15 AI Stocks That Are On Sale

7. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 88

Expected Earnings Growth: 10.2%

P/E Ratio: 15.2

Dell Technologies Inc. (NYSE:DELL) is an information technology company based in Round Rock, Texas. It offers AI-optimized servers and PCs, among more.

Being one of the world’s largest producers of computers and servers, Dell Technologies Inc. (NYSE:DELL) is a company that has retained investor attention for decades. At present, the company operates two main businesses – client solutions and infrastructure solutions. In fiscal 2024, the former generated 55% of Dell Technologies Inc.’s (NYSE:DELL) revenue, whereas the latter generated 38%.

While some are discouraged by Dell Technologies Inc.’s (NYSE:DELL) recent performance in the PC market, other investors are more focused on the potential of its AI-optimized servers and their growing demand within the data center market in light of the AI boom. This is especially important considering the fact that several big tech players like Amazon and Microsoft are currently making large investments in AI data centers, a development that is expected to be advantageous for companies like Dell Technologies Inc. (NYSE:DELL).

Dell Technologies Inc. (NYSE:DELL) does seem to be facing some challenges this year, including stagnating PC sales and lower profit margins from its servers and data centers. However, the company’s CFO continues to expect solid top-line growth, which is reassuring for many investors, especially in light of the company’s cheap valuation.

Dell Technologies Inc. (NYSE:DELL) was spotted in the portfolios of 88 hedge funds in the second quarter, with a total stake value of $2.9 billion. Coatue Management was the most prominent shareholder, holding 7,311,852 shares.