KeyBanc Starts Coverage of Dell Technologies (DELL) Stock, Gives Sector Weight Rating

Dell Technologies Inc. (NYSE:DELL) is one of the Top 10 AI and Technology Stocks to Buy According to Analysts. On June 26, KeyBanc began coverage of the company’s stock with a “Sector Weight” rating, as reported by The Fly. As per the firm, Dell Technologies Inc. (NYSE:DELL) has executed well and there remains a strong revenue growth profile, operating efficiency, and ultimately a robust FCF/capital return profile. That being said, the firm opines that the revenue growth is being aided by lower margin AI Servers, where the firm expects gross margin pressure to continue.

Furthermore, the firm remains more skeptical of the magnitude of the PC refresh cycle, concluding that Dell Technologies Inc. (NYSE:DELL) is fairly valued at the current juncture. In Q1 2026, the company saw record servers and networking revenue of $6.3 billion, and it continues to experience healthy demand for its AI-optimized servers. Dell Technologies Inc. (NYSE:DELL) generated $12.1 billion in AI orders in Q1 2026 alone, exceeding the entirety of shipments in all of FY 2025 and leaving the company with a backlog to the tune of $14.4 billion. For FY 2026, the company expects revenue of between $101.0 billion – $105.0 billion, reflecting a rise of 8% YoY at the midpoint of $103.0 billion.

Dell Technologies Inc. (NYSE:DELL) plays a critical role in offering the hardware infrastructure and solutions critical for AI workloads, data centers, enterprise IT systems, and cloud computing.

While we acknowledge the potential of DELL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about this cheapest AI stock.

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