Are you interested in investing in artificial intelligence stocks? Dell Technologies may be a company worth considering. Founded in 1988, Dell has emerged as a major player in the AI server business. At Extreme Investor Network, we see potential in adding Dell to our investment portfolio, but with a cautious approach that takes into account both technical indicators and long-term growth prospects.
One key factor to consider is Dell’s valuation, which remains reasonable with expected GAAP earnings of $4.68 in 2025, trading at 26 times earnings, and 16.50 times expected EPS in 2025. Additionally, Dell recently raised its dividend by 20%, signaling confidence in the company’s future growth potential.
However, it’s important to be aware of potential headwinds facing Dell, such as concerns about a pullback in AI infrastructure spending, inventory buildup, and supply chain constraints. By analyzing Dell’s inventory trends and price movements, investors can gain valuable insights into the company’s performance.
Looking at the broader market landscape, Dell’s stock rotation compared to industry peers like Apple and Super Micro Computer can provide further context for making investment decisions. The technical price chart for Dell shows a consolidation pattern, indicating potential buying opportunities on pullbacks.
As founder of Inside Edge Capital, LLC, Todd Gordon advises a cautious approach to investing in Dell, with a suggested entry point and stop loss level based on technical analysis. Before making any investment decisions, it’s important to conduct thorough research and consult with a financial advisor.
For more insights and recommendations on investing in AI and technology stocks, stay tuned to Extreme Investor Network for expert analysis and actionable investment strategies. Remember, investing involves risks, so always proceed with caution and seek professional advice when needed.
