Dell Technologies Inc. (NYSE:DELL) is identified as one of the most undervalued AI stocks to buy now, according to analysts and hedge fund sentiment. The company’s low forward price-to-earnings (PE) ratio further solidifies its position on this list.
Despite rising memory costs reaching record highs, analysts have differing opinions on Dell Technologies Inc. (NYSE:DELL). However, BofA remains optimistic, citing the company’s supply chain discipline and structural cost controls as potential advantages over its competitors.
Looking ahead to the upcoming fourth-quarter earnings release on February 26, 2026, analysts at BofA anticipate a strong performance from Dell Technologies Inc. (NYSE:DELL), despite the challenges posed by increasing costs. In response to the uncertainties surrounding cost trends, the firm has adjusted its target price from $150 to $135. Additionally, BofA revised its FY27 EPS estimate downward by $0.86 to $10.00 in the company’s valuation model.
As of February 23, 2026, BofA maintains a ‘Buy’ rating on Dell Technologies Inc. (NYSE:DELL), expressing confidence in the company’s ability to navigate the memory headwinds effectively.
In an effort to address the global memory shortage, Dell Technologies Inc. (NYSE:DELL) has partnered with China’s ChangXin Memory Technologies to test and approve DRAM chips. Market observers predict that memory prices will remain elevated throughout the year, making Dell’s move to diversify suppliers crucial in alleviating near-term margin pressures.
Specializing in end-to-end IT infrastructure and client computing solutions for both enterprise and consumer markets globally, Dell Technologies Inc. (NYSE:DELL) continues to focus on delivering innovative technology solutions.
While Dell presents investment potential, other AI stocks may offer greater upside and less downside risk. For those seeking an extremely undervalued AI stock poised to benefit from current economic trends, exploring the free report on the best short-term AI stock is recommended.
For more insights on technology stocks and day trading options, check out our articles on the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts and 7 Most Volatile Stocks Under $5 for Day Trading.
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