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Analysts Mixed on Dell Technologies (DELL) Amid Rising Memory Costs

Dell Technologies Inc. (NYSE:DELL) is one of the most undervalued AI stocks to buy now.

With significant analyst and hedge fund sentiment, alongside a low forward price-to-earnings (PE) ratio, Dell Technologies Inc. (NYSE:DELL) secures a spot on our list of the most undervalued AI stocks to buy now.

With memory costs rising to record highs, analysts remain mixed on Dell Technologies Inc. (NYSE:DELL). Yet BofA remains confident that the company’s supply chain discipline and structural cost controls may help it sail more smoothly than its competitors.

Shedding light on the upcoming fourth-quarter earnings release on February 26, 2026, analysts at BofA expect the quarter to reflect a strong performance apart from rising costs. After incorporating the uncertainty tied to the future trajectory of costs, the firm adjusted its target, revising it downward from $150 to $135. In the stock’s valuation model, the firm reduced its FY27 EPS estimate by $0.86 to $10.00.

As of February 23, 2026, BofA keeps a ‘Buy’ rating on Dell Technologies Inc. (NYSE:DELL). The firm remains constructive on the stock as the company tackles memory headwinds.

In response, Dell Technologies Inc. (NYSE:DELL) is engaging China’s ChangXin Memory Technologies to test and approve DRAM chips, as reported by Nikkei Asia on February 4, 2026. Amid a global shortage, market observers are projecting memory prices to remain at elevated levels this year. At a time like this, Dell Technologies Inc. (NYSE:DELL)’s move to diversify its suppliers becomes critical amid its push to ease near-term margin pressure.

Dell Technologies Inc. (NYSE:DELL) focuses on delivering end-to-end IT infrastructure, alongside client computing solutions. The company serves both enterprise and consumer markets worldwide.

While we acknowledge the potential of DELL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts and 7 Most Volatile Stocks Under $5 for Day Trading.

Disclosure: None.  Follow Insider Monkey on Google News.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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