13 Cheap AI Stocks to Buy According to Analysts

3. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 63

Average Upside Potential: ~27.2%

Forward P/E as of May 12: ~10.3x

Dell Technologies Inc. (NYSE:DELL) remains a critical player in the AI industry as it is an AI infrastructure and solutions powerhouse, allowing companies to train, manage, and deploy AI systems at scale. The company highlighted that its prospects for AI remain robust, as it extends AI from the largest cloud service providers, into the enterprise at scale, and out to the edge with the PC. While announcing its results for FY 2025, Dell Technologies Inc. (NYSE:DELL) highlighted that the deals it has booked with xAI and others place its AI server backlog at ~$9 billion.

Erik Woodring, an analyst from Morgan Stanley, is optimistic about the company’s stock, backed by factors such as its strong position in the market. As per the analyst, Dell Technologies Inc. (NYSE:DELL)’s leadership in AI systems is projected to continue, with strong growth opportunities in AI servers. Furthermore, the company’s diversified customer base in AI servers, which includes several GPU clouds and infrastructure providers, is regarded as a critical strength aiding its long-term opportunities, added Woodring.  With the acceleration of AI adoption, enterprises need a comprehensive suite of solutions. Thus, Dell Technologies Inc. (NYSE:DELL)’s capability to provide end-to-end solutions provides it with a strong advantage in capturing a significant share of AI-related spending.