Not Nvidia. Not Micron. This Artificial Intelligence (AI) Stock Will Be 2027’s Biggest Winner After the Latest Tech Sell-Off
Key PointsDell Technologies is growing at a terrific pace due to the fast-growing demand for AI servers.
Following the recent sell-off in the technology sector, various stocks have become more appealing, such as Nvidia and Micron Technology. However, one AI stock that has particularly caught my eye is Dell Technologies (DELL), which is trading at a very discounted 12 times forward earnings. This valuation is attractive considering Dell's non-GAAP earnings per share (EPS) tripled in the previous quarter to $7.04.
This tech giant is capitalizing on the increasing demand for AI-optimized servers and storage systems, which are primarily developed by Nvidia and Micron.
Dell's recent AI server orders have surged by $60.9 billion in the second quarter of fiscal 2027, exceeding its previous quarter's revenue of $16.4 billion. This surge has also led to an impressive AI server backlog of $95 billion. Moreover, Dell's traditional servers and networking products are also experiencing robust demand, with revenue climbing by 122% year-over-year to $10.5 billion.
The company has secured $131.7 billion in AI server orders over the past year, indicating a significant acceleration in demand for Dell's AI solutions.
Analysts anticipate a 40% annual EPS growth for Dell in the long term, which could lead to a stock price of $630 by the end of fiscal 2028, representing a 72% increase from its current price. This makes Dell an attractive investment opportunity, particularly given its recent pullback. As our analyst team believes Dell's long-term growth potential is substantial, it could be a smart move to buy more shares during this dip.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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