DXC Technology (DXC): Evaluating Value as New AI Collaboration Aims to Boost Enterprise Adoption

DXC Technology (DXC) is taking center stage in a new collaboration with Dell Technologies and Digital Realty. The partnership is designed to simplify and speed up enterprise adoption of private AI solutions. This integrated effort focuses on practical AI deployments tailored for businesses.

See our latest analysis for DXC Technology.

DXC Technology has seen some sharp share price pressure lately, with its 1-year price return down 34.7% and total shareholder return off 35.6%. Recent tech collaborations and its ongoing focus on AI-driven solutions may be positioning DXC to spark renewed investor interest, but the momentum has clearly faded for now.

If today's news has you rethinking where enterprise tech is headed, you might find it rewarding to explore See the full list for free.

With shares still trading well below analyst targets and long-term performance under pressure, the key question is whether DXC is an overlooked value play or if the market has already priced in all future potential.

Most Popular Narrative: 14.8% Undervalued

DXC Technology’s widely followed narrative assigns a fair value of $15.12, which is approximately 15% above the last close price of $12.89. This signals a notable gap between current trading levels and what analysts project. This difference puts the spotlight on what could drive DXC’s value higher according to prevailing sentiment.

Deepening strategic partnerships with AI and cloud ecosystem players (such as Boomi, Microsoft, AWS, and Google Cloud) create opportunities to deliver value-added solutions for complex enterprise transformations. This could potentially lift average deal size, win rates, and revenue growth in key segments.

Read the complete narrative.

Want to know why this narrative suggests DXC’s value could leap higher? There is a pivotal assumption about the company’s future revenue mix, management’s execution, and the tech partnerships reshaping the landscape. The catch is that it all hinges on a bold performance turnaround that isn’t yet visible in the share price. Dive deeper and see which expectations underpin this upside.

Result: Fair Value of $15.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, continued revenue declines and headwinds in DXC’s core infrastructure business could present challenges for the company’s ability to deliver the turnaround investors hope for.

Find out about the key risks to this DXC Technology narrative.

Build Your Own DXC Technology Narrative

If you see the story differently or want to dig into the numbers yourself, it only takes a few minutes to create your own perspective. Do it your way

A great starting point for your DXC Technology research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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