15 Best Hardware Stocks According To Goldman Sachs

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1. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Shareholders In Q1 2024: 82

Dell Technologies Inc. (NYSE:DELL) is one of the most well known personal and enterprise computing hardware products providers in the world. However, Wall Street’s AI euphoria wasn’t kind to the stock in June 2024 after its earnings report saw investors question AI product margins. After the earnings, Evercore ISI kept a $165 share price target and an Outperform rating on Dell Technologies Inc. (NYSE:DELL)’s shares as it outlined that the firm can rake in hefty AI server revenues, attributed earnings weakness to seasonality, and added that margins could jump to sit in between mid to high teens.

Dell Technologies Inc. (NYSE:DELL)’s forward price to earnings ratio of 16.92 means that the market expects it to grow slowly than broader indexes. Dell Technologies Inc. (NYSE:DELL) CEO Jeff Clarke was also optimistic about its AI products, sharing during the ill fated earnings call:

ISG, our AI-optimized servers orders increased to $2.6 billion, with shipments up more than 100% sequentially to $1.7 billion. We have now shipped more than $3 billion of AI servers over the last three quarters.

Our AI server backlog is $3.8 billion, growing sequentially by approximately $900 million. Our AI optimized server pipeline grew quarter-over-quarter again and remains a multiple of our backlog. We’ve seen an expansion in the number of enterprise customers buying AI solutions, which remains a significant opportunity for us given we are in the early stages of AI adoption.

We recently covered NVIDIA Corporation (NASDAQ:NVDA) in Analysts are Upgrading These 10 AI Stocks and the firm ranked 3rd in this list. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None.

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