Dell (DELL) is retreating 6% after the desktop and server maker reported higher-than-expected fourth-quarter earnings per share but delivered Q4 revenue that was slightly below analysts' average estimate.

Furthermore, the company's Q1 guidance missed expectations. However, multiple analysts remained bullish on DELL in the wake of its results.

A team of IT experts discussing the latest network security trends over a laptop screen.

The Highlights of Dell's Q4 Results and Guidance

The company reported Q4 earnings per share, excluding some items, of $2.68, versus analysts' average estimate of $2.52. However, its revenue came in at $23.9 billion, which was $640 million below analysts' average outlook.

On the guidance front, Dell expects Q1 EPS of $1.65, well below the mean outlook of $1.78. Further, Dell is anticipating Q1 sales of $22.5 billion to $23.5 billion, below analysts' average estimate of $23.63 billion.

Multiple Analysts Remain Bullish on DELL Stock

Bank of America reported that the demand for Dell's AI-related products is still powerful, and the bank predicts that the company will raise its guidance as its current fiscal year progresses. Bank of America kept a $150 price target and a Buy rating on the name.

Morgan Stanley noted that the growth of Dell's AI server business is accelerating, while its operating margins are not eroding. The investment bank maintained a $128 price target and an Overweight rating on the shares.

While we acknowledge the potential of DELL, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DELL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.