last quarter, indicating robust demand and potential for outperforming consensus estimates. Dell's forward P/E ratio is around 10, with a PEG ratio of 0.65, making it exceptionally inexpensive for a market leader with considerable growth potential.
Are you looking for a potentially underrated artificial intelligence (AI) stock to buy for 2025? While it may be tempting to simply invest in chipmaking giant Nvidia, given its hefty $3.3 trillion market capitalization, the returns from owning the stock this year may be limited from here.