Potentially Overlooked Artificial Intelligence Company Could Be Worth Investing in by 2025
Looking for an underrated AI stock to buy in 2025, beyond the behemoths like Nvidia? Consider computer maker Dell Technologies (DELL 0.81%). Here's why this unsung hero could outperform in the upcoming years.
Time for a Big Upgrade Cycle
The last few years have seen eager consumers holding back on upgrading their phones and computers, faced with economic challenges and rising inflation. But things may be changing in 2025, especially for personal computers (PCs).
Upgrades could be driven by new, AI-enabled PCs hitting the market, providing consumers with compelling reasons to upgrade, and take advantage of advanced features and cutting-edge tech. Also, a majority of Windows PCs are still running Microsoft's Windows 10, with support ending on Oct. 14. While this doesn't render the machines obsolete, they'll miss out on security upgrades. With AI arming not just users but hackers too, the need for better protection could nudge more users towards upgrading their machines.
Upgrading to a new computer offers even more benefits: not only does it bring a new OS but also AI-powered capabilities. Make sense to make the jump this year, and boost Dell's PC sales.
Strong PC Sales = Dell’s Time to Shine
Let's talk numbers. Dell's client solutions segment, which includes PC sales, has see-sawed in the last quarter. Revenue declined by 1% while Dell's servers and networking sales shot up by 58%. Dell's PC sales need a boost to maximize growth and create a positive impact on investors.
Dell: A Bargain Buy in 2025
Despite its 51% stock price growth in 2024, Dell still looks like a bargain buy. Its forward price-to-earnings multiple is a mere 12. A low P/E-to-growth ratio of 0.6 underscores the stock's promising growth potential over the next five years.
Add Dell's robust server sales, an upcoming PC refresh cycle, and potential catalysts, and it’s no surprise to see 2025 as a banner year for Dell Technologies, making it a smart buy for savvy investors.
Sources:
- Dell Technologies (2025 Q3 Earnings Call Transcript)
- CES 2025: Dell Unveils AI PC Portfolio and Platform to Empower Developers
- Id.
- Dell Technologies (2025 Annual Report)
- Dell Technologies Announces Elite Sponsorship at NVIDIA GTC 2025
- Dell Technologies Boosts Dividend, Ups Financials Outlook for 2026
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In light of the upcoming PC upgrade cycle due to AI-enabled devices and the end of Windows 10 support, investors might consider allocating some of their money towards investing in Dell Technologies to potentially capitalize on its strong PC sales. With Dell's forward price-to-earnings multiple remaining low at 12 and a promising growth potential over the next five years, the company appears to be a smart and potentially profitable investment in the field of finance.
