Which stock, DELL or NVDA, is the optimal choice for purchase in 2024?

Over the past year, Nvidia, the prominent blue-chip chipmaker and semiconductor giant, has garnered a great deal of attention and excitement due to its impressive growth and significant role in the ongoing artificial intelligence (AI) boom.

However, while it would be inaccurate to say that Nvidia’s success is fading, it is not the only technology company that has delivered exceptional returns in the stock market. In fact, Dell, a prominent computer company, has emerged as the only major tech firm to outperform Nvidia in the last 12 months.

Interestingly, these two companies have recently formed a partnership to jointly build an AI factory, suggesting a potential link between their fortunes.

Given these recent developments and the strong growth experienced by both firms, it begs the question: which is the better investment, Dell or Nvidia?

According to analysts, the overwhelming consensus is bullish on Nvidia. Out of 62 experts on TradingView, 47 consider Nvidia a ‘strong buy’ and another 9 deem it a ‘buy.’ There are also 6 ‘neutral’ ratings, with no ‘sell’ or ‘strong sell’ recommendations at the time of publication. The overall price target for Nvidia suggests a modest 2.96% increase in the stock’s value over the next 12 months to $1,182.28. However, the highest forecast predicts a much more bullish outcome, with Nvidia potentially soaring 21.92% to reach $1,400 by May 2025. On the other hand, the lowest price target estimates a significant 42.96% decline in Nvidia shares over the next 52 weeks, from the current price of $1,141.43 to just $655.

The analysis of Dell, however, presents a more mixed picture. While the stock has an overall ‘buy’ rating, individual ratings vary significantly. Out of the 25 experts analyzed by TradingView, 15 believe Dell is a ‘strong buy’ and 5 consider it a ‘buy.’ Meanwhile, 3 experts are ‘neutral,’ and 2 strongly recommend selling the stock. The overall price target for Dell predicts a 12.80% decline in the stock’s value to $156.27 by May 2025, based on the current price of $181.55. However, if Dell were to meet the most optimistic forecasts, it could generate a substantial 33.92% return, reaching $240 in 12 months. Conversely, the most bearish estimate suggests a 45.37% decline in Dell stock to $98.

When it comes to technical analysis, both Dell and Nvidia receive favorable ratings. Nvidia is rated as a ‘strong buy,’ with oscillators reading ‘buy’ and moving averages indicating a ‘strong buy.’ Similarly, Dell is also rated as a ‘strong buy,’ with moving averages showing the same recommendation and oscillators set at ‘buy.’

It’s important to note that both companies’ situations and predictions may soon change. Dell is expected to release its earnings report after the closing bell on May 30, while Nvidia’s announced 10-for-1 stock split in June could impact market dynamics.

In conclusion, while Nvidia has been a standout performer in the technology sector, Dell has also delivered exceptional returns and is the only major tech firm to have outperformed Nvidia in the past year. Analysts remain bullish on both companies, but their price targets and future performance predictions vary. Ultimately, investors should carefully consider the available information and conduct further research before making any investment decisions.