| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $109.56 | 74.37B | 6.38 | 1.92% | Technology | 120,000 | 2 days ago | |||
| $41.56 | 24.80B | 1.84 | 0.00% | Technology | 0 | 2 days ago |
You probably remember **Dell Technologies** [(NYSE: DELL)](https://marketmonitors.wpenginepowered.com/stock/quote/DELL/) as the sturdy but unexciting PC maker from the earlier days of the tech boom. But times have changed dramatically. Today, Dell is at the forefront of groundbreaking AI advancements. The company is rapidly evolving from its legacy stereotype of being a technological dinosaur into a nimble, innovative player making substantial waves in the AI server infrastructure market.
So, if you’re an investor with a keen eye for breakthrough opportunities, buckle up because the transformation story unfolding at Dell Technologies offers both vibrant potential and lucrative prospects.
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Few names in technology have undergone a transformation as dramatic as Dell. Historically seen as a stagnant giant, the company has recently pivoted to embrace cutting-edge AI technologies. Dell’s strategic focus on AI server infrastructure is more than just a rebranding. It’s a complete overhaul that aligns the company with one of the fastest-growing sectors in tech.
This isn’t just a mild tweak to their business model. We’re talking about a full-scale evolution. Dell’s commitment to developing AI-ready servers is making headlines—and for all the right reasons. With the AI boom reshaping industries, Dell’s insistence on innovation is poised to pay off spectacularly.
Invaluable Partnerships
You can’t discuss Dell’s metamorphosis without highlighting their high-profile partnerships. In June, **Dell Technologies** [(DELL)](https://marketmonitors.wpenginepowered.com/stock/quote/DELL/) made waves when they announced a collaboration with **Nvidia**, the undisputed leader in AI chip technology. This partnership aims to build advanced AI infrastructure, including half of the AI-supercomputer racks for xAI’s Grok chatbot, founded by Elon Musk.
“We’re building a Dell AI factory with @nvidia to power @grok for @xai @elonmusk.”
Michael Dell
The stakes are high; teaming up with Nvidia not only enhances Dell’s technological credibility but also places them directly in the pathway of lucrative opportunities in AI technology. Elon Musk’s involvement through xAI, aimed at competing with OpenAI’s ChatGPT, adds to the buzz and validates Dell’s strategic direction.
Additionally, Musk’s confirmation that Dell is assembling half of the AI-supercomputer racks for xAI, with **Super Micro Computer** [(NASDAQ: SMCI)](https://marketmonitors.wpenginepowered.com/stock/quote/SMCI/), building the other half, adds substantial weight to Dell’s new narrative.
Analyst Ratings for Dell Technologies [(NYSE: DELL)](https://marketmonitors.wpenginepowered.com/stock/quote/DELL/)
| **Consensus Rating** | **Average Price Target** | **Current Price** | **Potential Gain** |
|———————-|————————-|——————|———————|
| Strong Buy | $157.65 | $139.76 | 13.95% |
Analysts are generally optimistic about **Dell Technologies**, with a strong buy consensus and an average price target suggesting a significant potential gain. The company’s financial performance has shown strengths in earnings and sales forecasts, consistently beating estimates and outperforming its industry averages.
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Editor's Note: Analysis and insight for this article were originally sourced from our friends at InvestorPlace
Believe it or not, despite all these successes and high-profile partnerships, Dell remains incredibly undervalued compared to its peers. For the savvy investor, this undervaluation presents a golden opportunity.
Compelling Valuation
Dell’s push into AI-ready servers is strategically significant. As AI technology becomes integrated into various sectors, the demand for specialized servers skyrockets. Dell’s entry into this market is not just timely but also calculated, allowing the company to capitalize on the growing tide.
Undervaluation Metrics
To truly understand Dell’s undervaluation, let’s look at the numbers. Dell’s trailing 12-month GAAP P/E ratio stands at 28.27x, which is below the sector median of 30.22x. But it gets even better. When compared to **Super Micro Computer’s** whopping 46.18x, Dell looks like a steal. Similarly, Dell’s P/S ratio is a mere 1.1x, significantly under the sector median of 2.98x and Super Micro’s 3.8x.
What does this tell us? Dell’s stock price has substantial room for growth, making it an attractive buy for value investors. The market hasn’t fully priced in Dell’s future growth prospects, especially given its recent strategic moves.
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Established Leader but Limited Growth
Now, contrast this with **Super Micro Computer** [(NASDAQ: SMCI)](https://marketmonitors.wpenginepowered.com/stock/quote/SMCI/). While Super Micro is also involved in building AI-supercomputer racks and has a deal with xAI, its market valuation tells a different story. Super Micro’s P/E ratio is a hefty 46.18x and its P/S stands at 3.8x, indicating that it might be overpriced at current levels.
Super Micro Computer is already recognized as a leading player in AI infrastructure. This established status means there’s limited potential for dramatic appreciation compared to Dell. When a company is already priced for perfection, the upside becomes inherently limited. Thus, while Super Micro is a stable leader, it doesn’t quite offer the explosive growth potential that Dell does.
Analyst Ratings for Super Micro Computer [(NASDAQ: SMCI)](https://marketmonitors.wpenginepowered.com/stock/quote/SMCI/)
| **Consensus Rating** | **Average Price Target** | **Current Price** | **Potential Gain** | **Number of Ratings** |
|———————-|————————-|——————|——————-|———————-|
| Moderate Buy | $1,066.25 | $819.35 | 30.13% | 9 |
