5 Best Computer Hardware Stocks To Buy Now

In this article, we discuss 5 best computer hardware stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Computer Hardware Stocks To Buy Now. 

5. Dell Technologies Inc. (NYSE:DELL)

Number of Hedge Fund Holders: 46

Dell Technologies Inc. (NYSE:DELL) is a global company that offers a wide range of solutions, products, and services. It operates through two segments – Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG segment focuses on storage solutions such as all-flash arrays, software-defined storage, and servers like rack, blade, tower, and hyperscale servers. It is one of the best computer hardware stocks to invest in. 

On April 18, Amit Daryanani, an analyst at Evercore ISI, raised the price target for Dell Technologies Inc. (NYSE:DELL) from $46 to $50 while maintaining an Outperform rating on the shares. Evercore ISI believes that Dell Technologies Inc. (NYSE:DELL)’s guidance for the fiscal year 2024 appears to be relatively conservative compared to its competitors and industry data providers. The firm also noted that the management’s recent meeting conveyed a sense of cautious optimism. 

According to Insider Monkey’s fourth quarter database, 46 hedge funds were bullish on Dell Technologies Inc. (NYSE:DELL), compared to 49 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, 4.5 million shares worth $181.8 million. 

Here is what Third Point Management has to say about Dell Technologies Inc. (NYSE:DELL) in its Q3 2021 investor letter:

“Michael Dell has created substantial value for shareholders since re-listing the company several years ago. Earlier this year, Dell Technologies announced that it would be spinning its $50 billion stake in VMWare, which we believe will unlock the underappreciated value of the Dell server and PC businesses. Dell’s best attribute has been strong free cash flow generation, which the company has used to de-lever and create significant latent value for equity holders. Looking ahead, we believe this core Dell business, which still trades at a discount to its hardware peer group, should instead command a premium multiple thanks to its leading market share, profitability, and impressive execution. There are few large cap companies which possess a nearly 10% FCF yield, 2.5% dividend yield and 1.5x leverage ratio; Dell is one of them.”