We recently compiled a list of the 14 AI News Investors Are Paying Attention To. In this article, we are going to take a look at where Dell Technologies Inc. (NYSE:DELL) stands against the other AI stocks investors are paying attention to.
The release of ChatGPT by OpenAI, now the most valuable private firm in the world, back in November 2022 had widespread implications for the technology industry. In the two years since the release, technology valuations, which had hit a snag due to broader inflation and slowing growth concerns, have jumped back up. Technology giants have surpassed multi-trillion dollar valuations and OpenAI itself has crossed $150 billion in value. In this environment, technology firms have been pushing for greater capital expenditures on AI infrastructure, telling investors that adding more data and computing power will consistently lead to improved AI models.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
However, news agency Reuters reports that new techniques being used by AI firms to train their AI models could reshape the AI arms race, and have implications for the types of resources that AI companies have an insatiable demand for, from energy to types of chips. For example, Ilya Sutskever, a Canadian-Israeli computer scientist who was one of the founders of OpenAI, has said that results from scaling up pre-training have plateaued. The computer scientist claims that the 2010s were the age of scaling, and now we’re back in the age of wonder and discovery once again. Everyone is looking for the next thing, and scaling the right thing matters more now than ever.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in 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)
Market Capitalization: $95 Billion
Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services. On November 11, Morgan Stanley raised the price target on the stock to $154 from $136 and kept an Overweight rating on the shares. In an investor note, the advisory claimed that AI server momentum remained strong for the hardware firm and that the recent checks pointed to about $20 billion of AI server revenue in FY26, which was 56% higher than the prior forecast. The advisory now forecasts $110 billion of revenue and $10.50 of EPS in FY26 for Dell, or 5% and 12% above the Street views, respectively.
Overall DELL ranks 12th on our list of the stocks investors are paying attention to. While we acknowledge the potential of DELL as an investment, our conviction lies in the belief that some 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
