Jim Cramer applauded Barclay's upgrade of Dell Technologies Inc (NYSE:DELL) on Tuesday as he believes the sell-off has run its course.
What Happened: Barclays analyst Tim Long upgraded Dell from Underweight to Equal-Weight and set a price target of $97, noting that much of the "AI hype" has been washed out of the name, minimizing the downside risk.
Tuesday on CNBC's "Squawk On The Street," Cramer said he's been waiting for an analyst note like the one from Barclays.
"Historically, you want to buy this company after it's been hammered. Regardless, it's just been right to do that, so I agree with Barclays. This stock should be bought right here," Cramer said.
Dell shares are down about 25% over the past month. Cramer highlighted Dell's low price-to-earnings ratio, which currently sits around 12, according to Benzinga Pro.
Cramer reminded listeners that Dell CEO Michael Dell was "singled out" at NVIDIA Corp's (NASDAQ:NVDA) GTC 2024 event by Nvidia CEO Jensen Huang as the recommended person to do business with.
"So I think Dell is a good idea here. I really do," Cramer said.
Cramer noted Barclays didn't raise its estimates in its new note to clients this week. He went on to say that he would buy Dell stock at current levels regardless given its positioning in the AI space.
Other AI players are facing pricing pressures but Dell plays in the services realm, he said, reiterating that the company is doing a "fantastic job" and has "great contacts" in the enterprise.
Both Dell and Nvidia are due to report second-quarter financial results at the end of August. Dell is expected to report earnings of $1.68 per share and revenue of $24.139 billion, while Nvidia is expected to report earnings of 64 cents per share and revenue of $28.464 billion, according to estimates from Benzinga Pro.
DELL Price Action: Despite the recent fall, Dell shares are up about 31% year-to-date. The stock was up 5.37%, trading at $100.41 at the time of publication Tuesday, according to Benzinga Pro.
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