Why Dell Technologies (DELL) Is Among the Top Undervalued Tech Stocks to Buy According to Hedge Funds?

Dell Technologies (DELL) has been making waves in the tech industry, catching the attention of hedge funds and analysts alike. The company's strong financial performance, growth in AI server shipments, and undervalued stock price have positioned it as one of the top tech stocks to buy, according to hedge funds. In this article, we will delve into the reasons why DELL is an attractive investment opportunity and explore the data that supports this claim.



DELL's financial performance has been impressive, with revenue increasing by 11.02% from 2023 to 2024, reaching $88.43 billion. Earnings also increased by 83.06% to $7.98 billion during the same period. This growth is driven by the company's focus on AI and its ability to adapt to changing market conditions, such as the shift towards remote work.

One of the key factors contributing to DELL's growth is its strong performance in AI server shipments. The company is expected to experience revenue growth of ~9% in 2024, driven by AI server shipments. This growth is offsetting challenges in the PC segment, where revenues are expected to decline by 1% in 2024. DELL's focus on AI and its ability to capitalize on the growing demand for AI servers have positioned it well for future growth.

DELL's valuation is attractive compared to its peers and the broader tech market. The company's Price-to-Earnings (PE) ratio is 18.6x, which is lower than the average PE ratio of its peers (28x) and the Global Tech industry average (21.3x). This suggests that DELL is relatively undervalued compared to its peers and the broader tech market. Additionally, DELL's Enterprise Value/Revenue ratio is 1x, which is lower than the average of its peers (not provided) and the Global Tech industry average (not provided). This indicates that DELL's valuation is more favorable compared to its peers and the broader tech market.



DELL's strong financial performance, growth in AI server shipments, and undervalued stock price have positioned it as an attractive investment opportunity for hedge funds. The company's focus on AI and its ability to adapt to changing market conditions have driven its growth and set it apart from its peers. With a PE ratio and Enterprise Value/Revenue ratio that suggest DELL is undervalued, the company offers an attractive entry point for investors looking to capitalize on the growth of the AI market.

In conclusion, DELL's strong financial performance, growth in AI server shipments, and undervalued stock price make it an attractive investment opportunity for hedge funds. The company's focus on AI and its ability to adapt to changing market conditions have driven its growth and positioned it well for future success. With a PE ratio and Enterprise Value/Revenue ratio that suggest DELL is undervalued, the company offers an attractive entry point for investors looking to capitalize on the growth of the AI market.