Dell's Stock Price Has Nearly Doubled in 2024. Is It Still a Buy?
Investors might be concerned that it's too late to buy Dell (NYSE: DELL) stock after its big gains in recent months. While the stock has nearly doubled so far in 2024, the company may be in the early stages of an industry boom period, and now's a great time to analyze this company's opportunities and valuation to figure out if it's still a good time to buy.
Dell stock jumped 8% in January, followed by a 14% gain in February. It kept that momentum going in March with a 21% gain, and notched a 9% gain in April. The stock is up 95% year to date. Those are big gains in a short time frame for an established, mature company. Many investors will take that as a sign that it's too late to get on board, and that any upside potential is already fully reflected in share price. Alternatively, this could signal the early stages of a major turnaround for a stock that was trading at an unnecessary discount.
As has been the case with other tech stocks, artificial intelligence (AI) is driving the hype around Dell. The company is probably best known for producing personal computers for consumers, but it also has a large server business. AI applications require significant computing power, and Dell is hopeful that tech companies will need to maintain significant on-premises server resources. The company is in a prime position to capitalize as a leader of the server market, just ahead of noteworthy peers including Hewlett Packard Enterprise, Super Micro Computer, and .
Source Fool.com
