DELL vs. NVDA: Which stock should investors consider buying in 2024?
Over the past year, Nvidia has gained significant attention and enthusiasm due to its impressive growth and role in the AI boom. However, Dell has emerged as the only tech firm to outperform Nvidia in the stock market. Recently, the two companies have entered into a partnership to build an AI factory together. This raises the question of which company is a better investment.
Analysts overwhelmingly favor Nvidia, with 47 out of 62 on TradingView considering it a ‘strong buy’ and another 9 rating it as a ‘buy.’ There are no ‘sell’ or ‘strong sell’ recommendations for Nvidia. The price target for Nvidia suggests a conservative 2.96% rise in the next 12 months, but the highest forecast predicts a 21.92% increase to $1,400 by May 2025. On the other hand, the lowest price target estimates a 42.96% drop in Nvidia shares to $655.
The analysis of Dell is more mixed. While it has an overall ‘buy’ rating, individual ratings vary significantly. Out of 25 experts, 15 believe Dell is a ‘strong buy,’ 5 see it as a ‘buy,’ 3 are ‘neutral,’ and 2 strongly recommend selling the stock. The price target for Dell suggests a 12.80% drop to $156.27 by May 2025, but the most optimistic forecast predicts a 33.92% increase to $240 in 12 months. The downside estimate is a 45.37% decline to $98.
In terms of technical analysis, both Nvidia and Dell receive favorable ratings. Nvidia is rated as a ‘strong buy’ with ‘buy’ oscillators and ‘strong buy’ moving averages. Dell receives nearly identical ratings, with an overall ‘strong buy’ rating, the same moving average recommendation, and ‘buy’ oscillators.
It’s important to note that the situation for both companies may change in the near future. Dell is expected to release its earnings report soon, and Nvidia’s upcoming 10-for-1 stock split in June could impact market dynamics.
