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Dell added governed AI software, deskside templates and modular infrastructure as its AI Factory customer base reached 6,500.

Summary

Dell’s customer count is rising, but the stock now demands cleaner backlog conversion.

Enterprise-computing supplier Dell Technologies DELL expanded its Nvidia-backed AI Factory offerings, but shares fell approximately 7.04% to $451.70 as of 11:20 a.m. ET Thursday. The rollout spans desktop AI systems, servers and modular data centers. More products mean more opportunities to win business. They also raise the bar for execution.

Dell says AI Factory adoption topped 6,500 customers, versus 5,000 last quarter—roughly 30% growth. Its fiscal-second-quarter results also showed $60.9 billion in AI-server orders, $16.4 billion in AI-server revenue and a $95 billion ending backlog. Demand looks substantial. The next test is turning those commitments into shipments, profits and cash.

The valuation snapshot puts Dell 87.19% above its $241.31 GF Value estimate, suggesting hefty growth expectations remain baked into the price despite the decline. That estimate is a valuation reference, not a guaranteed destination. Investors should watch AI-server margins, cash generation and backlog conversion: a huge order book matters most when fulfilling it produces attractive returns.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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A Wall Street downgrade citing concerns over the pace of corporate artificial intelligence adoption sent Dell Technologies (DELL -4.58%) tumbling 22.9% last week.

Dell stock changed hands at $451.71 as of the close on Friday, Oct. 15, down 22.9% from last Friday's close. Over the same period, the S&P 500 (^GSPC -1.09%) fell 1.95%, and the Nasdaq-100 was down 5.49%.

Image source: The Motley Fool.

Wall Street casts doubt on the timing of enterprise AI spendingAnalysts at Barclays downgraded Dell on Wednesday, Oct. 14, lowering their rating to the equivalent of a hold from a buy. The analysts argued that recent enterprise server revenue growth stems primarily from memory component cost inflation passed along to customers rather than a fundamental surge in enterprise artificial intelligence adoption. They noted that hardware represents only about a quarter of total corporate AI budgets and warned that normalizing memory prices could weigh on server-related revenue in the coming quarters.

Dell Technologies sells enterprise data center servers, storage systems, and personal computers to commercial businesses and consumers. Its Infrastructure Solutions Group supplies high-performance servers designed for complex data workloads, while its Client Solutions Group sells commercial desktops and laptops. The Wall Street critique strikes at the heart of Dell's growth narrative, which hinges on enterprise clients upgrading physical infrastructure to deploy generative AI workloads.

In its last reported quarter, which ended July 31, 2026, Dell generated record revenue of $47 billion, up 57.7% year over year, buoyed by $16.4 billion in AI server revenue. However, if corporate clients slow their hardware deployment schedules while component costs ease, top-line growth could cool rapidly. Barclays' downgrade highlights that near-term server growth may reflect pass-through memory inflation rather than accelerating enterprise AI adoption, sharpening doubts around Dell's AI infrastructure trajectory.

What's next for Dell TechnologiesDell trades at a trailing price-to-earnings (P/E) ratio of 26.2. That sits near the middle of a wide peer range, with HP at 11.6, Hewlett Packard Enterprise at 28.8, and International Business Machines at 20.6 trailing P/E. The multiple alone does not show whether Dell is cheap or expensive, though sustainable enterprise AI demand does.

Investors should focus on Dell's next scheduled quarterly earnings report on Nov. 24, 2026. Management's commentary on the infrastructure backlog and operating margin trends will provide the clearest evidence of whether enterprise server orders are holding up or slowing.

$451.71-$21.68 (-4.58%)

NYSE · As of 4:00 PM ET 10/16/26

Is Dell Technologies stock a buy? Dell stock has tripled over the last year as data center build-outs accelerated, and demand for Dell's servers exploded. Unlike some other AI-related names, though, the stock didn't just rise on speculation and hope for future business. Dell's revenue has soared, and the stock's value along with it.

Fears of waning demand for Dell's products hit the stock this week, resulting in a correction of more than 20%. That's a normal process to balance overexcitement, though, and it's what long-term shareholders should want to see.

The decline gives investors a chance to buy Dell stock at a more reasonable price. Dell isn't overly valued given its existing, profitable business. Even if demand for its AI-optimized servers slows, those products are estimated to account for less than 40% of total annual revenue this fiscal year. And demand for AI will likely be sustained at some level.

A permanent shift away from enterprise AI adoption would certainly negatively impact returns for Dell shareholders. But a profitable, growing business is still in place. That makes this week's correction a good opportunity to own some Dell stock.

In the latest close session, Dell Technologies (DELL - Free Report) was down 6.8% at $473.39. This change lagged the S&P 500's 0.33% gain on the day. Meanwhile, the Dow experienced a rise of 1.08%, and the technology-dominated Nasdaq saw an increase of 0.08%.

The computer and technology services provider's stock has dropped by 9.83% in the past month, falling short of the Computer and Technology sector's gain of 1.62% and the S&P 500's gain of 1.41%.

Market participants will be closely following the financial results of Dell Technologies in its upcoming release. In that report, analysts expect Dell Technologies to post earnings of $6.63 per share. This would mark year-over-year growth of 155.98%. Our most recent consensus estimate is calling for quarterly revenue of $50.63 billion, up 87.47% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $26.09 per share and a revenue of $195.68 billion, indicating changes of +153.3% and +72.35%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Dell Technologies. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.13% higher. Dell Technologies is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Dell Technologies is holding a Forward P/E ratio of 19.47. Its industry sports an average Forward P/E of 19.47, so one might conclude that Dell Technologies is trading at no noticeable deviation comparatively.

One should further note that DELL currently holds a PEG ratio of 0.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Micro Computers stocks are, on average, holding a PEG ratio of 1.58 based on yesterday's closing prices.

The Computer - Micro Computers industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Dell shares plummeted 11% on Wednesday and dragged down other data center equipment names on mounting concerns that enterprise spending on artificial intelligence won't justify the AI buildout.

Hewlett-Packard Enterprise, Oracle and Super Micro all joined in the downward slide.

In a report to clients on Wednesday, analysts at Barclays downgraded its rating on Dell, HPE and NetApp, "after a significant run and on enterprise AI timing."

Makers of data center servers and other backend equipment have been favored on Wall Street this year on optimism that they'll be selling huge volumes of gear tied to demand for AI chips and systems for years into the future. Dell has been one of the top performers on the market, up more than 300% this year, while HPE has jumped about 160% and NetApp has doubled.

However, sentiment toward the AI infrastructure space has shifted of late due in part to concerning revenue figures out of OpenAI and more broadly out of fear that rising interest rates will create a challenging environment as so much of the buildout is reliant on debt. Oracle, a heavy borrower, dropped 9% on Wednesday and is now down 33% for the year while neocloud CoreWeave plunged 15%, wiping out its gains for 2026.

The Barclays analysts said they haven't seen a "meaningful AI inflection" when it comes to enterprise spending for Dell, HPE and NetApp, lowering the rating on each to the equivalent of a hold from buy. They instead attribute increased revenue to the global memory shortage and noted that infrastructure companies have passed the higher price of memory along to customers.

"There is growing sentiment about enterprise AI adoption creating a hardware refresh," the Barclays analysts wrote, adding that businesses are typically allocating just 5% of their IT budgets to AI. "We believe the strong enterprise revenues are more of a function of memory costs than a move to enterprise AI at this time."

The Barclays analysts also found that only about a quarter of total enterprise AI spend is going towards hardware. They said normalizing and eventually declining memory prices could weigh on infrastructure-related revenue.

Memory is a notoriously cyclical business, and stocks were hit this week after China's ChangXin Memory Technologies, or CXMT, reported progress over the weekend on a new chip structure. Micron is down 11% for the week, while South Korea's SK Hynix has tumbled 13% in U.S. trading and Western Digital has dropped more than 8%.

Dell Technologies (DELL - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this computer and technology services provider have returned +8%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Computer - Micro Computers industry, which Dell Technologies falls in, has gained 2.4%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Dell Technologies is expected to post earnings of $6.63 per share for the current quarter, representing a year-over-year change of +156%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $26.09 points to a change of +153.3% from the prior year. Over the last 30 days, this estimate has changed +0.1%.

For the next fiscal year, the consensus earnings estimate of $30.24 indicates a change of +15.9% from what Dell Technologies is expected to report a year ago. Over the past month, the estimate has changed +0.3%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Dell Technologies is rated Zacks Rank #1 (Strong Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Dell Technologies, the consensus sales estimate for the current quarter of $50.63 billion indicates a year-over-year change of +87.5%. For the current and next fiscal years, $195.68 billion and $230.9 billion estimates indicate +72.3% and +18% changes, respectively.

Last Reported Results and Surprise HistoryDell Technologies reported revenues of $46.97 billion in the last reported quarter, representing a year-over-year change of +57.7%. EPS of $7.04 for the same period compares with $2.32 a year ago.

Compared to the Zacks Consensus Estimate of $45.34 billion, the reported revenues represent a surprise of +3.6%. The EPS surprise was +41.65%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Dell Technologies is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Dell Technologies. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

Farther Finance Advisors LLC lifted its position in Dell Technologies Inc. (NYSE:DELL – Free Report) by 32.3% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 32,808 shares of the technology company’s stock after acquiring an additional 8,008 shares during the quarter. Farther Finance Advisors LLC’s holdings in Dell Technologies were worth $17,649,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in DELL. Bank of America Corp DE lifted its stake in Dell Technologies by 7.6% in the first quarter. Bank of America Corp DE now owns 14,394,835 shares of the technology company’s stock worth $2,362,624,000 after purchasing an additional 1,011,101 shares during the last quarter. Wellington Management Group LLP raised its holdings in shares of Dell Technologies by 140.1% in the second quarter. Wellington Management Group LLP now owns 2,526,987 shares of the technology company’s stock worth $1,090,294,000 after buying an additional 1,474,347 shares during the period. NewEdge Advisors LLC boosted its holdings in Dell Technologies by 5.0% during the 2nd quarter. NewEdge Advisors LLC now owns 480,589 shares of the technology company’s stock valued at $207,355,000 after acquiring an additional 22,924 shares during the period. Dimensional Fund Advisors LP grew its position in Dell Technologies by 3.0% in the 1st quarter. Dimensional Fund Advisors LP now owns 961,675 shares of the technology company’s stock valued at $157,869,000 after acquiring an additional 27,668 shares during the last quarter. Finally, Swiss National Bank grew its position in Dell Technologies by 4.7% in the 1st quarter. Swiss National Bank now owns 931,008 shares of the technology company’s stock valued at $152,806,000 after acquiring an additional 41,700 shares during the last quarter. 76.37% of the stock is currently owned by institutional investors.

More Dell Technologies News Here are the key news stories impacting Dell Technologies this week:

Positive Sentiment: Dell received a bullish catalyst from an analyst upgrade: Mizuho raised its price target to $650 from $600 while maintaining an Outperform rating. The revision reflects reported AI-server orders of $60.9 billion, $16.4 billion in AI-server revenue and a $95 billion backlog. Why Dell Stock Is Trading Up Today Positive Sentiment: Dell launched new Windows PCs and workstations designed for “agentic AI” in collaboration with NVIDIA and Microsoft. The products expand Dell’s AI offerings beyond data-center servers and could support demand from developers and creative professionals. Dell Technologies Drives the Agentic AI Era Positive Sentiment: Coverage continues to highlight Dell’s expanding AI customer base, large backlog and recently enhanced AI Data Platform, including NVIDIA-powered acceleration, data orchestration and enterprise knowledge-graph capabilities. These developments reinforce the long-term AI infrastructure growth narrative. Can Dell Turn Its New AI Data Platform Into a Durable Competitive Advantage? Neutral Sentiment: CEO Michael Dell’s involvement in Trump Accounts and a pledge to fund accounts for children has increased the company’s visibility, but the initiative is philanthropic and does not directly change Dell’s operating outlook. Michael Dell Defends Trump Accounts Negative Sentiment: Several Silver Lake-affiliated directors sold a combined roughly 127,000 Dell shares for about $73 million on October 6. Multiple transactions reduced their holdings by approximately 68%–72%, creating a near-term supply and confidence overhang, although one seller retained a substantial position. SEC insider-trading filing Negative Sentiment: After a steep AI-driven rally, profit-taking across server stocks—including Dell and Hewlett Packard Enterprise—has encouraged investors to question whether the sector’s momentum can continue. Dell’s elevated valuation makes it more vulnerable to consolidation despite strong earnings and guidance. Profit Taking Unwinds Server Rally Dell Technologies Stock Performance NYSE DELL opened at $575.17 on Friday. The company has a market cap of $365.70 billion, a PE ratio of 33.38, a P/E/G ratio of 0.60 and a beta of 1.37. The firm’s 50 day moving average price is $504.43 and its 200-day moving average price is $379.92. Dell Technologies Inc. has a 52-week low of $110.22 and a 52-week high of $595.51. Dell Technologies (NYSE:DELL – Get Free Report) last issued its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 EPS for the quarter, topping analysts’ consensus estimates of $4.91 by $2.13. The company had revenue of $46.97 billion during the quarter, compared to the consensus estimate of $44.89 billion. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. Dell Technologies’s revenue for the quarter was up 57.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.70 earnings per share. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. On average, analysts forecast that Dell Technologies Inc. will post 25.13 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Tuesday, October 20th will be paid a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Tuesday, October 20th. Dell Technologies’s dividend payout ratio is 14.63%.

Insider Activity at Dell Technologies In other Dell Technologies news, Director Spv-2 L.P. Sl sold 46,323 shares of the stock in a transaction dated Tuesday, October 6th. The shares were sold at an average price of $575.43, for a total transaction of $26,655,643.89. Following the completion of the sale, the director directly owned 22,254 shares of the company’s stock, valued at approximately $12,805,619.22. This represents a 67.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Silver Lake Partners V. De (Aiv sold 26,539 shares of Dell Technologies stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $575.43, for a total transaction of $15,271,336.77. Following the completion of the transaction, the director directly owned 11,567 shares in the company, valued at approximately $6,655,998.81. The trade was a 69.65% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,697,272 shares of company stock valued at $920,162,797 over the last 90 days. Company insiders own 41.50% of the company’s stock.

Analyst Upgrades and Downgrades A number of analysts have recently issued reports on the stock. Susquehanna reissued a “positive” rating on shares of Dell Technologies in a research note on Tuesday, September 29th. Barclays lifted their price objective on shares of Dell Technologies from $550.00 to $603.00 and gave the company an “overweight” rating in a report on Wednesday, September 2nd. US Capital Advisors set a $625.00 price objective on shares of Dell Technologies in a research report on Wednesday, September 2nd. Wells Fargo & Company raised their target price on shares of Dell Technologies from $505.00 to $545.00 and gave the stock an “overweight” rating in a research report on Friday, August 14th. Finally, Melius Research boosted their price target on Dell Technologies from $650.00 to $735.00 and gave the company a “buy” rating in a report on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, Dell Technologies currently has a consensus rating of “Moderate Buy” and a consensus price target of $571.12.

Check Out Our Latest Research Report on DELL

(Free Report)

Dell Technologies Inc (NYSE: DELL) is a global technology company that develops, sells and supports information technology hardware, software and services. Its offerings include personal computers, workstations, monitors, accessories and other client devices, as well as enterprise infrastructure products such as servers, storage systems, networking equipment and data protection solutions.

The company also provides technology consulting, support, managed services and infrastructure solutions designed to help organizations operate data centers, private and hybrid clouds, artificial intelligence workloads and digital workplaces.

See Also Five stocks we like better than Dell Technologies Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push Want to see what other hedge funds are holding DELL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dell Technologies Inc. (NYSE:DELL – Free Report).

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Anna Moneymaker/Getty Images Dell is joining the list of companies paying into the Trump Accounts of its employees' children.

"We plan to provide a one-time $1,000 contribution for eligible children of our team members, in addition to any government seed contribution for which the child qualifies," a Dell company spokesperson told Business Insider.

The company is still working through the logistics and guidance from the US Treasury, the spokesperson added. Employees can apply for and contribute to their children's Trump Accounts and receive the government's one-time contribution in the meantime.

Trump Accounts, launched on July 4, are a new investment program designed to help children grow their wealth. If your baby is born between 2025 and 2028 and is an American citizen, the government will deposit $1,000 into the account.

Companies, including Goldman Sachs, Micron, and Chipotle, have also announced plans to match the government's $1,000 contribution for their employees.

On Wednesday, Michael Dell, the founder of Dell Technologies, told Fox News that he believes donations to Trump Accounts will become "a standard benefit" at many companies.

Dell is closely tied to the Trump Accounts scheme. His family foundation, which he leads with his wife, Susan, has donated $6.25 billion to the program, and he has made regular appearances alongside the president over the last year to promote the investment program.

The Dells' donation is set to land in Trump Accounts this week as a $250 contribution for eligible recipients. To qualify, recipients must be born between 2016 and 2024, and live in a ZIP code with a median family income of $115,000 or less, based on US Census data.

By the end of the week, 25 million accounts will have received the $250 lump sum, Dell told Fox News on Wednesday.

The Dell Foundation has long focused its philanthropic efforts on children, education, and economic opportunity, aligning with the mission of Trump Accounts.

"We did research in our foundation and found that, when a child has even a small amount, they're much more likely to have greater life outcomes," Dell told Fox News.

Being close to the president has also brought Dell's company some free publicity. On several occasions, Trump has told reporters to "go out and buy a Dell computer." In April, following one such endorsement, Dell's shares popped by as much as 9%.

Since the Dell Foundation announced its donation in December, the president has purchased more than $1 million in Dell stock. In April, he sold at least $50,000 worth of Dell shares and possibly as much as $100,000.

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Dell's AI customer list is exploding and its backlog dwarfs what Wall Street expects, yet analysts have barely moved their price targets. Here is what the numbers actually suggest about where this stock could go by 2027.

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Dell Technologies (NYSE:DELL | DELL Price Prediction) has turned into one of the market’s biggest AI winners, but it still gets less attention than the chipmakers. Shares are up 348.53% year-to-date and 1,048.21% over five years. The driver is a customer base that keeps getting wider.

Dell’s AI infrastructure list passed 6,500 customers, and 3,300 of them signed on in the last three quarters. On Dell’s September 1 earnings call, Jeff Clarke said “IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly.”

So what would it take for Dell to reach $800 by 2027?

Wall Street’s Price Targets Lag Behind Rapidly Rising Estimates The average analyst target is $583.96. That’s only 4% above today’s $559.42. Still, analysts like the stock: 19 rate it a Buy or Strong Buy and none rate it a Sell.

Earnings estimates have rose faster than targets: ninety days ago, analysts expected $18.3732 in fiscal 2027 EPS. Today the figure is $25.8976, a 41% increase. In the last 30 days there were 22 upward revisions and zero cuts.

Management now guides to $192 billion in revenue (up 69%) and $25.50 in non-GAAP EPS (up 148%). Dell has also beaten EPS estimates in five straight quarters, so actual results may land above forecasts again.

Here’s What It Takes for Dell to Reach $800 Dell currently trades at 22x fiscal 2027 estimates. At $800, that multiple would rise to 31x. Against fiscal 2028’s $24.6637 consensus, it would be 32x.

That fiscal 2028 average is pulled down by one outlier estimate of $9.67, while the high estimate is $30.19. A low-30s multiple is a premium, but it’s justified for a company more than doubling its earnings.

The case for Dell reaching $800.

Backlog visibility: Dell booked $60.9 billion in AI orders last quarter and ended it with a $95 billion backlog. Management says the pipeline is still multiples of backlog. Server refresh: Traditional servers and networking grew 122%, and Dell gained more than 10 points of share over two quarters. Its new 18G server can replace 12 to 14 older machines. Storage margins: Storage revenue rose 26%. More of that mix is Dell’s own IP, which has higher margins. Buybacks: Dell returned a record $4.3 billion to shareholders in the quarter. Long runway: Management estimates the AI opportunity could top $1 trillion by 2030. The main challenge is supply: management said demand is running ahead of supply, with DRAM and NAND shortages limiting how much it can ship. A falling market would also make $800 harder to reach.

Dell’s History Says $800 Is Within Reach Getting to $800 requires a 43% gain. Since 2020, Dell has topped that bar in three full calendar years: 51% in 2021, 96% in 2023 and 53% in 2024.

That’s before counting 2026’s run so far. The stock is volatile, though. It fell 27% in 2022 and has a beta of 1.409.

$800 Is a Stretch, but Dell Has the Backlog to Get There Reaching $800 would take a 43% move. Estimates are rose quickly, Dell keeps beating them, and a $95 billion backlog gives unusual visibility.

Should supply improve and servers and storage keep growing, the multiple has room to expand. Dell is one of the best examples of an AI winner that isn’t a chipmaker, and we rounded up seven more infrastructure names riding the same expansion in a free report here. Returns at this level are rare, but this is how Dell could deliver outsized gains in 2027.

Contact [email protected] for any questions or corrections.

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Dell AI Data Platform, the data foundation of the Dell AI Factory, expands with new data orchestration and storage capabilities

Unified Semantic Layer and Enterprise Knowledge Graph give every application and agent the same trusted view of enterprise data Dell AI Data Platform shortens the wait between question and insight with accelerated data processing that processes data nearly 4 times faster on average than CPUs alone Dell AI Data Platform storage enhancements improve security and benchmark performance New AI-ready data services move organizations from deployment to production quickly and reliably ROUND ROCK, Texas--(BUSINESS WIRE)--Dell Technologies (NYSE: DELL) expands the Dell AI Data Platform so AI systems deliver better answers, cost less to run and reach production faster, giving applications and agents trusted, current context from a company's own data.

Arthur Lewis, president, Infrastructure Solutions Group, Dell Technologies: "Data without context is just noise. Most enterprises have spent years making their data accessible. That's not the same as making it usable."

Share Why it matters

In most cases the model isn't the bottleneck to achieving enterprise scale for AI. The data is. A company's most useful information sits in files, databases, cloud services and systems across multiple sites. Most of it was created long before anyone expected an AI agent to read it. It was never labeled, connected or organized with a machine reader in mind. As a result, agents burn tokens reconstructing answers that should already exist. Every query means more steps, more compute, more cost and slower, less trustworthy results.

Giving data meaning and context

The Dell AI Data Platform is built end to end, from where data is stored to where agents use it. Storage moves critical data to accelerated compute without bottlenecks; orchestration connects and prepares it; analytics and search transform and index it. NVIDIA Nemotron Retriever models enable document parsing, embedding and reranking. NVIDIA cuVS accelerates vector indexing and search. Because every layer runs on one platform, everything it produces traces back to governed data the customer already owns. Agents return to the same documents, history and decisions repeatedly, and most systems rebuild their understanding from scratch every time. That means answering the same two questions on every request: what does this term mean and how does it relate to everything else? Dell is extending the Dell AI Data Platform with three new features to answer both at once.

The Unified Semantic Layer gives structured and unstructured information consistent business meaning with rules, definitions and a searchable glossary, so a term means the same thing everywhere it appears. If one system calls it a client and another calls it an account, AI now knows they're the same thing. Users can also import existing ontologies and classification taxonomies, reusing industry-standard or enterprise-specific taxonomy assets. Dell is also enabling NVIDIA Auto-Ontology, an open-source library that builds knowledge graphs from enterprise data, to extend the Unified Semantic Layer. The Enterprise Knowledge Graph maps how structured and unstructured data is related, so an application or an agent can find the right context. It uses metadata, lineage and query history to keep tuning the graph as activity changes. When an agent asks a question, the platform pulls in every related piece it's allowed to see: the right tables, data products, multimodal data and vector indexes, wherever they live. For instance, a manufacturer chasing a production line problem can trace one odd sensor reading to the machine, its repair history, the supplier batch and the orders at risk. Knowledge Agents put that context to work. Each one acts as a trusted advisor on a single topic, grounded in a defined slice of the Enterprise Knowledge Graph. Customers set the rules: what guidance it follows, what data it can see, what quality bar it must clear and how much it's allowed to spend. NVIDIA Nemotron Retriever models provide reasoning and visual understanding to Knowledge Agents. The Unified Semantic Layer, Knowledge Graph and Knowledge Agents hold a customer's most valuable and sensitive information, so they stay inside the platform in the customer's data center. The platform builds context from that data, keeps it current as the business changes and shares it across every application and agent, without locking customers into any single model, data or storage provider.

Acceleration and security built into the data path

Business context is only reliable if data is accurate, current and governed from source to application. Customers should not have to adopt another proprietary layer to accelerate different parts of their data environment. Dell brings acceleration into the data engines themselves, working with NVIDIA across the data path. Data must be transformed and analyzed, then reach accelerated compute fast enough to keep GPUs saturated and stay protected along the way. Dell data and storage advancements include:

cuDF accelerated data processing with Apache Arrow: New testing shows that the Dell Data Processing Engine, powered by NVIDIA cuDF on NVIDIA RTX PRO 4500 Blackwell Server Edition GPUs, processes data nearly 4 times faster on average than CPUs alone across a range of workloads, and up to 20 times faster on batch processing workloads.¹ Apache Arrow moves data efficiently between Dell storage and processing, so jobs can query data in place. This can reduce data-preparation time and shorten the path from raw enterprise information to trusted context. Expanded multitenancy and security: Dell PowerScale now supports up to 500 tenants in a single cluster, with mTLS over NFS to encrypt and authenticate file traffic and more granular role-based access control for managing each tenant. AI service providers and enterprises running shared AI platforms can serve more teams and customers from one cluster while keeping each tenant's data isolated and secure. Benchmark workload performance: The new Dell Storage Performance Tool helps customers confidently size AI infrastructure, compare vendor solutions and keep GPUs fed by testing the performance of their S3-compatible object storage across training, inference and checkpointing. Expertise to get to production

Dell is expanding Dell AI Data Platform implementation services across its data and storage engines to move organizations from deployment to production results quickly and reliably. Dell Services establish a production-ready foundation, activating the platform’s analytics, processing, search and orchestration capabilities while keeping the platform tuned to the demands of AI workloads.

Perspectives

Arthur Lewis, president, Infrastructure Solutions Group, Dell Technologies:
“Data without context is just noise. Most enterprises have spent years making their data accessible. That's not the same as making it usable. An agent that can find a customer record but doesn't know what it means, how it connects to everything else, or whether it can be trusted isn't intelligent. It’s just fast. The companies that solve it won't just deploy AI faster or run more agents. They'll get more out of the data they already have.”

Jason Hardy, vice president of storage technology, NVIDIA:
“AI agents are only as effective as the data they can access, understand, and trust, and NVIDIA accelerated computing and AI software help turn governed data into AI-ready context. By bringing NVIDIA cuDF acceleration directly into the Dell Data Processing Engine, Dell helps shorten the path from stored data to GPU-accelerated AI-ready data their agents can use to drive real world innovation.”

Availability

The Unified Semantic Layer, Enterprise Knowledge Graph and Knowledge Agents will be released in 1H 2027. Dell Data Processing Engine enhancements with the NVIDIA acceleration stack will be available in December 2026, with further acceleration using Apache Arrow expected 1H 2027. Dell PowerScale security and multitenancy enhancements will be available in November 2026. The Dell Storage Performance Tool is available now. AI-ready data services are available now. Additional resources

Blog: Getting Enterprise AI into Production Starts with Context Connect with Dell on X and LinkedIn 1. Based on Dell internal testing in September 2026 comparing GPU-accelerated and CPU-only Apache Spark runs across diverse data processing workloads on a Dell PowerEdge R770 with NVIDIA RTX PRO 4500 Blackwell Server Edition GPUs. Results showed a 3.9x average speedup and a 20.4x peak speedup on a batch processing (data mining) workload. The numbers are from default configurations without any performance tuning to the engine or infrastructure. Actual results may vary.

About Dell Technologies

Dell Technologies (NYSE: DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the AI era.

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It's been a banner year for Dell Technologies (DELL +3.84%), with its stock up nearly 325% at the time of this writing.

Like many other large tech stocks, it has found its place in the artificial intelligence (AI) supply chain, specifically with its AI servers, which have been in high demand this year as graphics processing unit (GPU) clusters and data centers scale.

As such, Dell has been able to distribute more capital back to shareholders, noticeably raising its quarterly dividend by 20% earlier this year. Dell only initiated its dividend program in 2023.

Can investors trust the stock for passive income?

Image source: The Motley Fool.

Why Dell's stock has exploded this year While GPUs and other chips have been at the center of the AI trade, they need to interact with other components in a data center to obtain the capabilities needed to respond to queries from, say, a large language model.

Dell's AI-optimized servers integrate the chips, memory, and other necessary components that power them, including liquid cooling and data storage, into a full server and rack.

The company also performs quality control and then ships them to customers such as neoclouds and other large customers, including hyperscalers that operate their own data centers.

While Dell isn't the only company building and selling full-scale AI racks, it's been all hands on deck amid massive AI demand, resulting in shortages across the supply chain.

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In its second quarter of fiscal year 2027, the company posted $47 billion in revenue, up 58% year over year, while diluted earnings per share of $6.34 surged 273%.

Management also lifted its full-year guidance from $167 billion to $192 billion, implying 69% annual growth.

"Demand is broadening across neoclouds, sovereigns, and enterprise customers, and our customer count has surpassed 6,500," Dell's Chief Operating Officer Jeff Clarke said on the company's most recent earnings call. "The scale and complexity of these deployments reinforce why customers choose us."

Can Dell's dividend be trusted? It's pretty easy to see why Dell was able to raise its quarterly dividend by 20% to $0.63 per common share.

The much-improved financials have also contributed to a 224% increase in adjusted free cash flow in the second quarter. More free cash flow means more money for dividends. Dell's trailing-12-month free cash flow yield of 2.37% far exceeds its trailing dividend yield of 0.43%.

The payout ratio is also not high, with $2.52 in annualized dividends per share easily covered by this quarter's profits alone. The company is also repurchasing stock, with nearly $3.8 billion of share repurchases in the most recent quarter, which dwarfs the $405 million of dividend payments.

Now, obviously, the big question or future concern for Dell's dividend is what happens if AI demand dries up.

While there's certainly no evidence of this happening right now, the hyperscalers continue to raise their future guidance for AI-related capital expenditures, which could very well top $1 trillion next year. But it's hard to imagine this level of spending continuing like this forever.

When evaluating stocks for dividends, it's key for investors to consider what a company's earnings and free cash flow could be over the long term to estimate what a sustainable dividend looks like and how much it can be raised each year.

The good news is that Dell's $2.62 projected annualized dividend is still well below the $8.68 in diluted earnings per share the company generated in fiscal year 2026, or even the $6.38 it earned in fiscal year 2025.

This tells me that even if earnings were to slow considerably, Dell's dividend would still be covered, so I see no reason why the dividend can't be increased annually moving forward.

That said, Dell's 0.43% annual yield is not particularly attractive, so if you're purely focused on passive income, there are likely more attractive dividend stocks out there. But higher-yielding dividend stocks may not be able to tap into the AI trade like Dell can, for better or worse.

Dell's AI server order book just hit a record, yet management keeps repeating one word to explain why they cannot ship fast enough to meet it. That bottleneck could decide whether today's rally holds or reverses.

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Server hardware is drawing a concentrated bid, with two enterprise infrastructure makers rising together on artificial intelligence demand. Shares of Dell Technologies (NYSE:DELL | DELL Price Prediction) and Hewlett Packard Enterprise (NYSE:HPE) are both climbing, and the size of Dell’s order book makes the rally in Dell stock the more revealing one to analyze.

Dell stock is at $566.05, up 4% in afternoon trading. Meanwhile, HPE shares are at $69.54, up 8% and running ahead of the gain in Dell stock.

The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) trades at $769.19, up 0.7%, a far smaller advance than either hardware stock. Checking in on the tech sector, the Invesco QQQ Trust (NASDAQ:QQQ) is rising 1% to $749.82.

Dell’s Record Backlog Frames the Move Dell raised its revenue forecast for the current fiscal year on September 1, lifting the midpoint to $192 billion and pointing to artificial intelligence server demand as the reason. Management at Dell stated that the company closed its most recent quarter with a record artificial intelligence order backlog of $95 billion. A backlog of that scale shifts the debate around Dell from whether demand exists to whether the company can build fast enough to meet it.

Customer breadth adds weight to that order book, as Dell’s leadership stated plainly that “The acceleration is enterprise.” The comment signals that demand for Dell systems is spreading into traditional corporate buyers, a deeper and potentially steadier base than a handful of giant cloud builders.

Memory Supply Sets Dell’s Pace Memory chip supply is the constraint Dell management itself named as the main obstacle to converting that backlog into revenue. When Dell raised its outlook on September 1, leadership put it bluntly: “The constraints remain the same… DRAM, DRAM, DRAM, followed by NAND, NAND, NAND.” Those terms refer to the memory and flash storage chips every server needs, which makes component availability the factor that decides whether Dell meets its raised forecast.

Dell’s leadership also stated, “Demand outstrips supply,” and added, “We are supply constrained.” That framing cuts both ways for Dell stock. Customer appetite for Dell systems looks secure, yet any shortfall in memory deliveries could delay the company’s revenue and test the patience of shareholders who’ve lifted the shares to this level.

What HPE and the Fund Figures Show On September 30, HPE announced a large artificial intelligence systems order from the cloud provider Vultr and raised its networking growth outlook alongside it, according to Hewlett Packard Enterprise. This announcement precedes the latest gain, and HPE shares are advancing in step with Dell stock. HPE’s Vultr order feeds the same artificial intelligence expansion that sits behind Dell’s backlog.

Supply is a shared theme, and HPE management has described the same bottleneck: “Supply will continue to be constrained, which means we’re going to continue to run into high backlogs as we go forward.” The company also stated, “We booked more orders than any prior quarter in our history, resulting in a record-breaking backlog for the company.” Both HPE and Dell, in other words, face orders arriving faster than components.

Against that backdrop, the SPDR S&P 500 ETF Trust’s modest gain shows how narrow the buying is. With the fund up 0.7%, the outsized moves in Dell stock and HPE shares reflect a bid for server hardware specifically, concentrated in the companies tied most directly to artificial intelligence infrastructure (we covered seven of the suppliers driving this expansion, beyond the chipmakers, in a free report you can grab here).

What to Watch Next Dell’s next test is execution, because its raised forecast depends on securing enough memory to convert a record backlog into revenue. Traders can watch for updates on memory supply when Dell next reports, since component availability determines how quickly orders become sales.

Investors weighing their exposure should adjust their holdings carefully given that memory chip supply, a constraint Dell management named itself, could decide how fast Dell and HPE turn orders into revenue. Strong demand supports the bull case, while component shortages and the wide gap over the broad market keep the risk to their positions elevated.

Contact [email protected] for any questions or corrections.

Dell's AI server business has exploded, its backlog dwarfs what most companies earn in a year, and the stock has already staged one of tech's most dramatic runs. The question now is whether supply constraints and a cash flow slide…

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Dell (NYSE:DELL | DELL Price Prediction) has become a major AI infrastructure company. Last quarter, AI servers alone generated $16.40 billion in revenue. The stock trades at $537.48. Our 24/7 Wall St. price target is $594.78, meaning 10.66% upside over 12 months, with a buy rating and 90% confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $537.48 Price Target from 24/7 Wall St. $594.78 Upside 10.66% Recommendation BUY Confidence Level 90% The target sits just below the 52-week high of $595.51, meaning the thesis depends on Dell turning its backlog into earnings.

A $95 Billion Backlog Fueled a 330% Run Dell is up 330.94% year to date and 15.88% over the past month. It has fallen 5.38% over the past week and sits 9.74% below its high. The 52-week low was $109.7.

Dell reported fiscal second-quarter results on September 1. Revenue rose 57.75% to $46.97 billion, beating the $44.44 billion estimate. Non-GAAP EPS came in at $7.04, well ahead of the $4.90 consensus.

AI orders hit a record $60.9 billion, and backlog reached $95 billion. Management raised full-year revenue guidance to $192 billion and non-GAAP EPS guidance to $25.50.

Why Bulls See $635 and Beyond The bull case is $635.68. Demand goes beyond AI: traditional server revenue jumped 122% and storage grew 26%. Dell serves over 6,500 AI customers. Management expects operating expenses near 8% of revenue, the lowest in its 42-year history.

Analyst ratings: 5 Strong Buy, 14 Buy, 9 Hold, zero Sell. Fiscal 2028 EPS consensus rose to $24.6637, up from $18.3525 60 days ago.

Supply Shortages and Cash Flow Could Stall the Rally Supply is the biggest risk. CEO Jeff Clarke stated: “DRAM, DRAM, DRAM, followed by NAND, NAND, NAND.” Free cash flow fell 47.22% to $986 million, and shareholders’ equity is negative at -$1.427 billion.

Context matters: capital spending rose 83.56% as Dell added capacity. Adjusted free cash flow was $8.1 billion and core leverage 0.8x.

Dell Trades at a Premium to HPE and Super Micro Company Forward P/E PEG Ratio Dell 21 0.646 HPE 14 0.498 Super Micro 10 0.913 Hewlett Packard Enterprise (NYSE:HPE) sells servers, storage and networking to the same enterprise buyers. At 14x forward earnings with a lower PEG, it screens cheaper on growth-adjusted valuation.

Super Micro (NASDAQ:SMCI) competes directly on AI rack systems at 10x forward earnings. Only 5 analysts rate it Buy or better versus 3 Sell ratings, suggesting investors reward Dell’s execution record. Our target looks reasonable relative to these peers.

Record Backlog Tips the Scale Toward Upside My 24/7 Wall St. price target is $594.78, with a buy rating and 90% confidence. The $95 billion backlog provides over a year of revenue visibility.

I would turn more constructive if Dell holds supply and converts backlog on schedule, and conservative if memory shortages squeeze margins or free cash flow continues falling.

Year Price Target from 24/7 Wall St. 2026 (December) $557.39 2027 (September) $588.17 2028 (September) $642.38 2029 (September) $667.29 2030 (September) $694.61 The projections rest on Dell continuing to execute its strategy. A faster enterprise AI expansion could drove results higher (we covered seven of the infrastructure suppliers riding that same wave, power and cooling included, in a free report), while a pullback in hyperscaler spending would weigh on performance.

Contact [email protected] for any questions or corrections.

Key Takeaways Dell's $95 billion AI server backlog and $60.9 billion in orders signal strong demand.Dell raised fiscal 2027 revenue guidance to $192 billion and EPS guidance to $25.50.Oracle's $638 billion RPO comes with $70 billion in planned fiscal 2027 net cash capex. Oracle (ORCL - Free Report) and Dell Technologies (DELL - Free Report) have emerged as key enablers of the AI infrastructure buildout, but through very different business models. Oracle is building and operating massive AI data centers through Oracle Cloud Infrastructure ("OCI"), a capital-heavy strategy that promises long-duration contracted revenues. Dell supplies the servers, storage and networking that hyperscalers, neoclouds, sovereigns and enterprises need to build their own AI factories, a capital-light model that converts demand into earnings and cash faster. So, which AI infrastructure stock offers better upside potential right now? Let's find out.

The Case for ORCL StockOracle's AI opportunity is anchored by remaining performance obligations (RPO) of $638 billion at the end of fourth-quarter fiscal 2026, up 363% year over year. Most of the RPO added in the third and fourth quarters came from large-scale AI contracts in which customers either prepaid for GPUs or supplied their own hardware, with such arrangements now totaling $75 billion. Oracle signed $67 billion in AI infrastructure contracts in the fourth quarter and expects OCI to deliver a 30-40% margin profile at scale.

However, the buildout strains Oracle's financials. Free cash flow was negative $23.7 billion in fiscal 2026. Management expects fiscal 2027 net cash capital expenditure of roughly $70 billion, with reported capex higher by another $20-$25 billion from customer prepayments and timing. Oracle's 2026 funding plan also includes at-the-market equity and mandatory convertible preferred issuances, raising dilution concerns.

In August 2026, Oracle reiterated its commitment to building data centers in partnership with communities in Texas, while its Project Jupiter campus in Doña Ana County, NM, launched an initiative to save more water than it uses. Customer delivery at the New Mexico site is slated to begin in the first half of 2027, and at Saline Township, MI, in the second half. In September, Oracle extended OCI Enterprise AI to its U.S. Government and Defense cloud regions and added new models, including Moonshot AI's Kimi K3.

Oracle expects fiscal 2027 revenues to grow 34% in constant currency, but gross margin should step down as new data centers ramp toward full revenue contribution. Management reaffirmed its targets of a 31% revenue CAGR and a 28% EPS CAGR through fiscal 2030, though delivery depends on timely construction, power availability and financing.

The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $8.11, suggesting 6.29% growth year over year.

The Case for DELL StockDell benefits from AI infrastructure spending without shouldering data center capital risk. Its AI server backlog reached a record $95 billion exiting second-quarter fiscal 2027, supported by record AI orders of $60.9 billion. Management noted that agentic AI workloads are creating incremental demand for CPU-based traditional servers, broadening Dell's opportunity beyond GPUs. More than 5,000 customers are deploying the Dell AI Factory, which spans PowerEdge XE servers, the Dell AI Data Platform, networking and services from deskside workstations to rack-scale data centers.

Dell's capital-light model also supports shareholder returns. The company returned a record $4.3 billion through buybacks and dividends in the second quarter and declared a quarterly dividend of 63 cents per share, payable on Oct. 30.

In August 2026, Dell joined OpenAI's call for coordinated cyber defense in the AI era, reinforcing its focus on resilient infrastructure, cyber-recovery solutions and security services. In September, Dell introduced the XPS Googlebook built for Gemini Intelligence, extending its AI reach to devices.

Dell raised its fiscal 2027 revenue guidance by $25 billion to $192 billion, implying 69% year-over-year growth. AI-optimized server revenues are now expected to be $74 billion, up from the prior $60 billion and roughly triple the fiscal 2026 level. Non-GAAP EPS guidance was raised to $25.50 from $17.90, indicating 148% growth. For the third quarter, Dell expects revenue of $49 billion, up 81%, and non-GAAP EPS of $6.50, up 151%.

The Zacks Consensus Estimate for DELL’s fiscal 2027 earnings is pegged at $26.11 per share, implying year-over-year growth of 154%. Estimates have been revised upward by 35.4% in the past 30 days.

Valuation and Price Performance ComparisonIn terms of forward 12-month P/E, ORCL trades at 15.21X, a discount to DELL's 19.67X. Oracle's discount reflects heavy capex, negative free cash flow and potential equity dilution. Investors should buy DELL despite its premium valuation because its raised guidance, $95 billion AI backlog and capital-light model justify the higher multiple, while ORCL is best held until funding visibility improves.

ORCL vs. DELL: P/E F12M Ratio
Image Source: Zacks Investment Research

On price performance, ORCL shares have plunged 29.7% year to date, while DELL shares have returned 347.2%. Despite its surge, DELL remains attractive as guided 148% fiscal 2027 EPS growth supports further gains, whereas ORCL's decline reflects unresolved execution concerns.

ORCL Underperforms DELL Year to Date
Image Source: Zacks Investment Research

ConclusionDell holds an edge over Oracle across growth visibility, profitability, cash generation, capital returns and valuation justification. While Oracle's $638 billion RPO is impressive, converting it requires massive capex, external funding and flawless data center execution, with fiscal 2027 margins set to step down. Dell, in contrast, is monetizing AI demand through a record $95 billion backlog, sharply raised fiscal 2027 guidance and record shareholder returns without carrying data center risk. Hence, investors should buy DELL stock now for its superior upside potential, while holding ORCL stock or waiting for a better entry point until funding and margin visibility improve. DELL sports a Zacks Rank #1 (Strong Buy), while ORCL carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways DELL booked a record $60.9B in AI orders, with backlog rising to $95B in fiscal 2027.DELL raised fiscal 2027 AI server revenue guidance to $74B, about three times the prior year. HPE's AI backlog reached $7.6B, while supply constraints and rising inventory remain challenges. Hewlett Packard Enterprise (HPE - Free Report) and Dell Technologies (DELL - Free Report) are two important players in the AI infrastructure space, providing organizations with server-based capabilities that deliver high computing power. DELL’s broad portfolio across AI servers, traditional compute and storage is gaining from sustained AI infrastructure demand as customers secure capacity and modernize data centers. Hewlett Packard Enterprise provides solutions for high-performance computing, supercomputing, AI, data analytics and transaction processing.

HPE’s storage portfolio includes HPE Alletra, unstructured data solutions, data protection, GreenLake Flex and software. Considering the unprecedented growth forecast of the AI market, both companies are likely to capitalize on the emerging trends. Given this scenario, let's closely examine the fundamentals of the two companies, so investors can make an informed bet.

The Case for HPE StockHewlett Packard Enterprise’s AI infrastructure portfolio spans servers, storage, networking and private cloud capabilities, allowing customers to deploy AI workloads across data centers and hybrid environments. In the third quarter of fiscal 2026, Cloud & AI revenues rose 25.4% year over year to $9.04 billion, while server revenues increased 35.3%. HPE’s AI Systems orders reached $2.4 billion, up more than 30% sequentially, and AI Systems backlog climbed 14% to $6.8 billion.

HPE also secured a $3.5 billion inferencing deal with a hyperscaler after quarter-end, highlighting the increasing scale of enterprise AI deployments. Networking is emerging as another important AI growth engine. HPE has expanded its exposure to data center switching, routing, campus and branch networking, as well as security. Networking revenues reached $2.89 billion in the third quarter, while normalized orders increased 36%, materially faster than revenues.

Networks-for-AI orders totaled $700 million during the third quarter of fiscal 2026 and $2.2 billion cumulatively, prompting HPE to raise its fiscal 2026 target to $2.5-$3 billion. These factors have led HPE to report a record total AI backlog of $7.6 billion exiting the quarter, while management indicated that its broader pipeline remains multiples of backlog. However, Hewlett Packard Enterprise faces supply constraints in GPUs, SSDs and memory.

Furthermore, HPE’s inventory reached $11.8 billion as of July 31, 2026, compared with $6.4 billion at fiscal 2025 year-end. Logistics and commodity costs, along with inventory built ahead of demand, can delay shipments and weigh on margins. Nevertheless, HPE has a robust bottom line, with the Zacks Consensus Estimate for HPE’s fiscal 2026 earnings pegged at $3.81 per share, implying year-over-year growth of 96%. Estimates have been revised upward in the past 30 days.

Image Source: Zacks Investment Research

The Case for DELL StockDell Technologies continues to see AI server demand exceed available supply as customers expand deployments across neocloud, sovereign and enterprise environments. In the second quarter of fiscal 2027, DELL booked a record $60.9 billion of AI orders and recognized $16.4 billion of AI server revenues. DELL’s orders totaled $131.7 billion over the past 12 months, while backlog rose to $95 billion from $51.3 billion at the end of the first quarter of fiscal 2027.

DELL’s opportunity pipeline also grew sequentially and remained multiples of backlog after Dell Technologies converted more than $130 billion into orders over the prior year. Customer count surpassed 6,500, showing broader adoption beyond the largest AI buyers. DELL’s engineering, rack-scale design, deployment and services capabilities help address complex requirements around workload performance, power, cooling and data center design.

Dell Technologies expects roughly $19 billion of AI server revenues in the third quarter of fiscal 2027 and raised full-year fiscal 2027 AI server revenue guidance to $74 billion, about three times the prior year. This demand visibility and higher full-year outlook support continued AI infrastructure growth for the company. The company also offers financing flexibility for AI solutions and data centers, which can help customers manage large deployments.

DELL’s ecosystem includes NVIDIA, AMD, OpenAI, Meta, Palantir, Mistral AI, Google Cloud, Reflection, Hugging Face and Glean, making it easier and more lucrative to integrate into the workflow. The Zacks Consensus Estimate for DELL’s fiscal 2027 earnings is pegged at $26.11 per share, implying year-over-year growth of 154%. Estimates have been revised upward in the past seven days.

Image Source: Zacks Investment Research

Stock Price Performance and Valuation of SMCI & HPEIn the year-to-date period, shares of DELL and HPE have rallied 336.5% and 159.5%, respectively.

YTD Performance Chart
Image Source: Zacks Investment Research

DELL is trading at a forward 12-month ratio of 1.60X, which is higher than its median of 0.90X. HPE is trading at a forward sales multiple of 1.53X, much below its median of 0.82X.

Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research

Conclusion: HPE vs. DELLWhile both Hewlett Packard Enterprise and Dell Technologies are well positioned to benefit from sustained AI infrastructure spending, DELL appears better positioned based on the stronger scale and visibility of its AI business. DELL’s record $60.9 billion in AI orders, $95 billion backlog and raised fiscal 2027 AI server revenue guidance of $74 billion demonstrate significantly stronger demand visibility. Its AI server customer base has also expanded to more than 6,500 organizations, while its partnerships across the AI ecosystem strengthen its ability to capture workloads across enterprise and hyperscale environments. Given these factors, we suggest DELL is a safer bet right now. DELL sports a Zacks Rank #1 (Strong Buy), while HPE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Dell Technologies Inc. (NYSE:DELL – Get Free Report) Director Silver Lake Partners Iv, L.P. sold 7,994 shares of the company’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $569.77, for a total transaction of $4,554,741.38. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink.

Silver Lake Partners Iv, L.P. also recently made the following trade(s):

On Thursday, September 17th, Silver Lake Partners Iv, L.P. sold 50,688 shares of Dell Technologies stock. The stock was sold at an average price of $585.91, for a total transaction of $29,698,606.08. On Thursday, September 17th, Silver Lake Partners Iv, L.P. sold 1,800 shares of Dell Technologies stock. The shares were sold at an average price of $582.01, for a total transaction of $1,047,618.00. On Wednesday, September 16th, Silver Lake Partners Iv, L.P. sold 51,494 shares of Dell Technologies stock. The stock was sold at an average price of $567.88, for a total transaction of $29,242,412.72. On Wednesday, September 16th, Silver Lake Partners Iv, L.P. sold 5,300 shares of Dell Technologies stock. The stock was sold at an average price of $567.99, for a total transaction of $3,010,347.00. On Tuesday, September 15th, Silver Lake Partners Iv, L.P. sold 50,728 shares of Dell Technologies stock. The shares were sold at an average price of $552.61, for a total transaction of $28,032,800.08. On Tuesday, September 15th, Silver Lake Partners Iv, L.P. sold 766 shares of Dell Technologies stock. The shares were sold at an average price of $564.46, for a total value of $432,376.36. On Tuesday, September 15th, Silver Lake Partners Iv, L.P. sold 4,750 shares of Dell Technologies stock. The stock was sold at an average price of $547.78, for a total value of $2,601,955.00. On Monday, September 14th, Silver Lake Partners Iv, L.P. sold 27,161 shares of Dell Technologies stock. The shares were sold at an average price of $534.04, for a total value of $14,505,060.44. On Monday, September 14th, Silver Lake Partners Iv, L.P. sold 8,100 shares of Dell Technologies stock. The shares were sold at an average price of $538.90, for a total value of $4,365,090.00. On Friday, September 11th, Silver Lake Partners Iv, L.P. sold 79,072 shares of Dell Technologies stock. The stock was sold at an average price of $558.74, for a total value of $44,180,689.28. Dell Technologies Stock Down 4.4% DELL stock opened at $550.00 on Wednesday. The company has a market cap of $349.70 billion, a PE ratio of 31.92, a price-to-earnings-growth ratio of 0.60 and a beta of 1.34. The business has a 50-day simple moving average of $469.33 and a 200 day simple moving average of $345.79. Dell Technologies Inc. has a 52 week low of $110.22 and a 52 week high of $595.51.

Dell Technologies (NYSE:DELL – Get Free Report) last posted its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, topping the consensus estimate of $4.91 by $2.13. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The business had revenue of $46.97 billion during the quarter, compared to analysts’ expectations of $44.89 billion. During the same quarter in the prior year, the business posted $1.70 earnings per share. Dell Technologies’s revenue was up 57.7% compared to the same quarter last year. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. On average, analysts anticipate that Dell Technologies Inc. will post 25.14 EPS for the current fiscal year. Dell Technologies Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Tuesday, October 20th will be given a dividend of $0.63 per share. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 annualized dividend and a dividend yield of 0.5%. Dell Technologies’s dividend payout ratio (DPR) is currently 14.63%.

Institutional Inflows and Outflows A number of large investors have recently modified their holdings of DELL. Andra AP fonden grew its position in Dell Technologies by 16.0% during the 2nd quarter. Andra AP fonden now owns 86,168 shares of the technology company’s stock worth $37,178,000 after acquiring an additional 11,900 shares during the last quarter. Premier Financial Group bought a new position in Dell Technologies in the second quarter valued at about $34,000. Wellington Altus USA Inc. boosted its stake in shares of Dell Technologies by 38.4% during the second quarter. Wellington Altus USA Inc. now owns 1,475 shares of the technology company’s stock valued at $636,000 after purchasing an additional 409 shares in the last quarter. Revere Asset Management Inc acquired a new stake in shares of Dell Technologies during the second quarter valued at about $5,524,000. Finally, Sequoia Financial Advisors LLC grew its holdings in shares of Dell Technologies by 4.5% during the second quarter. Sequoia Financial Advisors LLC now owns 50,146 shares of the technology company’s stock worth $21,636,000 after purchasing an additional 2,176 shares during the last quarter. 76.37% of the stock is currently owned by institutional investors.

More Dell Technologies News Here are the key news stories impacting Dell Technologies this week:

Positive Sentiment: Dell’s AI customer base reportedly exceeds 6,500, with enterprise, sovereign-AI and neocloud demand contributing to record orders and an estimated $95 billion backlog. This reinforces the company’s position in the AI data-center buildout. Dell AI demand article Positive Sentiment: Morgan Stanley said Dell is well positioned to benefit from growth in on-premises AI deployments. Dell also launched the XPS Googlebook, its first XPS laptop designed for Google Gemini Intelligence, expanding its AI-focused product lineup. Morgan Stanley AI outlook Positive Sentiment: DELL recently joined the S&P 100, which could increase institutional visibility and index-related demand for the shares. Neutral Sentiment: The company’s latest quarterly results were strong: earnings per share of $7.04 exceeded expectations of $4.91, while revenue rose 57.7% year over year to $46.97 billion. However, the stock has already risen sharply and reached a fresh 52-week high, increasing expectations for continued execution. Dell fresh-high analysis Negative Sentiment: Morgan Stanley raised its price target to $511 from $499 but maintained an Equalweight rating. The target remains below recent trading levels, suggesting limited near-term upside in the firm’s view. Morgan Stanley price target update Negative Sentiment: Insiders sold sizable positions: CFO David Kennedy sold approximately $14.0 million of shares, General Counsel Richard Rothberg sold $2.3 million, and Silver Lake-affiliated directors sold tens of millions of dollars more. These transactions may raise profit-taking and supply concerns after the substantial rally, although insiders retained meaningful holdings. Dell insider sales Negative Sentiment: A bearish analysis argues that Dell’s AI-driven appreciation has made the stock vulnerable to a pullback if growth, margins or AI infrastructure spending fail to meet elevated expectations. Dell downside analysis Analyst Ratings Changes Several research firms have weighed in on DELL. Sanford C. Bernstein upped their target price on Dell Technologies from $500.00 to $650.00 and gave the stock an “outperform” rating in a research note on Wednesday, September 2nd. Raymond James Financial boosted their price target on Dell Technologies from $500.00 to $617.00 and gave the stock an “outperform” rating in a report on Wednesday, September 2nd. Susquehanna set a $289.00 price objective on Dell Technologies and gave the stock a “neutral” rating in a research report on Friday, May 29th. Fox Advisors raised Dell Technologies from an “equal weight” rating to an “overweight” rating and set a $625.00 price objective on the stock in a research note on Wednesday, September 2nd. Finally, CLSA upgraded Dell Technologies to an “outperform” rating in a research report on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat, Dell Technologies currently has a consensus rating of “Moderate Buy” and a consensus price target of $560.72.

Get Our Latest Analysis on DELL

Dell Technologies Company Profile (Get Free Report)

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.

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Nykredit A S bought a new stake in Dell Technologies Inc. (NYSE:DELL – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 95,375 shares of the technology company’s stock, valued at approximately $41,150,000.

Other large investors have also recently made changes to their positions in the company. Parkside Financial Bank & Trust increased its position in shares of Dell Technologies by 13.8% during the second quarter. Parkside Financial Bank & Trust now owns 1,129 shares of the technology company’s stock valued at $487,000 after acquiring an additional 137 shares during the last quarter. Range Advisory LLC purchased a new position in shares of Dell Technologies during the second quarter worth $391,000. Cornerstone Financial Management LLC grew its stake in shares of Dell Technologies by 56.1% in the second quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company’s stock valued at $28,000 after buying an additional 23 shares in the last quarter. Corient Private Wealth LP raised its holdings in shares of Dell Technologies by 20.4% in the 2nd quarter. Corient Private Wealth LP now owns 114,126 shares of the technology company’s stock valued at $49,240,000 after buying an additional 19,304 shares during the period. Finally, Advus Financial Partners LLC purchased a new stake in shares of Dell Technologies in the 2nd quarter valued at $356,000. 76.37% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Dell Technologies Here are the key news stories impacting Dell Technologies this week:

Positive Sentiment: AI server demand remains the main bullish catalyst. Recent coverage points to a rapidly expanding AI backlog, record AI-optimized server revenue, and expectations that server revenue could double. Dell’s collaboration with Axelera AI also adds a lower-power, 45-watt inference option to its server lineup, broadening its addressable market, although no specific orders or revenue were announced. Dell AI server backlog article Positive Sentiment: Share repurchases and index inclusion provide additional support. Dell recently completed a buyback tranche that retired approximately 9.5 million shares, potentially improving per-share earnings. The company is also expected to join the S&P 100 before the open on September 21, which could create incremental demand from index-tracking funds. Dell buyback article Neutral Sentiment: Valuation has become a key investor concern. Dell has rallied dramatically on AI expectations and now trades well above the average analyst price target, increasing the risk of a pullback if backlog growth, margins, or future guidance disappoint. The latest quarterly results were strong, with revenue up 57.7% year over year and earnings substantially above consensus estimates. Negative Sentiment: Silver Lake-affiliated directors continue to sell substantial amounts of stock. Multiple transactions on September 15 and 16 totaled more than $100 million, with several positions reduced by roughly one-third or more. Although the affiliated entities retain significant holdings, the repeated sales may signal profit-taking and create a near-term supply overhang. Dell insider sales filing Insiders Place Their Bets In related news, Director Spv-2 L.P. Sl sold 46,994 shares of Dell Technologies stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $567.88, for a total value of $26,686,952.72. Following the completion of the sale, the director owned 92,330 shares in the company, valued at approximately $52,432,360.40. The trade was a 33.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Silver Lake Partners Iv, L.P. sold 5,300 shares of the stock in a transaction that occurred on Wednesday, September 16th. The stock was sold at an average price of $567.99, for a total value of $3,010,347.00. Following the transaction, the director directly owned 1,385,600 shares in the company, valued at approximately $787,006,944. This represents a 0.38% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,942,790 shares of company stock worth $981,114,426 over the last ninety days. 41.50% of the stock is owned by company insiders. Analyst Upgrades and Downgrades A number of brokerages recently weighed in on DELL. Wolfe Research cut shares of Dell Technologies from a “peer perform” rating to a “peer perform” rating in a report on Friday, May 29th. Melius Research increased their target price on shares of Dell Technologies from $650.00 to $735.00 and gave the stock a “buy” rating in a report on Wednesday, September 2nd. Barclays raised their price target on shares of Dell Technologies from $550.00 to $603.00 and gave the company an “overweight” rating in a research report on Wednesday, September 2nd. Citic Securities upped their price objective on Dell Technologies from $160.00 to $505.00 and gave the stock a “buy” rating in a research report on Monday, June 1st. Finally, Wall Street Zen upgraded Dell Technologies from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $560.24.

Check Out Our Latest Analysis on DELL

Dell Technologies Trading Down 3.3% Shares of DELL stock opened at $569.00 on Friday. The company has a market cap of $368.77 billion, a price-to-earnings ratio of 33.02, a price-to-earnings-growth ratio of 0.61 and a beta of 1.34. The stock has a 50 day simple moving average of $464.52 and a 200-day simple moving average of $338.62. Dell Technologies Inc. has a 12-month low of $110.22 and a 12-month high of $595.51.

Dell Technologies (NYSE:DELL – Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, beating analysts’ consensus estimates of $4.91 by $2.13. Dell Technologies had a negative return on equity of 578.85% and a net margin of 7.53%.The business had revenue of $46.97 billion during the quarter, compared to analysts’ expectations of $44.89 billion. During the same quarter last year, the business posted $1.70 earnings per share. The business’s revenue for the quarter was up 57.7% on a year-over-year basis. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. On average, equities analysts forecast that Dell Technologies Inc. will post 25.14 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be given a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, October 20th. Dell Technologies’s payout ratio is 14.63%.

(Free Report)

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.

Further Reading Five stocks we like better than Dell Technologies J.B. Hunt’s Stock Plunges After Market Misprices Profit Warning 2 Stocks Breaking Out Post-FOMC With One Thing in Common Lennar’s Q3 Miss Hides a Stronger Operating Story Beneath the Housing Slump These 3 Stocks Are Drawing Insider Buyers for Very Different Reasons Want to see what other hedge funds are holding DELL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Dell Technologies Inc. (NYSE:DELL – Free Report).

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Dell Technologies Inc. (NYSE:DELL – Get Free Report) Director Silver Lake Partners De (Aiv sold 41,434 shares of the company’s stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $558.74, for a total transaction of $23,150,833.16. Following the transaction, the director owned 42,533 shares in the company, valued at approximately $23,764,888.42. The trade was a 49.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink.

Dell Technologies Price Performance Shares of NYSE:DELL opened at $563.31 on Thursday. The company has a 50 day moving average of $459.06 and a 200-day moving average of $333.89. The stock has a market cap of $365.09 billion, a price-to-earnings ratio of 32.69, a P/E/G ratio of 0.56 and a beta of 1.34. Dell Technologies Inc. has a one year low of $110.22 and a one year high of $576.75.

Dell Technologies (NYSE:DELL – Get Free Report) last posted its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, beating analysts’ consensus estimates of $4.91 by $2.13. The company had revenue of $46.97 billion for the quarter, compared to the consensus estimate of $44.89 billion. Dell Technologies had a negative return on equity of 578.85% and a net margin of 7.53%.The firm’s quarterly revenue was up 57.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.70 EPS. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. Equities research analysts anticipate that Dell Technologies Inc. will post 25.14 earnings per share for the current year.

Dell Technologies Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Investors of record on Tuesday, October 20th will be given a $0.63 dividend. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.4%. Dell Technologies’s dividend payout ratio is currently 14.63%. Analysts Set New Price Targets Several equities analysts have recently weighed in on DELL shares. Bank of America lifted their price objective on Dell Technologies from $505.00 to $600.00 and gave the company a “buy” rating in a report on Monday, August 31st. Raymond James Financial lifted their price target on shares of Dell Technologies from $500.00 to $617.00 and gave the company an “outperform” rating in a research note on Wednesday, September 2nd. CLSA raised shares of Dell Technologies to an “outperform” rating in a research report on Friday, May 29th. Mizuho raised their price objective on shares of Dell Technologies from $500.00 to $600.00 and gave the stock an “outperform” rating in a report on Wednesday, September 2nd. Finally, Wall Street Zen raised shares of Dell Technologies from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $560.24.

Read Our Latest Research Report on DELL

Key Stories Impacting Dell Technologies Here are the key news stories impacting Dell Technologies this week:

Positive Sentiment: Goldman Sachs raised its outlook for the global server market, projecting it could reach $1.5 trillion by 2030, supported by a 39% compound annual growth rate from 2025. The forecast reinforces expectations for sustained demand for Dell’s AI servers and data-center equipment. Why Dell Technologies stock is gaining Positive Sentiment: Recent coverage highlighted Dell’s record AI-optimized server revenue of $16.4 billion, a raised fiscal 2027 AI-server revenue target of $74 billion, and total revenue guidance of $192 billion. A substantial backlog and ongoing supply constraints suggest growth could remain strong. Dell’s AI server backlog Positive Sentiment: Dell is scheduled to enter the S&P 100 before the open on September 21, which could generate incremental buying from index-tracking funds. The company also expanded its AI ecosystem through a collaboration with Axelera AI for the Europa processing architecture. Dell AI demand and S&P 100 entry Neutral Sentiment: Dell subsidiaries completed a $5 billion senior-notes offering. The proceeds should support liquidity and debt refinancing, although the borrowing highlights the capital requirements of expanding AI infrastructure capacity. Dell senior-notes offering Negative Sentiment: Silver Lake-affiliated directors disclosed additional sales of Dell shares totaling more than $60 million on September 14, following sizable sales on September 11. The transactions create a potential supply overhang, though the affiliated entities continue to hold substantial positions. Dell insider ownership filing Institutional Trading of Dell Technologies A number of institutional investors have recently made changes to their positions in the business. ProShare Advisors LLC lifted its holdings in shares of Dell Technologies by 10.5% in the fourth quarter. ProShare Advisors LLC now owns 80,686 shares of the technology company’s stock worth $10,157,000 after acquiring an additional 7,642 shares during the last quarter. United Super Pty Ltd in its capacity as Trustee for the Construction & Building Unions Superannuation Fund bought a new position in Dell Technologies in the 4th quarter valued at approximately $23,332,000. Plato Investment Management Ltd acquired a new stake in Dell Technologies in the second quarter valued at approximately $5,913,000. Gabelli Funds LLC grew its stake in shares of Dell Technologies by 49.0% during the first quarter. Gabelli Funds LLC now owns 46,094 shares of the technology company’s stock worth $7,565,000 after buying an additional 15,150 shares during the last quarter. Finally, MUFG Securities EMEA plc grew its stake in shares of Dell Technologies by 112.9% during the fourth quarter. MUFG Securities EMEA plc now owns 12,356 shares of the technology company’s stock worth $1,555,000 after buying an additional 6,553 shares during the last quarter. Institutional investors own 76.37% of the company’s stock.

(Get Free Report)

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.

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Dell Technologies shares DELL rose more than 5% in trading on Wednesday as Goldman Sachs raised its forecast for the global server market, highlighting continued expectations for strong growth in artificial intelligence infrastructure.

Goldman Sachs now expects the overall server market to reach $1.5 trillion by 2030, representing a compound annual growth rate (CAGR) of 39% from 2025 to 2030.

The investment bank projects the AI server market to reach $1.3 trillion by 2030, with a 46% CAGR.

Traditional servers are expected to reach approximately $192 billion, growing at a 17% CAGR over the same period.

Goldman Sachs said Dell's market share in traditional servers increased to 29% in the second quarter, while its share of the AI server market reached 17%.

NVIDIA remains the largest player in the AI server market, with a 42% market share, according to Goldman Sachs. White-box manufacturers account for another 24%.

The investment bank said the AI server market remains dominated by chipmakers and white-box manufacturers, leaving limited room for branded server vendors.

Despite that market structure, Goldman Sachs maintained a Buy rating on Dell, with a price target of $570.

The firm also maintained a Buy rating on Hewlett Packard Enterprise (HPE), with a $75 price target, while retaining a Sell rating on Super Micro Computer (SMCI), with a $34 price target.

Dell's Wednesday gain comes as investors continue to focus on the company's role in supplying infrastructure for the expansion of AI data centres.

Alongside the market move, four Silver Lake-affiliated entities filed notices to sell a combined 80,010 Class C Dell shares worth approximately $42.75 million, according to Form 144 filings submitted the previous day.

The sellers were Silver Lake Partners IV, Silver Lake Partners V DE, Silver Lake Technology Investors IV and Silver Lake Technology Investors V.

The shares were converted from Class B stock into Class C shares on the same day before the proposed sales. Merrill Lynch was listed as the broker, while the New York Stock Exchange was named as the exchange.

Form 144 filings are notices of proposed sales and do not confirm that all of the shares were ultimately sold.

The latest filings add to a broader sell-down by Silver Lake and related entities.

SEC filings show that Silver Lake-affiliated entities and related holders sold approximately 1.86 million Dell shares between June 9 and September 8, with the pace accelerating in September.

AI infrastructure remains key to Dell rallySilver Lake has longstanding ties to Dell. The private-equity firm partnered with Michael Dell in 2013 to take the company private, providing equity financing alongside Dell and other investors.

Dell later returned to public markets through the VMware-related transaction, while Silver Lake remained a major shareholder.

The recent selling comes as Dell shares have rallied amid investor interest in the company's AI infrastructure business.

Strong demand for AI-optimised servers has raised expectations for Dell's revenue and earnings. Recent results highlighted record AI server orders and a sharply higher earnings trajectory.

The company's shares have also benefited from the broader AI infrastructure trade as investors focus on businesses supplying equipment and technology for the ongoing data-centre buildout.

Dell Technologies (DELL +4.45%) stock recently hit a new all-time high. The tech company, known for its customizable computers, has been experiencing a surge in demand due to artificial intelligence (AI). AI servers have been selling fast, propping up the company's top and bottom lines in the process, and leading to significant gains for investors.

Year to date, the tech stock is up over 320% as of Monday's close, making it one of the best-performing stocks within the S&P 500. While Dell's been performing exceptionally well of late, the inevitable question many investors may be asking right now, however, is whether it's too late to invest in the stock. Has Dell's stock become too expensive to buy, or can it still go higher?

Image source: Getty Images.

Why Dell's stock doesn't look terribly expensiveThe good news for investors is that it isn't simply hype that's fueling the stock. Strong financial results back Dell's performance this year. That's evident in its valuation, as the stock is trading at 31 times its trailing earnings. And its forward price-to-earnings multiple, which is based on analyst expectations of its future earnings, is right around 21, which is in line with what the average S&P 500 stock trades at.

Based on Dell's tremendous growth and the encouraging prospects it has ahead, with companies continuing to invest in AI infrastructure, the outlook remains promising for the stock. The company generated 58% revenue growth in its most recent quarter (which went up until the end of July), as its top line came in at just under $47 billion. Its earnings growth was even more impressive, with its net income totaling $4.1 billion -- more than triple the roughly $1.2 billion it generated in the same period a year ago.

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Dell's stock still looks promisingAs well as Dell has done of late, there's ample reason for investors to remain bullish, as the stock can still go higher. Its valuation isn't outlandish given the level of growth that Dell's been generating. As tech companies continue to invest heavily in AI, demand for Dell's products will remain robust. The company is seeing broad growth across the board, with AI servers being in high demand as well as traditional servers, networking products, and storage products.

With a high growth rate and a reasonable valuation, I wouldn't be surprised to see Dell's stock rise even higher in the weeks and months ahead, as it may be a great option for growth investors right now.

Shares of Dell (DELL +11.97%) jumped over 8% this past week after analysts highlighted the computer maker's strong artificial intelligence (AI)-fueled expansion prospects.

Image source: Getty Images.

AI is a boon for Dell Dell's revenue leaped 58% year over year to $47 billion in its most recent quarter. Its adjusted earnings per share, in turn, rocketed 203% to $7.04.

Rising interest in agentic AI is driving demand for both GPU- and CPU-based computing infrastructure. Sales of the tech giant's AI-optimized servers surged 100% to $16.4 billion, while revenue in its traditional servers and networking segment soared 122% to $10.5 billion.

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RBC Capital Markets analyst David Paige sees more gains ahead for Dell, driven by rising IT spending from businesses and governments alike.

"With no signs of slowing, we believe Dell continues to be well-positioned to benefit from a multi-year AI infrastructure spending cycle," Paige said.

Paige also noted that Dell's well-constructed production network gives it an edge over its rivals, many of whom are struggling to obtain the processor and memory chips they need due to manufacturing bottlenecks.

"Dell's best-in-class supply chain represents a competitive moat that differentiates the company during periods of supply disruption," Paige said.

In turn, Paige assigned an outperform rating and a $640 price forecast on Dell's stock. His new price target represents potential gains of roughly 13% from the stock's closing price on Friday.

All's clear, for now The major risk for Dell's shareholders is a slowdown in AI-related infrastructure spending, which would likely prompt investors to take some gains off the table. But as long as companies' earnings announcements and analyst reports suggest the AI boom is set to continue, Dell's share price could keep setting new highs.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Shares of Dell Technologies (DELL +11.97%) surged as much as 12% on Friday, touching a fresh 52-week high. The hardware giant's stock has more than quintupled from its 52-week low as of this writing.

Much of the latest leg has come since the company posted fiscal 2027 second-quarter results (the quarter ended July 31, 2026) on Sept. 1.

One comparison in that report stands out to me above everything else: Customers ordered $60.9 billion of artificial intelligence (AI) servers during the fiscal second quarter. Dell's total revenue (across servers, storage, and PCs) came in at $47 billion.

Those are two different kinds of numbers, to be sure. An order is a booking, a commitment that becomes revenue only when Dell builds and delivers the machines. Revenue is what the company recognized in the period.

Demand, in other words, is no longer the debate. What the next two years of earnings look like depends on how quickly Dell converts those commitments into delivered servers, and on what the conversion costs.

Image source: The Motley Fool.

Demand is outrunning the income statementThe fiscal second quarter itself was exceptional. Not only did revenue climb 58% year over year, reaching a record $47 billion, but non-GAAP (adjusted) earnings per share also tripled to $7.04. Dell recognized a record $16.4 billion of AI server revenue, up 100% year over year. And with $60.9 billion of new orders coming in, it exited the quarter with a record $95 billion backlog.

Dell booked $24.4 billion of AI orders and recognized $16.1 billion of AI server revenue in the fiscal first quarter. In other words, orders more than doubled sequentially while recognized revenue barely budged.

Management now calls for $192 billion of full-year revenue, a $25 billion increase from its previous outlook and 69% above last year. AI server revenue guidance went from $60 billion to $74 billion, and adjusted earnings per share guidance now sits at $25.50, up 148% year over year.

Can Dell build servers fast enough?Dell has recognized about $16 billion of AI server revenue in each of the last two quarters. I'd argue the limit right now is how fast the company can build and deliver servers, not how many customers want them.

To hit $74 billion for the full year, the second half needs to accelerate to about $41.5 billion of AI server revenue -- nearly $21 billion a quarter. And even at the faster pace, the backlog represents more than a year of AI server revenue before any new orders.

The margin worry, at least, eased this quarter. Dell's infrastructure segment revenue soared 89% year over year to $31.8 billion, and the segment's operating margin came in at 15%, expanding from the fiscal first quarter's 10.5% and from 8.8% a year earlier, helped by what Dell calls disciplined pricing. That expansion came despite what the company describes as substantial inflation in memory component costs.

The cash hasn't caught up yetHowever, all of that growth is consuming cash first. Operating cash flow slipped to $2.2 billion, from $2.5 billion a year earlier, even as net income more than tripled to $4.1 billion. Inventories have doubled since the end of January to $21.3 billion as Dell stockpiles components and builds against its backlog. And financing receivables (money Dell's in-house financing arm lends customers to pay for their purchases) climbed to $20.4 billion from $14.3 billion over the same stretch. Dell's adjusted free cash flow, which adds that lending back, did come in at $8.1 billion, up 224% year over year.

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Dell also priced a $5 billion senior notes offering this week, partly to repay notes coming due this year. Sure, funding a build-out of this size takes working capital, and Dell can borrow at reasonable rates. But reported earnings are running well ahead of collected cash for now -- and the next two years of profits depend on those orders turning into delivered, paid-for systems on schedule.

Where does that leave the stock? Shares trade around $562 as of this writing -- about 33 times the company's earnings over the past 12 months, but about 22 times the adjusted earnings per share now guided for this fiscal year. For a company guiding for nearly 70% revenue growth, that price-to-earnings multiple is arguably fair, as long as the conversion stays on schedule.

Ultimately, I wouldn't chase the stock after Friday's surge. For investors who already own shares, I think the backlog is a good reason to keep holding.

And if operating cash flow starts catching up with those record profits over the next couple of quarters, I'd consider buying, even at a higher price.

Dell Technologies Inc (NASDAQ:DELL) shares hit an all-time high above $562, up 11% on Friday after RBC Capital Markets initiated coverage with an Outperform rating and a $640 price target.

RBC's initiation cited enterprise demand for AI investments, compute modernization, storage expansion and PC refresh, which the firm said should sustain results above Dell's long-term targets.

Analysts pointed to Dell's end-to-end portfolio spanning compute, PCs, storage and servers, along with its installed base, supply chain and flexible consumption options, as factors positioning the company to keep gaining market share.

The firm also flagged Dell's IP mix shift and AI server growth as meaningful operating margin expansion drivers for its Infrastructure Solutions Group, and said robust free cash flow generation supports shareholder-friendly capital allocation.

Dell reported record fiscal second-quarter 2027 revenue of approximately $47 billion, up 58% year-over-year, with adjusted earnings per share of $7.04 that beat estimates. Management raised full-year fiscal 2027 revenue guidance by $25 billion to roughly $192 billion.

The company's AI server backlog reached $95 billion, with more than $60.9 billion in new AI orders booked during the quarter. Dell said the backlog provides multi-year revenue visibility extending into fiscal year 2028.

Dell is scheduled to join the S&P 100 index in September 2026.

Dell Technologies (DELL -3.82%) booked $61 billion in artificial intelligence (AI) server orders during the second quarter (Q2), up from $24 billion in Q1. The AI build-out continues to fuel its pipeline, which COO Jeff Clarke says "remains multiples of our backlog."

AI server revenue grew 100% to $16.4 billion, and traditional servers and networking revenue rose 122% year over year. Total revenue climbed 58% to a record $47 billion, and the company now expects growth of around 70% for the full year.

Adjusted earnings per share of $7.04 came in well above analyst estimates of roughly $5, and management raised guidance to $25.50 for the year. Is this still an opportunity for investors? 

Image source: Getty Images.

Two distinct sources of demand Dell's results have been driven by high-volume, concentrated orders from "neoclouds," sovereign clients, and large enterprises. These customers are purchasing Dell's AI Factory, a package of servers, storage, and networking designed to run AI workloads in a customer's own data center. The AI backlog now stands at $95 billion, up from $51.3 billion last quarter.

At the same time, the company's traditional hardware business is generating the margin. Corporations are refreshing fleets to free room and power for AI. Dell's upcoming 18th-generation PowerEdge server can replace 12 to 14 older machines, driving efficiency gains for customers. This demand extends to storage, where Dell-branded platforms are gaining share and carry higher margins than AI servers.

Dell's competitive edge comes from integration and logistics. Enterprises are buying complete, tested systems, and some projects require "upwards of 50 unique designs," according to Clarke. The ability to deploy complex hardware at scale is what separates Dell from competitors focused on price.

Memory costs and margins Rising memory costs have been a concern, but operating income for the infrastructure segment (ISG) grew 225% to $4.8 billion, and margins expanded 620 basis points to 15%. Management attributed the results primarily to the scale of its operations, which contributed over 400 basis points of margin improvement.

Still, investors should consider the nature of the business. Product revenue grew 72% in the quarter, while services revenue was flat at $5.9 billion. This highlights the hardware-heavy model that has historically resulted in a below-market multiple for Dell.

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Shares are up 16% since the earnings report and now trade at roughly 18 times forward earnings. That's a premium to its five-year average of 10, which reflects a cyclical hardware business with little high-margin recurring revenue.

The premium is earned given the trajectory of earnings growth and the sheer scale and breadth of this cycle. For long-term investors, the duration will matter most. I think the stock is worth owning, but would wait for a pullback to deploy fresh capital. For now, management reports that the pipeline of new orders is still building.

Baird Financial Group Inc. trimmed its position in Dell Technologies Inc. (NYSE:DELL – Free Report) by 14.8% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 233,210 shares of the technology company’s stock after selling 40,655 shares during the quarter. Baird Financial Group Inc.’s holdings in Dell Technologies were worth $100,621,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of the company. Commonwealth Retirement Investments LLC bought a new position in shares of Dell Technologies in the fourth quarter worth $25,000. Rossby Financial LCC boosted its stake in Dell Technologies by 968.4% during the fourth quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock valued at $26,000 after buying an additional 184 shares during the period. Cornerstone Financial Management LLC grew its position in Dell Technologies by 56.1% during the second quarter. Cornerstone Financial Management LLC now owns 64 shares of the technology company’s stock worth $28,000 after buying an additional 23 shares in the last quarter. Navalign LLC bought a new position in Dell Technologies in the 4th quarter worth about $29,000. Finally, Kemnay Advisory Services Inc. bought a new position in Dell Technologies in the 4th quarter worth about $29,000. 76.37% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades DELL has been the subject of a number of research analyst reports. Susquehanna set a $289.00 price target on Dell Technologies and gave the company a “neutral” rating in a research report on Friday, May 29th. Jefferies Financial Group cut shares of Dell Technologies to a “hold” rating in a research report on Monday, June 1st. William Blair initiated coverage on shares of Dell Technologies in a research note on Monday, June 1st. They issued a “neutral” rating on the stock. UBS Group reissued an “outperform” rating on shares of Dell Technologies in a research note on Wednesday, September 2nd. Finally, Citic Securities increased their price target on shares of Dell Technologies from $160.00 to $505.00 and gave the stock a “buy” rating in a report on Monday, June 1st. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, Dell Technologies presently has an average rating of “Moderate Buy” and a consensus price target of $553.79.

Read Our Latest Research Report on Dell Technologies Insider Activity In other news, Director Silver Lake Partners Iv, L.P. sold 91,191 shares of the firm’s stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $517.34, for a total value of $47,176,751.94. Following the transaction, the director owned 64,209 shares in the company, valued at approximately $33,217,884.06. This trade represents a 58.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Spv-2 L.P. Sl sold 83,006 shares of Dell Technologies stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $517.34, for a total transaction of $42,942,324.04. Following the completion of the transaction, the director directly owned 73,185 shares in the company, valued at approximately $37,861,527.90. The trade was a 53.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 1,248,199 shares of company stock worth $558,352,352. Company insiders own 41.50% of the company’s stock.

Dell Technologies Price Performance Shares of DELL opened at $533.27 on Wednesday. Dell Technologies Inc. has a 1 year low of $110.22 and a 1 year high of $538.47. The stock has a 50 day simple moving average of $443.55 and a two-hundred day simple moving average of $316.11. The firm has a market cap of $345.62 billion, a P/E ratio of 30.95, a P/E/G ratio of 0.54 and a beta of 1.34.

Dell Technologies (NYSE:DELL – Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 earnings per share for the quarter, topping analysts’ consensus estimates of $4.91 by $2.13. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The firm had revenue of $46.97 billion during the quarter, compared to analyst estimates of $44.89 billion. During the same period in the previous year, the business posted $1.70 EPS. The business’s quarterly revenue was up 57.7% on a year-over-year basis. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. On average, equities analysts anticipate that Dell Technologies Inc. will post 25.14 earnings per share for the current year.

Dell Technologies Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Friday, October 30th. Stockholders of record on Tuesday, October 20th will be paid a dividend of $0.63 per share. This represents a $2.52 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Tuesday, October 20th. Dell Technologies’s dividend payout ratio (DPR) is 14.63%.

Trending Headlines about Dell Technologies Here are the key news stories impacting Dell Technologies this week:

Positive Sentiment: Record AI server orders of $60.9 billion helped drive quarterly revenue to $46.97 billion, while earnings of $7.04 per share exceeded the $4.91 consensus estimate. The results reinforce expectations for rapid growth in AI-related infrastructure. Dell Q2 2027 Earnings Call Transcript Positive Sentiment: Coverage emphasizes that Dell is benefiting from an “on-premise” AI buildout, as enterprises install servers and AI systems internally rather than relying exclusively on public cloud providers. This broadens the potential demand opportunity beyond hyperscale data centers. Dell’s latest reinvention and on-premise AI Positive Sentiment: Analysts and financial commentators continue to raise Dell’s profile as a leading AI infrastructure investment, citing surging earnings, strong demand and the company’s roughly $95 billion AI backlog. Wall Street optimism has supported the stock’s recent momentum. Wall Street raises Dell targets after earnings Neutral Sentiment: Dell’s consumer PC business is also expanding with the lower-priced Dell 14S laptop, supported by improving PC demand. However, competition from HP and Apple limits the significance of this opportunity relative to the much larger AI server business. Dell expands consumer PC reach Negative Sentiment: At roughly $524 per share after a gain of more than 300% over the past year, valuation and execution risk are becoming more important. Investors are questioning how much of the AI backlog will convert into revenue and profitable margins, while the stock’s proximity to its high leaves less room for disappointment. Is Dell Making Money Where You Think It Is? Dell Technologies Company Profile (Free Report)

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.

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Nvidia and Micron Technology are among the most important companies in the artificial intelligence (AI) infrastructure ecosystem, providing mission-critical chips that facilitate the training of large language models (LLMs) and help run inference workloads in data centers.

Nvidia dominates the AI data center accelerator market with an estimated 80% share, which explains why the company has been clocking terrific growth quarter after quarter. Micron, meanwhile, is benefiting from the strong demand for memory chips used by Nvidia and other chip designers to enable the rapid transfer of large data sets in AI data centers.

Importantly, both semiconductor stocks seem capable of delivering solid gains to investors over the long run, driven by their ability to sustain healthy growth rates amid booming demand for AI infrastructure. However, there is another AI infrastructure stock that's outperforming Nvidia and Micron stock this year -- Dell Technologies (DELL +1.50%).

Let's see why that has been the case.

Image source: The Motley Fool.

Strong AI server demand has supercharged Dell's growthDell stock has soared 316% this year, eclipsing the 256% surge in Micron stock and a 23% jump in Nvidia's shares. The booming demand for AI servers, which are used to mount chips designed and manufactured by Nvidia, Micron, and others, has been instrumental in driving Dell's impressive rally.

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Fortune Business Insights estimates that the AI server market could grow from $262 billion in 2026 to $2.85 trillion in 2034 at a compound annual growth rate (CAGR) of nearly 35%. Dell is one of the leading players in this market, which explains why its latest quarterly results crushed Wall Street's expectations.

Dell released fiscal 2027 second-quarter results (for the quarter ended July 31) on Sept. 1. The company's quarterly revenue shot up 58% year over year to a record $47 billion. Dell's non-GAAP earnings-per-share growth was even more stellar at 203%, reaching a record $7.04 last quarter. Analysts would have settled for $4.92 in earnings per share on revenue of $44.9 billion.

Dell noted that it sold $16.4 billion worth of AI servers last quarter. Importantly, the company received a record $60.9 billion in AI server orders during the quarter, suggesting that its future revenue pipeline is expanding at a robust pace. It is also worth noting that Dell finished the quarter with a record AI order backlog of $95 billion.

Management also pointed out that its potential revenue pipeline is in "multiples of our backlog," which isn't surprising, given the tremendous long-term growth opportunity in AI servers. The company now expects its AI server revenue to increase 3x in fiscal 2027 to $74 billion. That's well above the overall AI server market's growth rate.

We have already seen that Fortune Business Insights anticipates the AI server market to clock $262 billion in revenue this year. Dell's AI server revenue forecast for this year suggests that it is on track to control 28% share of this market in 2026. More importantly, it could become a bigger player in the AI server market due to its sizable backlog.

Not surprisingly, analysts are now expecting stronger growth from Dell.

DELL Revenue Estimates for Current Fiscal Year data by YCharts

Robust growth and an attractive valuation suggest more upside for investorsDell has increased its fiscal 2027 guidance. It now expects non-GAAP earnings per share of $25.50 this year, a terrific 148% jump over last year. The following chart suggests that Dell's earnings growth could slow down in fiscal 2028 before accelerating the following year.

DELL EPS Estimates for Current Fiscal Year data by YCharts

However, that's unlikely to be the case. Dell's earnings-per-share growth could be way stronger next year, thanks to the rapid growth of the AI server market and its substantial share of this space. So, don't be surprised to see analysts ramp up their earnings-per-share expectations.

The good part is that Dell trades at an attractive 28 times forward earnings despite its multibagger performance in 2026. That's almost in line with the tech-laden Nasdaq-100 index's forward earnings multiple of 24. It ideally deserves to trade at a premium owing to the triple-digit earnings growth it has been clocking, and its ability to outperform consensus expectations.

Assuming Dell's earnings per share reach $34.56 in fiscal 2029 and it trades at 30 times earnings, this AI stock could jump to $1,037. That's almost double its current stock price, though I won't be surprised to see Dell delivering bigger gains on the back of a potentially larger improvement in earnings.

So, investors looking to add a top AI infrastructure stock to their portfolios right now should take a closer look at Dell, as it is well-positioned to sustain its red-hot rally by capitalizing on the secular growth of the AI server market.