Goldman Sachs’ List Of Stocks That Hedge & Mutual Funds Love & Hate: 28 Stocks On The Mutual and Hedge Funds Radar

20. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders In Q2 2024: 88

Category: Shorted by HFs and overweight among mutual funds

Dell Technologies Inc. (NYSE:DELL) is one of the biggest consumer hardware companies of its kind and a well known brand name in its industry. The firm has a diversified business model which is exposed to consumer and enterprise spending. Dell Technologies Inc. (NYSE:DELL) sells laptops and other computing equipment to consumers, and networking hardware such as racks to businesses. Its shares are up by a strong 72% year to date primarily due to the firm’s enterprise exposure. This exposure places Dell Technologies Inc. (NYSE:DELL) in a favorable place to exploit business AI spending as its servers and other products are essential to building data centers to compute AI workloads. Additionally, Dell Technologies Inc. (NYSE:DELL) also benefits from non AI enterprise IT spending which has been depressed in the high interest rate era. Yet, if AI revenues disappoint, then the stock is vulnerable as was the case in May after shares dropped by 20% as Dell Technologies Inc. (NYSE:DELL)’s guidance missed by 13%.

Scout Investments mentioned Dell Technologies Inc. (NYSE:DELL) in its Q2 2024 investor letter. Here is what the fund said:

“Dell Technologies 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.”