Dell Technologies (DELL) Touted as Long-Term AI Winner With Earnings Upside

Dell Technologies Inc. (NYSE:DELL) is one of the AI Stocks Making Headlines This Week. On September 16, Bernstein initiated the stock as “Outperform” stating the stock is best positioned for growth.

Apple, Dell, and HP Enterprise were all in focus on Tuesday as Bernstein noted that artificial intelligence should provide long-term benefits to the sector.

“Although near-term concerns of an AI-bubble persist, we see significant upside in the long-term for IT hardware,” analysts at the firm wrote. “While there is a huge range of outcomes, we land at $1.3T for enterprise inference in the 2030 base case (67% 25-30E CAGR). We see model improvement as the key leading indicator, and caution hyperscale capex may be a lagging indicator. In addition to being positive on the long-term outlook, we believe the early-signs look healthy in the near-term, and net out positive on the theme.”

Particularly for Dell, the firm noted that Dell is likely a long-term beneficiary from AI. AI servers should drive “significant” earnings and free cash flow growth.

“We see Dell (O) as well positioned to drive significant EPS and FCF growth from AI servers…”

Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.

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Disclosure: None.