Insiders are Selling These 10 AI Stocks

6. Dell Inc (NYSE:DELL)

Number of Hedge Fund Investors: 88

On September 26, 2024, Dell Inc (NYSE:DELL) CEO Michael S. Dell sold 10 million shares at $122.40 per share, reducing his ownership by 35% to 18,292,241 shares. The transaction was valued at approximately $1.224 billion. The stock is down 3.8% since then.

UBS recently listed Dell Technologies Inc (NYSE:DELL) as one of the top tech stocks to own for the end of 2024.

UBS believes Dell Technologies Inc’s (NYSE:DELL) emerging strength in AI-focused servers and a refresh cycle for PCs are being supported by better pricing. Dell recently reported second-quarter results that topped estimates.

Bill Baruch, founder and president at Blue Line Capital, said in an interview with CNBC that there were margin concerns in the previous quarter report but in the latest results we saw “significant” margin improvement in the infrastructure solutions group which holds the AI server subsegment. This subsegment saw about 80% year-over-year growth.

“This was a great report. It’s everything we wanted to see.”

The analyst said that the stock could reach $134 by the end of this year.

Dell Technologies Inc (NYSE:DELL) got attention when Elon Musk said on Twitter that the company, along with Super Micro Computer, would make servers for his AI startup xAI. But Dell is expanding its partnerships with other companies, too.  In just a few quarters, AI servers have surged to account for 12.4% of total revenue, up from 2.2% three quarters ago. Dell Technologies Inc (NYSE:DELL) closed the quarter with a record $3.8 billion backlog, which is impressive.  In May 2024, Dell expanded their AI factory with Nvidia to include the new PowerEdge XE9680L server, as well as storage, edge, and workstation solutions.

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.”