Jim Cramer Thinks These 10 Stocks Deserve Your Attention

5. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Investors: 88

Jim Cramer highlighted that Dell Technologies Inc. (NYSE:DELL) is seeing an increase in its stock price because it will be added to the S&P 500 later this month. Cramer suggested that investors should not sell their shares in Dell Technologies Inc. (NYSE:DELL) just because of this recent strength. Citi analysts also pointed out that Dell Technologies Inc. (NYSE:DELL) has several upcoming catalysts, including a PC refresh cycle expected to continue into next year.

“Shares of Dell Technologies is getting a lift Monday on news that the it will be added to the S&P 500 later this month. I don’t think you need to sell Dell into strength here. Citi analysts said Monday they see multiple catalysts ahead for Dell including the PC refresh cycle into next year.”

Dell Technologies Inc. (NYSE:DELL) is positioned for long-term growth, with strong performance in AI-related sectors driving its bullish outlook. In Q2 2024, Dell Technologies Inc. (NYSE:DELL) reported $22.9 billion in revenue, thanks largely to a 10% growth in its Infrastructure Solutions Group (ISG), which benefited from increasing demand for AI-optimized servers. This suggests Dell Technologies Inc. (NYSE:DELL) is well-placed to capitalize on the broader adoption of AI across industries. Looking forward, Dell Technologies Inc. (NYSE:DELL) forecasts revenue between $91 billion and $95 billion for FY 2025, with earnings per share expected to range from $7.25 to $7.75, signaling confidence in its future performance.

Dell Technologies Inc. (NYSE:DELL) ‘s partnerships, particularly with NVIDIA Corporation (NASDAQ:NVDA) on AI-optimized servers, are seen as key drivers for boosting margins. While its Client Solutions Group saw a 12% decline in year-over-year revenue, Dell Technologies Inc. (NYSE:DELL) expects AI-driven investments to fuel improvements moving forward. Analysts remain optimistic, maintaining strong “buy” ratings and raising price targets, underscoring Dell Technologies Inc. (NYSE:DELL) ‘s potential as a solid long-term investment opportunity in the tech sector.