Goldman Sachs Sees a Tough Backdrop for IT Stocks, but Says You Can Still Win with These 3 ‘Strong Buy’ Names

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• Dell will continue to be a leader in the AI server OEM market for neocloud customers, supported by differentiated engineering expertise and services capabilities.

  80% confidence

• Goldman Sachs rates Dell a Buy with a 12-month price target of $165, implying 48.5% upside.

  80% confidence

• Goldman Sachs rates TD Synnex as Buy with a $180 price target indicating 23% potential upside

  80% confidence

• Goldman Sachs sees upside to Dell's AI server revenue outlook to grow at 20-25% CAGR (F2026-30) at mid-single-digit EBIT margins, driven by upward capex revisions from tier-two cloud providers and demand from sovereign and enterprise customers

  80% confidence

• TD Synnex has a goal of returning 50-75% of free cash flow to shareholders in buybacks and dividends, though ramping Hyve may weigh on near-term free cash flow generation.

  80% confidence

• TD Synnex's core distribution business is well positioned to benefit from growth in IT spending driven by the ongoing refresh in campus networking and traditional data center infrastructure.

  80% confidence

• Dell's self-help actions to gain profitable share should partially offset any consolidated margin pressure from greater AI server mix or increased commodity costs.

  80% confidence

• TD Synnex's core distribution business is well positioned to benefit from growth in broader IT spending driven by refresh in campus networking and traditional data center infrastructure

  80% confidence

• TD Synnex's Hyve billings growth will continue to outpace the overall company driven by ramping programs with its two existing hyperscale customers

  80% confidence

• TD Synnex has a strong free cash flow profile with a goal of returning 50-75% of FCF to shareholders in buybacks and dividends, though ramping Hyve may weigh on FCF generation near term

  80% confidence

• Penguin Solutions' Integrated Memory business fiscal 2026 revenue is expected to grow 20-35% year-over-year, benefiting from higher industry pricing in a supply-constrained environment.

  80% confidence

• Penguin Solutions' 25+ years of HPC experience will position the company favorably to address growing demand in enterprises, sovereigns/public sector, and neoclouds verticals

  80% confidence

• Goldman Sachs is selectively positive on stocks best exposed to categories still in the expansion phase of their multi-year refresh cycle, specifically x86 servers, enterprise storage, and campus networking

  80% confidence

• Goldman Sachs rates Dell as Buy with a 12-month price target of $165

  80% confidence

• Penguin Solutions' 25+ years of experience in high-performance computing will position the company favorably to address growing demand in enterprises, sovereigns/public sector, and neoclouds verticals.

  80% confidence

• Hyve billings growth will continue to outpace the overall TD Synnex company driven by ramping programs with its two existing hyperscale customers.

  80% confidence

• Goldman Sachs rates TD Synnex a Buy with a $180 price target indicating 23% upside potential.

  80% confidence

• TD Synnex carries a Strong Buy consensus rating based on 7 reviews (6 Buys, 1 Hold), with average price target of $178.57

  80% confidence

• Penguin Solutions has a unanimous Strong Buy consensus rating based on 4 recent positive analyst reviews, with an average price target of $25.75.

  80% confidence

• Goldman Sachs rates Penguin Solutions as Buy with a $25 price target implying 27% upside

  80% confidence

• Dell's self-help actions to gain profitable share should partially offset any consolidated margin pressure from greater AI server mix or increased commodity costs

  80% confidence

• Goldman Sachs rates Penguin Solutions a Buy with a $25 price target suggesting 27% upside.

  80% confidence

• Goldman Sachs is selectively positive on IT hardware stocks best exposed to categories still in the expansion phase of their multi-year refresh cycle, specifically x86 servers, enterprise storage, and campus networking.

  80% confidence

• Dell carries a Strong Buy consensus rating based on 16 analyst reviews: 13 Buys, 2 Holds, 1 Sell, with average price target of $164

  80% confidence

• Penguin Solutions' non-hyperscaler Penguin Computing business was up 75% year-over-year in fiscal 2025.

  80% confidence

• Penguin Solutions Integrated Memory business F2026 revenue expected to grow 20-35% YoY from higher industry pricing in supply-constrained environment

  80% confidence

• Dell Technologies has a Strong Buy consensus rating based on 16 analyst reviews: 13 Buys, 2 Holds, 1 Sell, with an average price target of $164.

  80% confidence

• Goldman Sachs sees upside to Dell's outlook for AI server revenue to grow at a 20-25% CAGR from FY2026 to FY2030 at mid single digit percent EBIT margins.

  80% confidence

• TD Synnex has a Strong Buy consensus rating from 7 analyst reviews (6 Buys, 1 Hold), with an average price target of $178.57.

  80% confidence

• Penguin Solutions carries a unanimous Strong Buy consensus rating based on 4 recent positive analyst reviews, with average price target of $25.75

  80% confidence

Data points we hold from this source