Roth MKM’s AI & Non-AI Stocks To Be Cautious About: 15 Stocks Bank With $60 Billion Capital Raise Is Watching

10. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders In Q3 2024: 60

Dell Technologies Inc. (NYSE:DELL) is a computer hardware company that sells laptops, server products, and other items in the personal and enterprise computing industries. The firm’s enterprise IT division provides it with unique exposure to the AI data center segment. As a result, Dell Technologies Inc. (NYSE:DELL)’s shares are up 82% year-to-date and have benefited particularly as key NVIDIA customer and server company Super Micro is facing troubles. On the flip side, since investors now expect Dell Technologies Inc. (NYSE:DELL) to benefit from AI-driven data center and IT infrastructure spending, any weakness in this industry could create headwinds for the stock. This dependence was clear in May when Dell Technologies Inc. (NYSE:DELL)’s shares dropped by 20% after the firm’s guidance missed analyst estimates 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.”