Dell Technologies (DELL) is sitting at an interesting crossroads, with record interest in its AI server products alongside pressure from a global memory chip shortage and cautious margin commentary ahead of upcoming earnings.

Recent news has swung between optimism around Dell Technologies' record AI server demand and caution on margins as memory costs rise. The share price reflects that mix, with a 4.1% gain in the last session contrasting with a 90 day share price return of 12.16% and a year to date share price return of 8.07%, while the 5 year total shareholder return of 215.04% points to a strong longer term payoff for investors who stayed the course.

If Dell's AI story has caught your attention, you might also want to see what else is shaping this theme by checking out 34 AI infrastructure stocks as another way to spot potential opportunities in the space.

With Dell trading at US$117.49, sitting on an intrinsic discount of about 47% and roughly 37% below the average analyst price target, the question is whether this remains an underappreciated AI exposure or whether future growth is already priced in.

Most Popular Narrative: 28.1% Undervalued

The most followed narrative places Dell Technologies' fair value at $163.30 per share, well above the last close of $117.49, and anchors that view on long run AI and infrastructure demand.

Robust free cash flow and disciplined capital returns are viewed as providing downside support to the equity story. Some bullish analysts argue that the current price to earnings multiple does not fully reflect Dell's AI linked growth and cash generation.

If you are curious what sits behind that confidence in cash generation and AI demand, and how it translates into a higher fair value and future earnings power, the full narrative lays out the revenue path, margin profile, and valuation multiple it relies on. This allows you to test whether those building blocks line up with your own expectations.

Result: Fair Value of $163.30 (UNDERVALUED)

However, that upside story runs into real friction if higher memory costs keep squeezing hardware margins, or if demand for non AI servers and PCs stays softer than expected.

Build Your Own Dell Technologies Narrative

If you look at the numbers and come to a different conclusion, or just prefer your own homework, you can build a tailored view in minutes, Do it your way.

A great starting point for your Dell Technologies research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Dell has you thinking more seriously about your portfolio, do not stop at one stock. Cast a wider net and see what else stands out.

• Target quality at a discount by checking companies our screener tags as 53 high quality undervalued stocks that may offer stronger fundamentals than their current prices suggest.
• Strengthen your income stream by reviewing potential high yielders in our list of 13 dividend fortresses that could complement a growth focused core holding.
• Sleep a little easier by scanning 85 resilient stocks with low risk scores designed for investors who want potential upside while keeping an eye on risk indicators.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.