Dell vs. Nvidia: Chip Stocks Just Suffered Their Worst Sell-Off Since 2020. Which Is the Better Buy for 2027?

Chip stocks just logged their worst sell-off since 2020, and a new comparison pits DELL against NVDA as the better AI infrastructure buy for 2027. The Motley Fool's verdict favors NVDA despite its richer multiple.

The valuation gap is clear. DELL trades at 14.2x forward earnings, while NVDA commands 21.7x. On price alone, DELL looks cheaper by roughly 7.5 turns of forward P/E.

The cheaper multiple comes with a tradeoff. DELL delivers strong revenue growth but runs thin margins. NVDA posts a 55.6% profit margin and carries superior financial strength, according to the author. That margin differential is the core of the argument: NVDA converts revenue into profit at a far higher rate, which supports a premium multiple.

The article's recommendation rests on three pillars for NVDA: market leadership, profitability, and financial flexibility. Interpretation: after a sell-off of this magnitude, the piece implies investors may prefer balance-sheet strength and margin durability over the lower entry price DELL offers. Notably, the comparison frames both names as AI infrastructure beneficiaries, so the debate is about quality versus price, not thesis.

This is one outlet's opinion, not a consensus call, and the sell-off itself may keep both stocks volatile.