7 Cheap Beginner Stocks to Invest In

5. Dell Technologies Inc. (NYSE:DELL)

Forward P/E Ratio: 14.94 

Earnings Growth This Year: 10.20% 

Number of Hedge Fund Holders: 88 

Dell Technologies Inc. (NYSE:DELL) is a leading technology company that designs and sells various computer technologies ranging from personal computers to integrated solutions such as technologies related to artificial intelligence (AI), data analytics, and cloud computing.

The company has two main divisions, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The Infrastructure Solutions Group (ISG) helps businesses with their IT infrastructure needs including data storage, servers, and other networking technologies.

Dell Technologies Inc. (NYSE:DELL) is one of the cheap beginner stocks to invest in and is also considered to be an upcoming AI technology company. The company reported second-quarter results for 2024, indicating a 9% increase in revenue year-over-year, driven mainly by high demand for its servers which are used for mounting AI chips.

Its Infrastructure Solutions Group (ISG) revenue was up 38% during the same time to a record $11.6 billion. Within the segment, the server revenue increased by 80% from the same quarter last year, with AI servers accounting for $3.1 billion in revenue.

The increase in AI serves revenue indicates that the company is moving towards a point where a major source of revenue will come from its AI related operations. Another point that backs this up is the fact during the latest quarter its AI server backlog stood at $3.8 billion, indicating the company already has a strong pipeline for its servers.

The stock was held by 88 hedge funds in Q2 2024, with total stakes worth $2.9 billion. Coatue Management is the top shareholder of the company with a position worth more than $1 billion.

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.”