Dell Technologies (DELL) Has Gained More Than 30% Over the Past Month, Valuation Remains Cheaper Than The S&P

Dell Technologies Inc. (NYSE:DELL) is considered a pure-play data center stock as its Infrastructure Solutions group sells PowerEdge servers and storage systems directly to data centers, enterprises, and cloud providers. It is also one of the Best Data Center Stocks That Are Cheaper Than the S&P 500.

​The stock has gained more than 76% over the past 30 days, mainly due to record-breaking fiscal Q1 2027 earnings on May 29. During the quarter, Dell Technologies Inc. (NYSE:DELL) delivered record adjusted EPS of $5.24, exceeding the $2.96 consensus and revenue of $43.84 billion, significantly ahead of the expected $35.77 billion. Notably, the growth was driven by 757% year-over-year increase in AI server revenue, which reached $16.1 billion. Moreover, the company also ended the quarter with an AI server backlog of $51.3 billion.

​Following the release on June 1, Truist raised the price target on the stock from $170 to $360, while maintaining a Hold rating. The firm highlighted exceptionally strong demand along with a tight supply environment. The firm noted that this combination suggests the company has more potential revenue than it can currently fulfill. Truist expects Q2 fiscal 2027 to be just as strong as Q1.

Dell Technologies Inc. (NYSE:DELL) provides servers, storage, networking, PCs, software, cloud, edge, security, and services for enterprise, public-sector, consumer, and data-center customers.

While we acknowledge the risk and potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DELL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  10 Good Stocks to Invest in Now and 10 Most Undervalued US Stocks According to Hedge Funds. 

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1