Dell Technologies (DELL) has earned a vote of confidence from TipRanks’ cutting-edge A.I. stock analysis tool. According to this analysis, Dell scored 70 out of 100 with an Outperform rating. Notably, TipRanks’ A.I. Stock Analysis offers automated, data-driven insights across key factors like financials, technicals, and sentiment, helping investors of all levels quickly assess a stock’s growth potential.
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TipRanks AI Backs Dell for Growth
For Dell, TipRanks’ A.I. analysis score and rating are driven by notable revenue gains and healthy earnings contributions from its Infrastructure Solutions Group (ISG) segment. This segment provides enterprise clients with critical IT infrastructure solutions, including servers, storage, and networking products. While the company faces headwinds such as elevated debt levels and softness in the consumer market, its strategic emphasis on AI integration and enterprise infrastructure positions it well for future growth.
On the technical front, indicators present a mixed picture, but Dell’s reasonable valuation support its investment appeal.
Dell’s ISG Shines with Robust Growth
According to Main Street Data, Dell generated $11.4 billion in revenue from the ISG segment in the fiscal fourth quarter ended January 31, 2025, representing 22% year-over-year growth and contributing over 45% of total company revenue.
On the profitability front, the ISG segment delivered $2.05 billion in EBIT (earnings before interest and taxes), marking an impressive 40% year-over-year increase.
Overall, Dell’s strong ISG performance suggests the company is effectively tapping into rising demand for AI-related solutions, paving the way for sustained long-term growth opportunities.
Is DELL Stock a Good Buy Now?
According to TipRanks, DELL stock has received a Strong Buy consensus rating, with 12 Buys and three Holds assigned in the last three months. The average Dell share price target is $132.23, suggesting a potential upside of 18% from the current level.
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