Dell is back on Josh Brown's Best Stocks list. Why more gains are ahead

Key Points:

• Dell (DELL) has recently broken out to new 52-week highs after a period of consolidation and previous decline, driven by strong demand linked to the AI capex boom and positive earnings reports from hyperscalers and Nvidia.
• Dell has transformed from a traditional PC manufacturer into a key provider of customizable AI and data center infrastructure solutions, with its Integrated Rack Scalable Systems and comprehensive customer services fueling rapid revenue growth.
• The company reported $64.1 billion in AI-related orders for FY26, a record $43 billion backlog, and expects AI server revenue to nearly double to $50 billion in FY27, driving overall revenue guidance of $138–142 billion and EPS growth of 23% this year.
• Technically, Dell’s stock has broken above prior resistance around $150–$155, with a developing golden cross signaling a strong uptrend, though short-term caution is advised due to elevated RSI and potential for price consolidation.
• The stock is currently trading at a forward 12x earnings multiple with a PEG ratio of 0.7, indicating attractive valuation relative to its expected growth, making it a compelling investment opportunity in the evolving AI infrastructure market.