Dell Technologies (DELL) Touted as Long-Term AI Winner With Earnings Upside

Core Insights - Dell Technologies Inc. is highlighted as a key player in the AI sector, with Bernstein initiating coverage with an "Outperform" rating, indicating strong growth potential for the stock [1] - The long-term outlook for IT hardware, including AI-related products, is positive, with a projected enterprise inference market size of $1.3 trillion by 2030, reflecting a compound annual growth rate (CAGR) of 67% from 2025 to 2030 [2] - Dell is expected to benefit significantly from AI servers, which are anticipated to drive substantial earnings and free cash flow growth [3] Company Analysis - Dell Technologies provides a range of IT solutions, including servers, storage, networking, and personal computing devices, catering to both businesses and consumers globally [3] - Analysts believe that Dell is well-positioned to achieve significant earnings per share (EPS) and free cash flow (FCF) growth driven by the demand for AI servers [3] Industry Outlook - Despite concerns regarding a potential AI bubble in the near term, analysts express optimism about the long-term growth prospects for the IT hardware sector [2] - The early signs in the AI market appear healthy, suggesting a positive net outlook for the theme of AI integration in technology [2]