1 Incredibly Cheap Artificial Intelligence (AI) Stock to Buy Hand Over Fist Before It Starts Skyrocketing

Core Viewpoint - Dell Technologies has faced a challenging year with a 23% decline in stock prices, significantly underperforming the S&P 500 index, and the latest quarterly report did not improve the situation [1][2] Group 1: Financial Performance - Dell's stock fell nearly 5% following the release of its fiscal 2025 fourth-quarter results, which showed mixed results and a lower-than-expected revenue growth forecast for the upcoming fiscal year [2] - The company reported a 29% increase in ISG revenue for fiscal 2025, outpacing the overall revenue growth of 8% [4] - Dell anticipates an 8% revenue increase for the upcoming year, projecting total revenue of $103 billion, with adjusted earnings expected to grow by 14% to $9.30 per share [9] Group 2: AI and Growth Drivers - The ISG business is benefiting from the growing demand for AI-optimized servers, with Dell's order backlog for AI servers reaching $9 billion [5][4] - The company is well-positioned to capitalize on the projected $500 billion investment in AI data centers and the anticipated 40% increase in capital spending by U.S. tech giants in 2025 [6][7] - Dell's CSG business is expected to recover, with growth projected in the low- to mid-single digits, aided by the introduction of AI PCs and an aging installed base [8] Group 3: Valuation and Investment Potential - Dell stock is trading at 16 times trailing earnings and 11 times forward earnings, representing a significant discount compared to the S&P 500 index's earnings multiple of 24 [10] - The company's PEG ratio stands at 0.54, indicating that the stock is undervalued based on its potential growth [11] - Analysts project a 52% increase in Dell's stock price based on a 12-month median price target of $145, suggesting strong long-term growth potential [11][12]