10 AI Stocks Making Waves This Week

7. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 63

Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide. On May 21, Morgan Stanley kept its “Buy” rating on the stock and raised its price target from $89 to $126 ahead of Dell’s Q1 Fiscal 2026 earnings due on May 29. The firm anticipates modest outperformance for Dell’s April quarter. However, it believes that the full-year guidance will remain unchanged. The firm has reason to believe so, based on Dell’s strong demand for AI infrastructure and mixed results in traditional hardware and tariffs uncertainty.

Dell’s AI server business looks strong regardless of the mixed results. An estimated $2.3 billion in revenue is expected for the April quarter and nearly $20 billion in visibility for Fiscal 2026. That said, the July quarter growth will largely depend on how Dell can manage its supply. The firm also noted market share gains in Dell’s Infrastructure Solutions Group, while its Client Solutions Group is also anticipated to perform better in the first half of the year.

All these factors have led the firm to anticipate a small upside for Q1 results. The stock has been performing well recently, but may pause following earnings. Nevertheless, the firm remains positive about the second half of the year.