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Being tagged as a top stock pick can do wonders for a company's share price. For proof, just look at Dell 's (NYSE: DELL) run-up in the past few days. The tech hardware company's shares ballooned by 19% in price week to date as of late Thursday evening, according to data compiled by S&P Global Market Intelligence .

A turn in the spotlight for the stock

Much of Dell's lift over the period was due to that selection. Before market open on Thursday, JPMorgan Chase flagged the company as one of its new top picks, adding it to its Analyst Focus List.

The bank's rationale is that Dell has suffered disproportionally from investor concerns about tightening margins in the segment of computer servers capable of handling significant artificial intelligence (AI) functionalities. Because of this, the company's analysts believe, Dell stock was punished more than other AI-associated titles in the recent investor pullback from AI stocks.

Those pundits clearly believe Dell is well situated in a segment poised for hot growth; in their view the opportunity to provide such servers "remains large."

AI servers are not and won't be, of course, Dell's only product line. The JPMorgan Chase team wrote that the company's presence in the traditional IT infrastructure and enterprise storage segments will serve it well, providing it excellent opportunities to grow revenue and expand its profit margins.

A bargain at current levels

Those prospects for bolstering its top line should combine with cost savings and share buybacks to lift Dell's bottom line. JPMorgan Chase feels the company could post as much as $11 per share in net income in its 2027 fiscal year. This would place the stock's forward P/E for that year at barely over 10, which is extremely low for a high-potential stock in the tech sector.

Before you buy stock in Dell Technologies, consider this: