10 Best Cheap Technology Stocks To Buy According to Analysts

7. Dell Technologies Inc. (NYSE:DELL)

Forward P/E Ratio: 12.15

Average Upside Potential: 37.27%

Number of Hedge Fund Holders: 60

Dell Technologies Inc. (NYSE:DELL) provides integrated technology solutions globally and operates through its ISG (Infrastructure Solutions Group) and CSG (Client Solutions Group) segments. ISG offers enterprise-grade storage, servers (including AI-optimized), and networking solutions. CSG provides desktops, workstations, notebooks, and related peripherals. It also offers cybersecurity solutions, financing, and VMware reselling, serving enterprises, public institutions, and SMBs.

Citi analyst Asiya Merchant maintained a Buy rating on Dell Technologies Inc. (NYSE:DELL) with a $156 price target on February 12. Merchant’s optimism stems from improving demand, positive industry event trends, and expected higher AI server margins. The company saw a shift in AI server demand towards Nvidia’s Blackwell architecture in Q3, which impacted short-term shipments as these new products ramped up. Despite this, Dell Technologies Inc. (NYSE:DELL) secured $3.6 billion in AI server orders, which is an 11% sequential increase, and signed 2,000+ enterprise customers for its AI solutions.

It’s also expanding its partnership with CoreWeave, delivering the first Dell PowerEdge XE9712 server racks with NVIDIA GB200 NVL72 to enhance CoreWeave’s AI cloud platform. This collaboration will utilize the company’s liquid-cooled IR7000 racks and AI professional services to optimize CoreWeave’s data center design, combining Dell Technologies Inc.’s (NYSE:DELL) infrastructure with NVIDIA’s technology.

Despite disappointing earnings in H1 2024, the Carillon Scout Mid Cap Fund views the company positively due to its potential for AI-driven growth and strong product offerings. The fund stated the following regarding Dell Technologies Inc. (NYSE:DELL) in its Q2 2024 investor letter:

“Dell Technologies Inc. (NYSE:DELL) was a top contributor despite reporting disappointing first-quarter earnings results, because investors looked through the near-term disappointment and expected strong growth from AI-related servers and personal computers. We expect Dell to participate in the growth of artificial intelligence hardware, especially as enterprises invest more aggressively. We like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”