We recently published a list of 10 Unstoppable Tech Stocks to Buy Right Now. In this article, we are going to take a look at where Dell Technologies Inc. (NYSE:DELL) stands against other unstoppable tech stocks to buy right now.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide, with the integration of AI and ML revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations around the globe are undergoing digital transformation to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
With substantial growth potential, the technology sector has consistently outperformed other sectors. In 2024, the S&P 500 Information Technology Sector Index rose by approximately 37%, outpacing the broader S&P 500 Index by an impressive 11.5%. This performance has led to skyrocketing market capitalizations for tech sector companies, prompting caution regarding high valuations. Following the market downturn triggered by DeepSeek’s emergence, JJ Kinahan, CEO of IG North America, stated in an interview with BNN Bloomberg that while the market had reached incredibly high levels, macroeconomic concerns such as inflation and high interest rates persist. He also suggests that developments related to DeepSeek provided an excuse for profit-taking with a ‘reset’ occurring in tech stocks. Now the focus should shift to earnings and the actual benefits derived from those substantial investments.
On a positive note, in his report on December 13, Adam Benjamin, Sector Portfolio Manager at Fidelity Investments, highlighted that the sector benefited in 2024 from outstanding results in the semiconductor industry, reflecting major corporate investments in AI infrastructure. He remains optimistic for 2025, as evident from his positive outlook:
“The outlook for the sector in 2025 and beyond may be bright, as tech companies continue to innovate and digitization and automation become increasingly important in our lives. I believe the next phase of development could present opportunities for software firms, as the application layer begins to roll out generative AI agents across end markets, and as the full benefits of AI begin to be realized. Progress may not be linear, though, and investors must be mindful of stock valuations and the timing and potential impact of further technological advances in the field, as well as the broader macroeconomic environment.”
Our Methodology
To identify the 10 best unstoppable stocks, we conducted extensive research to compile a list of fundamentally strong U.S.-listed companies that performed well in 2024 and are expected to continue their success in 2025. Our focus included technology companies with a market capitalization of $2 billion and above. We screened our coverage based on the following criteria: 1. Stock price should have outperformed the S&P 500 Index in 2024 (+22% rise in share price); 2. must have reported positive revenue growth over the last 5 years; 3. EPS growth for the next year is expected to be over 25%; 4. It should have a potential upside of at least 10%. Ultimately, the stocks were ranked in ascending order of their hedge fund sentiment as per Insider Monkey’s database of 900 hedge funds, as of Q3 2024.
Note: all pricing data is as of market close on January 28.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of IT experts discussing the latest network security trends over a laptop screen.
Dell Technologies Inc. (NYSE:DELL)
Upside Potential: 53%
Number of hedge funds: 60
Dell Technologies Inc. (NYSE:DELL) is a key player in IT infrastructure modernization, artificial intelligence (AI), software-defined, and cloud-native infrastructure solutions. The company offers a wide array of products and services, including personal computers, servers, storage solutions, networking, software, and information security. When it comes to data centers, Dell provides an extensive range of products and services that address both traditional and emerging needs, such as servers, storage systems, hyperconverged infrastructure (HCI), cloud computing solutions, server racks and enclosures, modular data centers, and networking equipment. This comprehensive portfolio positions Dell Technologies Inc. (NYSE:DELL) well to leverage growth in the data center industry.
Dell Technologies Inc. (NYSE:DELL)’s Servers & Networking revenue grew a solid 58% year-on-year in Q3 2025 (November 2024), outpacing all other businesses by a significant margin. Encouraged by the strong results, Jeff Clarke, COO at DELL, said: “Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%, with growth across all customer types.”. In early January 2025, UBS named Dell Technologies Inc. (NYSE:DELL) as their top large-cap pick in Enterprise Hardware and Networking coverage in the US. UBS currently rates it as a BUY with a price target of $158. Over the past year, the company’s stock performance has been broadly in line with the S&P 500 Index.
Overall, DELL ranks 3rd on our list of unstoppable tech stocks to buy right now. While we acknowledge the potential of DELL to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DELL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.