10 AI Stocks Analysts Are Tracking Closely

8. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 54

Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI Stocks Analysts Are Tracking Closely. On August 21, Morgan Stanley analyst Erik Woodring raised the price target on the stock to $144.00 (from $135.00) while maintaining an Overweight rating.

Analysts believe that the recent pullback in the shares offer a more compelling setup into earnings. July quarter results for enterprise hardware are expected to modestly outperform expectations driven by robust artificial intelligence spend and solid PCs in Q2. The firm also views upside to Dell’s Q2 estimates and full-year outlook.

According to Morgan Stanley, Dell is the leading OEM for AI compute, gaining share with key customers xAI and CRVV. Several other catalysts are working in favor of the stock, which is why the firm likes its long-term story.

“We continue to like DELL’s long-term story — the company is the clear leading OEM for AI compute and is gaining share with key customers xAI and CRVV, is back to gaining share in enterprise storage markets, is performing decently in traditional servers, and is in the middle innings of a company-wide cost efficiency program that we see driving 10%+ EPS growth over the next 3 years (vs. mgmt’s stated goal of 8%+). At $128, or ~10% lower than a week ago, DELL is trading at 11.3x our FY27/CY26 EPS, which is 5% above Consensus, and thus we see an opportunity for both multiple expansion and positive EPS revisions from here. That said, we see less upside to DELL vs. HPE over the next 12 months given DELL’s current valuation premium, unless we gain confidence that DELL Storage can be a secular grower (aided by AI attach), which is incorporated into our $196 bull case valuation. DELL’s October 7 Analyst Day will be the next major catalyst after F2Q earnings.”