11 Best Computer Hardware Stocks to Invest in Right Now

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4. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 60

Dell Technologies Inc. (NYSE:DELL) is one of the pioneers in computer desktops, servers, storage solutions, monitors, gaming products, and much more. It has gained an indispensable position in the AI market due to its AI servers. It is one of the best computer hardware stocks to invest in now.

Servers produced by the company are key components for hyperscale data centers. During 2024, the number of hyperscale data centers (greater than 100,000 feet) reached 1,000m with at least 120 expected to come online on an annual basis due to increasing demand from AI. During the third quarter of fiscal 2025, Dell Technologies Inc.’s (NYSE:DELL) Infrastructure Solutions Group, which deals with AI servers, reported record revenue of $11.6 billion, up 38% year-over-year.

Management believes its total addressable market for AI infrastructure will reach $265 billion by 2027, and a market-leading position within the AI servers means there is much to gain for the company. It already witnessed demand for its AI-optimized servers improve by 11% quarter-over-quarter to $3.6 billion. Moreover, a healthy AI backlog of $4.5 billion during the quarter also advocates for its robust position in the market. Looking ahead, management expects next quarter’s revenue to be in the range of $24 billion and $25 billion, indicating 10% growth.

Carillon Scout Mid Cap 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.”

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