Across the last 12 months, the blue-chip chipmaker and semiconductor giant Nvidia (NASDAQ: NVDA) has been drawing a lot of attention – and generating a lot of enthusiasm – thanks to its incredible growth and pivotal role in the ongoing artificial intelligence (AI) boom.
Still, while it would be both inaccurate and unfair to say that NVDA’s star is waning, it has been far from the only technology company to have generated exceptional returns in the stock market, and one prominent computer company – Dell (NYSE: DELL) – has emerged as the only big tech firm to have outperformed the chipmaker in the last 12 months.
What is more, the two firms have recently apparently linked their fortunes – at least in part – given that they have entered into a partnership to jointly construct an AI factory.
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Given these recent developments and the strong growth both firms have undergone in recent months, a clear question emerges: is Dell or Nvidia the better investment?
DELL vs. NVDA: What do the analysts say?
Unsurprisingly, given Nvidia’s performance, experts are overwhelmingly bullish when it comes to the semiconductor giant. In fact, out of the 62 represented on TradingView, as many as 47 consider NVDA a ‘strong buy’ and another 9 deem it a ‘buy.’
Additionally, at the time of publication on May 30, Nvidia has 6 ‘neutral’ ratings, and no ‘sell’ or ‘strong sell’ recommendations.
Simultaneously, the overall price target for NVDA is rather conservative as it would see the company’s stock rise a further 2.96% in the coming 12 months to $1,182.28. The highest forecast, however, is substantially more bullish given that it predicts Nvidia to rocket 21.92% in the same time frame and reach $1,400 by May 2025.
The lowest price target is even more shocking, however, as it estimates NVDA shares will drop 42.96% in the coming 52 weeks from their price today of $1,141.43 to just $655.
The analysis of Dell is significantly more mixed. Indeed, while the stock boasts an overall ‘buy’ rating, there is a significantly greater spread when it comes to individual ratings.
Out of the 25 experts analyzed by TradingView, 15 believe DELL is a ‘strong buy,’ and 5 see it as a ‘buy.’ On the other hand, as many as 3 are ‘neutral,’ and 2 strongly recommend selling the stock.
The overall price target is, likewise, bearish, given that it would see Dell shares drop 12.80% from their press time price of $181.55 and reach $156.27 by May 2025.
Should DELL meet the most optimistic forecasts, however, it would generate substantially better returns than Nvidia as it would climb 33.92% to hit $240 in 12 months.
On the other hand, the biggest estimated downside is similar to the bearish forecasts for NVDA, as it would have Dell stock decline 45.37% to $98.
DELL vs. NVDA: Technical analysis
While there are some significant differences in analysts’ attitudes toward Dell and Nvidia, technical analysis (TA) based on the last 30 days of trading and retrieved from TradingView on May 30 seemingly favors the technology firms equally.
Nvidia is overall rated as a ‘strong buy’ with oscillators reading ‘buy’ and moving averages (MA) generally pointing toward ‘strong buy.”
Interestingly, the readings for Dell stock are nearly identical as it is overall rated as a ‘strong buy’ with moving averages showing the same recommendation and oscillators, as with Nvidia, being set at ‘buy.
Finally, it is worth pointing out that the predictions for and, indeed, the situation of both companies may soon change somewhat. On the one hand, Dell is expected to publish its earnings report after the closing bell on May 30, while Nvidia’s announced 10-for-1 stock split later in June may alter the market dynamics.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
