Goldman Sachs’ Top Fund Manager Stock Picks: 25 Best Overweight Stocks

21. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders In Q2 2024: 88

Overweight Percentage: 0.10%

Dell Technologies Inc. (NYSE:DELL) is a diversified computer hardware firm that caters to the needs of businesses and consumers. The firm sells workstations, notebooks, server racks, and other computing equipment. Dell Technologies Inc. (NYSE:DELL) is one of the most well recognized brand names in the industry, and its shares have soared by 61% year to date on the back of market optimism for artificial intelligence. AI systems rely on large scale server racks and other equipment, and Dell Technologies Inc. (NYSE:DELL)’s decades old presence and experience in the industry provide it with key advantages. These have grown this year after short seller allegations have suggested that the firm’s competitor Super Micro might face trouble on the regulatory front. Server revenue accounts for roughly 46% of Dell Technologies Inc. (NYSE:DELL)’s revenue, and the firm benefits from increased business IT spending even if AI specific spending slows down. However, the stock remains vulnerable to AI tepidness, as evidenced by a 20% share price drop in May because of a Q2 guidance miss 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.”