12 Best Tech Stocks to Buy According to Hedge Funds

7. Dell Technologies, Inc. (NYSE:DELL)

Average Analyst Upside: 24.83%

Number of Hedge Fund Holders: 54

Market Cap: $82.12 billion

Dell Technologies, Inc. (NYSE:DELL) is one of the best tech stocks to buy according to analysts. On August 29, Wells Fargo maintained its Overweight rating on Dell Technologies, Inc. (NYSE:DELL), while reducing the price target from $160 to $150. As of September 2, the stock was trading at $120.96, an implied price target of 24%. The company reported its Q2 FY 2026 earnings on August 28. The stock has declined nearly 10% since then.

Wells Fargo noted that the persisting concern over AI sever margin remains a worry and was the cause for the decline in the stock, despite a top/bottom line beat. However, the firm said that it is a buyer on a pullback.

Dell’s Infrastructure Solutions Group (ISG), which includes servers, saw an operating margin of 8.8% in Q2, falling below expectations of 10.3%. Dell’s AI server margins are coming under pressure due to high hardware costs, like NVIDIA’s GPU, and Dell’s strategy to price aggressively to maintain its share in the booming AI server market. However, the company’s AI server backlog remains strong, reaching $11.7 billion at the end of the quarter.