Dell is a buy as the AI sector takes a hit, Jim Cramer says

As the market sell-off continues, CNBC's Jim Cramer suggested Dell is a good stock to buy even while investors lose faith in companies that stand to profit from the artificial intelligence boom.
"I want to bet that things aren't as bad as the AI infrastructure space would indicate, as the actions of these stocks would have you believe," he said. "And, after evaluating all options, I got to tell you, I think Dell is the way to play it."

CNBC's Jim Cramer reviewed Dell as a stock to buy despite investors' diminishing faith in companies tied to the artificial intelligence boom.

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"I want to bet that things aren't as bad as the AI infrastructure space would indicate, as the actions of these stocks would have you believe," he said. "And, after evaluating all options, I got to tell you, I think Dell is the way to play it."

Cramer noted that Dell stock has declined along with peers HP Inc and Hewlett Packard Enterprise, as well as a host of other companies related to artificial intelligence. He contributed this decline not only to concerns sparked after Chinese startup DeepSeek claimed it could run advanced AI technology with less money and energy than the competition, but also to a general sense of uncertainty about the future.

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Dell is the best of its peers, according to Cramer. While both Dell and HP have weathered disappointment as the AI-powered PC refresh cycle largely failed to develop, he pointed out that Dell has a large enterprise component. Although Wall Street wasn't impressed with either report, Cramer said he preferred Dell's recent quarter over that of Hewlett Packard. He noted that Hewlett Packard's management admitted the company could have executed business better, and it reported negative cash flow.

But owning Dell is not without risks, Cramer continued. The company will likely take a hit due to increased tariffs, he said, adding that the stock will sink if the AI investment boom doesn't play out in the way he expects. But he said he thinks some potential negatives are already baked into Dell's current share price, which has declined more than 30% from recent highs following the election.

"I still believe in the AI infrastructure thesis," Cramer said. "And I think the selling in this group has gotten overdone, creating some buying opportunities."