DELL, CDNS, INTU: Which AI-Exposed Tech Stock Is Best?
The tech sector has been hot and full of surprises, with overlooked companies like Dell (NYSE:DELL) going parabolic in what seemed like an instant. Undoubtedly, AI technology stands to benefit more than just the “Magnificent Seven” stocks. In 2024, we could see the AI wave lift the other boats navigating the rough tech seas. Therefore, let’s use TipRanks’ Comparison Tool to analyze three tech stocks (DELL, CDNS, and INTU) that could turn AI innovation into meaningful share price drivers over the next year.
Analysts view each stock quite favorably at this juncture, even after their scorching-hot past-year performances.
Dell Technologies (NYSE:DELL)
Dell knocked one out of the park when it reported its latest quarterly result, sending shares surging around 30% in a day. High demand for AI servers was a significant reason why Dell was able to pole-vault over expectations on the bottom line. Combined with a 20% dividend hike and upbeat (and AI-heavy) guidance for its Fiscal Year 2025, it seems like many investors are just starting to discover the AI potential to be had in the firm.
I’ll admit that DELL stock was one of the names I scratched off my tech watchlist in favor of some of the bigger and more prominent players in the AI scene. Although shares of DELL have more than tripled over the past year (up 210%), they still don’t look all too expensive at 25.0 times trailing price-to-earnings (P/E) or 15.6 times forward P/E, especially given the magnitude of its AI tailwinds. For these reasons, I’m inclined to stay bullish on DELL, just like the analyst community.
As exciting and emerging terms like edge AI, AI PCs, and neural processing units (NPUs) look to take off in 2024, Dell Technologies stock could be one of the companies next in line to capture the heart of upside-seeking investors. With its AI-capable Precision 3000 and 5000 workstations, Dell stands out as one of the major potential beneficiaries as AI begins to move from the cloud toward the edge.
What Is the Price Target of DELL Stock?
Dell stock is a Strong Buy, according to analysts, with 11 Buys, one Hold, and one Sell assigned in the past three months. The average DELL stock price target of $115.77 implies 5.3% upside potential.
Cadence Design Systems (NASDAQ:CDNS)
Cadence Design Systems is a far pricier play than Dell, with shares currently trading at 81.5 times trailing P/E. On the price-to-sales (P/S) front, shares look even pricier at a whopping 20.4 times P/S. Indeed, CDNS stock goes for a massive premium to the application software industry average. But Cadence is a leading intelligence system design play that’s really in a league of its own.