12 Cheap AI Stocks to Buy in 2025

7. Dell Technologies Inc. (NYSE:DELL)

Analyst Upside (as of January 27): 49.27%

No. of Hedge Fund Holders: 60

Dell Technologies Inc. (NYSE:DELL) is a pioneer in producing desktops, servers, storage solutions, monitors, and gaming products. Dell is also one of the top AI companies that provides essential infrastructure, tools, and solutions that allow AI adoption through industries.

Dell Technologies Inc.’s (NYSE:DELL) strategic positioning focuses on end-to-end AI solutions, with a wide range of offerings from large-scale data centers to AI PCs. The company’s competitive advantage in AI revolves around its strong engineering capabilities. The demand for Dell’s AI-optimized servers continues to rise, driven by increasing data centers. In Q3 FY2025, the company’s AI-optimized server orders reached $3.6 billion, contributing to the total revenue of $24.4 billion, up by 10% year-over-year. The company’s AI server shipment totaled around $2.9 billion in Q3. In addition to that, the company ended the quarter with an AI backlog of $4.5 billion.

On January 10., Morgan Stanley’s analyst Erik Woodring maintained a Buy rating on Dell Technologies Inc. shares with a price target of $154. Woodring highlighted that Dell is well-positioned in the AI server market and projects its conventional hardware market to expand in 2025. Moreover, Dell has committed to returning more than 80% of its cash flow to shareholders, which will grow incrementally through 2027.