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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.

SummaryHeading into the Q2 print, I expected another full-year guide increase. Dell raised FY27 sales guidance by $25 billion. I did not expect anything close to that.ISG's operating margin jumped to 15.0% from 8.8% a year ago. I was expecting AI servers to keep dragging margins lower.The AI backlog jumped $43.7 billion sequentially to $95 billion.Traditional server sales increased 23% sequentially, and storage was up 12% QoQ. That said, AI server revenue grew just 2% (see the previous bullet point for the backlog).I upgrade to a buy. I think Q2 FY27 was a table-pounding moment for Dell to prove that Q1 FY27 (Dell was up 32% the day after that print) was not a one-off quarter. ekapol/iStock via Getty Images

Alright, I promise that this time, I won't start a Dell Technologies (DELL) article mentioning Trump's enthusiasm for their laptops/PCs.

I think the blowout FY27 guidance (revised upward by $25B) and the jump in backlog (up $43.7B sequentially) are taking the

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in DELL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a registered investment adviser, broker, dealer, or tax professional. This article, including any comments or replies I post, reflects my personal opinions only and is provided for informational and educational purposes. Nothing I write is investment, legal, tax, or financial advice, or a personalized recommendation to buy, sell, hold, or short any security. My views may change without notice. Nothing I write is tailored to any reader’s objectives, financial situation, risk tolerance, or portfolio. Investing involves risk, including possible loss of principal. Readers should conduct their own research and consult a qualified professional before making investment decisions.

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Dell Technologies Inc. (NYSE:DELL – Get Free Report)’s stock price rose 4.2% during trading on Thursday after Fox Advisors upgraded the stock from an equal weight rating to an overweight rating. Fox Advisors now has a $625.00 price target on the stock. Dell Technologies traded as high as $530.78 and last traded at $512.66. Approximately 20,127,319 shares were traded during mid-day trading, an increase of 141% from the average daily volume of 8,354,781 shares. The stock had previously closed at $492.20.

Several other brokerages have also weighed in on DELL. Royal Bank Of Canada initiated coverage on Dell Technologies in a report on Friday, May 29th. They set an “outperform” rating for the company. Loop Capital boosted their target price on Dell Technologies from $150.00 to $550.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Wolfe Research downgraded Dell Technologies from a “peer perform” rating to a “peer perform” rating in a research note on Friday, May 29th. Melius Research lifted their price objective on Dell Technologies from $650.00 to $735.00 and gave the stock a “buy” rating in a report on Wednesday. Finally, UBS Group restated an “outperform” rating on shares of Dell Technologies in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $553.79.

View Our Latest Stock Report on DELL

Insider Buying and Selling at Dell Technologies In other news, Director Silver Lake Partners Iv, L.P. sold 138,885 shares of Dell Technologies stock in a transaction on Monday, June 8th. The stock was sold at an average price of $398.13, for a total value of $55,294,285.05. Following the completion of the transaction, the director directly owned 8,585 shares in the company, valued at approximately $3,417,946.05. The trade was a 94.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Spv-2 L.P. Sl sold 131,040 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $398.13, for a total transaction of $52,170,955.20. Following the sale, the director directly owned 12,619 shares in the company, valued at $5,024,002.47. This trade represents a 91.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,527,629 shares of company stock valued at $619,325,485. 41.50% of the stock is owned by company insiders. More Dell Technologies News Here are the key news stories impacting Dell Technologies this week:

Positive Sentiment: Dell reported record quarterly revenue of approximately $46.97 billion, up nearly 58% year over year, while adjusted EPS of $7.04 exceeded the $4.91 consensus estimate. Dell shares gain after strong AI server demand boosts annual forecast Positive Sentiment: AI server orders reached a record $60.9 billion, helping expand Dell’s AI-related backlog to roughly $95 billion. The backlog provides significant revenue visibility and reinforces the view that AI capital spending is translating into hardware sales. Dell AI Server Momentum Accelerates With Record AI Orders Positive Sentiment: Management raised fiscal 2027 revenue guidance to approximately $192 billion from $167 billion and increased adjusted EPS guidance to $25.50 from $17.90. The higher outlook, Dell’s fifth consecutive revenue-guidance beat, prompted several analysts to lift price targets; JPMorgan raised its target to $635 while maintaining an Overweight rating. Dell shares rise as demand jumps for AI servers Positive Sentiment: Investors are increasingly viewing Dell as a key “picks-and-shovels” beneficiary of AI, particularly as enterprises consider on-premises infrastructure to control cloud-computing and AI token costs. Strong results from Broadcom and Hewlett Packard Enterprise have further supported the broader AI infrastructure trade. AI Infrastructure Demand Remains Red-Hot Institutional Trading of Dell Technologies Several large investors have recently modified their holdings of the business. California State Teachers Retirement System increased its position in Dell Technologies by 41,141.5% during the 2nd quarter. California State Teachers Retirement System now owns 198,605,353 shares of the technology company’s stock valued at $85,690,266,000 after purchasing an additional 198,123,786 shares during the period. Norges Bank bought a new position in shares of Dell Technologies in the 4th quarter worth about $607,349,000. Wellington Management Group LLP grew its holdings in Dell Technologies by 4,279.1% in the third quarter. Wellington Management Group LLP now owns 3,005,776 shares of the technology company’s stock worth $426,129,000 after purchasing an additional 2,937,137 shares during the period. Invesco Ltd. increased its stake in shares of Dell Technologies by 50.4% during the fourth quarter. Invesco Ltd. now owns 7,301,008 shares of the technology company’s stock valued at $919,051,000 after purchasing an additional 2,445,854 shares in the last quarter. Finally, Michael & Susan Dell Foundation increased its position in Dell Technologies by 533.3% during the 4th quarter. Michael & Susan Dell Foundation now owns 2,682,335 shares of the technology company’s stock valued at $337,652,000 after buying an additional 2,258,797 shares in the last quarter. 76.37% of the stock is owned by institutional investors.

Dell Technologies Stock Performance The stock has a market cap of $332.26 billion, a PE ratio of 29.75, a price-to-earnings-growth ratio of 0.89 and a beta of 1.34. The firm has a 50-day moving average price of $436.67 and a 200-day moving average price of $307.41.

Dell Technologies (NYSE:DELL – Get Free Report) last posted its earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.91 by $2.13. The business had revenue of $46.97 billion for the quarter, compared to analysts’ expectations of $44.89 billion. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The business’s revenue for the quarter was up 57.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $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. As a group, sell-side analysts anticipate that Dell Technologies Inc. will post 18.22 EPS for the current fiscal year.

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

(Get Free Report)

Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments.

Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions.

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Key Takeaways Dell's Q2 EPS smashed Wall Street consensus estimates by 41%.The company is on track to double revenue and EPS by 2028.Unlike many AI peers, Dell has demonstrated market resilience recently. Dell Blows Away Wall Street ExpectationsTuesday night, Zacks Rank #1 (Strong Buy) stock Dell Technologies ((DELL - Free Report) ) delivered arguably the most impressive earnings report this quarter. Dell reported earnings per share of $7.04, trouncing the Zacks Consensus Estimate $4.97 by 41.65%. Meanwhile, positive earnings surprises are nothing new to Dell investors. The AI leader has beaten Zacks Consensus Estimates in 18 of the past 20 quarters.

Image Source: Zacks Investment Research

Why Dell’s Earnings Were So StrongDell Technologies is a leading global IT infrastructure and enterprise hardware provider. Although Dell is best-known as a legacy PC manufacturer, the company has benefited dramatically from the artificial intelligence buildout. In fact, in the second-quarter, Dell notched several records including, record revenue, record AI server revenue, record traditional server/networking revenue, record storage revenue, and record operating income. Overall revenue jumped 89% year over year. Meanwhile traditional server and networking revenue exploded 122%, while AI-optimized server revenue doubled year over year.

Why Dell’s Earnings Will Continue to Be StrongAlthough Dell’s Q2 growth was staggering, it’s likely just beginning. On the earnings call, management raised the company’s outlook and said: “Inference is past training and is pure demand in our industry. We think the tokens that inference drives is going to grow 87 times to 3600 quadrillion tokens by 2030. Training demand grows five x to 850 Z flops by 2030. Enterprise Agentic is expected to be the single largest workload by 2028. We’re expecting AI to be 75% of all data center demand by 2030.”

Meanwhile, Wall Street analysts echo management’s bullish sentiment. Zacks Consensus Analyst Estimates suggest that revenue and earnings per share will again double by 2028, continuing the company’s hockey-stick like growth trajectory.

Image Source: Zacks Investment Research

Dell Technical View: Relative Strength Vs. AI PeersWhile most AI leaders fell below their 50-day moving averages in July and August, Dell shares held the level. In fact, DELL has held the 50-day moving average since February and is once again testing it here.

Image Source: Zacks Investment Research

Bottom Line

Dell’s latest earnings results prove that its transformation from a legacy PC manufacturer to a core AI infrastructure provider. For long-term growth investors looking to capitalize on the next era of data center expansion, Dell continues to prove why it stands out as a market leader.

For years, companies viewed the data center as a necessary expense—an asset to maintain, not a business advantage. Dell Technologies Inc. (NYSE:DELL) now says that mindset is changing, arguing that enterprises are increasingly treating their infrastructure as a value creator as AI adoption accelerates.

That shift, more than any single product launch, could explain why the company remains confident that demand for AI infrastructure has staying power.

Dell’s Data Center ShiftThe idea surfaced during Dell’s second-quarter earnings call when an analyst asked whether the company’s strong server growth reflected genuine demand or merely pricing and customer pre-buys.

Rather than pointing to a temporary spike, management described a structural change in how enterprises are investing in their data centers.

“We’re seeing signs where the data center is turning from this cost center approach to a value creator,” Chief Financial Officer David Kennedy said. “The ecosystem and the enterprise customers that we’re seeing are starting to embrace that.”

Chief Operating Officer Jeff Clarke pointed to an ongoing modernization cycle that extends well beyond AI servers. Enterprises are replacing aging infrastructure with systems that deliver more computing power, memory and storage while consuming less space and energy.

“There’s a modernization in the data center,” Clarke said. “That modernization continues to drive consolidation… driving demand for new servers that have more cores, new servers that have more DRAM, and new servers that have more storage.”

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Why Dell Sees Durable DemandDell’s argument is that AI isn’t replacing traditional enterprise infrastructure spending—it’s amplifying it.

According to Clarke, the company still has approximately 1.2 million servers in its installed base that are at least two generations old and need to be upgraded. At the same time, new security requirements, including post-quantum cryptography, are forcing customers to modernize systems that were already nearing the end of their useful lives.

“Increasingly we’re seeing enterprises drive AI workloads, specifically agentic workloads,” Clarke said, adding that AI demand is complementing, rather than displacing, the broader refresh cycle.

That narrative also helps explain why Dell’s traditional server business outpaced AI compute during the quarter. Management attributed the strength to enterprise customers upgrading core infrastructure while preparing for more AI-intensive workloads.

What It Means for InvestorsDell’s most important message this quarter wasn’t simply that AI demand remains strong—it was that enterprise infrastructure spending may be undergoing a broader transformation. By arguing that data centers are becoming strategic assets rather than operating expenses, management is making the case that the current investment cycle extends beyond GPU deployments and into a multiyear modernization wave.

For investors, the next question isn’t whether AI demand remains healthy. It’s whether enterprises continue treating infrastructure as a source of competitive advantage rather than just another IT budget line. If Dell is right, that would support a longer runway not only for its AI servers, but also for its traditional server, storage and networking businesses.

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Dell Technologies Inc. (NYSE:DELL) posted its fiscal year 2027 second-quarter results after Tuesday’s closing bell, beating expectations across the board. Here’s a look at the details inside the report. 

DELL stock is moving. Watch the price action here. Dell Q2 Details   
Dell Technologies reported an adjusted/non-GAAP diluted EPS of $7.04 per share, which blew past the consensus estimate of $4.91 by 43.38%.

Quarterly revenue came in at $46.97 billion, which beat the Street estimate of $44.95 billion and was up from $29.78 billion in the same period last year.

Dell reported the following second-quarter segment results:

Infrastructure Solutions Group (ISG)

Record revenue: $31.8 billion, up 89% year-over-year Record AI-Optimized Servers revenue: $16.4 billion, up 100% year-over-year Record Traditional Servers and Networking revenue: $10.5 billion, up 122% year-over-year Record second-quarter Storage revenue: $4.9 billion, up 26% year-over-year Record operating income: $4.8 billion, up 225% year-over-year Client Solutions Group (CSG)

Revenue: $15 billion, up 20% year over year Record Commercial Client revenue: $13.2 billion, up 22% year-over-year Consumer revenue: $1.8 billion, up 7% year-over-year Operating income: $1.1 billion, up 42% year-over-year “IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly — creating opportunity across our portfolio,” said COO Jeff Clarke.

“That’s clearest in our AI server business where we booked a record $60.9 billion in orders, recognized a record $16.4 billion in revenue and exited the quarter with a record $95 billion backlog,” Clarke added.

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Looking AheadDell expects third-quarter adjusted EPS of $6.50, versus the $4.49 analyst estimate, and revenue of $49 billion, versus the $41.43 billion estimate.

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DELL Stock Price: According to data from Benzinga Pro, Dell stock was up 8.47% to $461 in Tuesday’s extended trading.  

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Dell Technologies (DELL -0.05%) reports its fiscal 2027 second-quarter results on Tuesday, Sept. 1, with a conference call set for 3:30 p.m. Central time. One line in that report interests me more than the revenue number, the earnings number, or the size of the artificial intelligence (AI) order backlog. It's the operating margin of Dell's infrastructure solutions group, the segment that builds the servers powering the AI build-out.

That's because memory prices have been climbing across the chip industry, and the companies that design AI chips have spent recent weeks describing what those costs are doing to their own margins.

Dell sits further down the same supply chain. It buys memory in huge volumes and assembles it into finished servers. If rising component costs are going to squeeze anyone's margins, the assembler is where the squeeze should show up first.

Tuesday's report gives investors their first good look at the answer.

Image source: Getty Images.

The margin already stepped down onceDell's infrastructure solutions group posted record first-quarter revenue of $29 billion, up 181% year over year. AI-optimized servers (machines built around graphics processing units and high-end memory) drove it, contributing $16.1 billion of revenue, nearly double the fiscal fourth quarter's $9 billion. And the company booked $24.4 billion of new AI server orders during the quarter. The rest of the segment grew, too -- traditional servers and networking revenue rose 92% year over year to $8.5 billion, while storage grew 8% to $4.3 billion.

The profitability was more complicated. Segment operating income was $3.1 billion, up 206% year over year, and the segment's operating margin of 10.5% was actually higher than the year-ago quarter's. However, it was down sharply from 14.8% in the fiscal fourth quarter.

Part of that step-down is seasonal. The segment's margin also fell sharply between the same two fiscal quarters a year earlier, from about 18% to under 10%, back when AI servers were less than a fifth of the segment. Much of the rest is mix, not memory. AI servers carry much thinner margins than Dell's traditional servers and storage, and chief financial officer David Kennedy said the AI server business is running in line with its target of a mid-single-digit operating margin.

In other words, when a low-margin product line grows from a sliver of the segment into more than half of it, the blended margin falls even if nothing is going wrong.

That's why Tuesday's number is so useful. The mix effect is known, and management has set the bar itself: Kennedy guided to a sequential improvement in the segment's operating margin this quarter. A margin that rises from the first quarter's 10.5% says Dell is passing its higher memory costs through. One that merely holds, or slips, says some of the bill is landing on Dell.

Management is already repricingDell hasn't been shy about naming the pressure. On the company's fiscal first-quarter earnings call in late May, chief operating officer Jeff Clarke described an inflationary environment across memory and other components, and said the company has been adjusting prices frequently in response.

Clarke also named notable commodity constraints, particularly in DRAM and NAND (the two main types of memory chips), as part of a challenging demand and supply environment.

The demand side looks fine. Dell guided second-quarter revenue to $44 billion to $45 billion, up about 50% at the midpoint. The infrastructure segment is expected to grow roughly 75%, including about $15.5 billion of AI server revenue. And adjusted earnings per share guidance of $4.80, plus or minus $0.10, implies growth of more than 100% year over year.

Growth, then, isn't in doubt on Tuesday. What the report settles is how much of it Dell keeps while one of its most important inputs gets more expensive by the quarter.

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What would a good answer look like?I'd watch three things. First is the segment margin itself. A number above 10.5% says pricing power is holding, and one at or below it says it isn't. Second is the companywide gross margin, which fell to 17.8% in the first quarter from 21.1% a year earlier, largely on the AI mix. Another sharp drop there suggests costs are outrunning prices. And third is any updated commentary on memory, because Dell's guidance for the rest of the year assumes the repricing keeps working.

Shares trade near $461 as of this writing, at about 26 times the adjusted earnings management has guided to for this fiscal year -- arguably a full price for a hardware business, and one that assumes the AI growth stays profitable.

I think Dell probably passes the test. Management saw the memory problem early and started repricing months ago. But the margin line is the test, and the answer arrives Tuesday. I see no reason to guess a day early.

Dell Technologies (NYSE:DELL) is positioning agentic artificial intelligence as a shift not only in enterprise infrastructure, but also in how companies organize work, manage costs and secure autonomous systems.

At The Six Five Summit’s AI infrastructure track, John Roese, Dell’s global chief technology officer and chief AI officer, said enterprises are moving beyond earlier generative AI efforts centered on making proprietary data available through chatbots and assistants. Agentic AI, he said, is distinct because it is designed to perform work autonomously rather than simply help employees access information.

“You’re not just unlocking data,” Roese said. “What you are doing is digitizing work. You are literally shifting work from a human being to a machine.” From AI pilots to production systems Roese said Dell has developed agents over the past two years and moved them into production during the last year. The company is using agents in areas including CRM data cleanup, software development and special pricing, he said.

He cautioned, however, that the market is experiencing substantial “agent washing,” with chatbots, digital assistants and autonomous agents frequently grouped together despite having different capabilities. Dell views the distinction as important because autonomous agents require different infrastructure, technology stacks and governance models than earlier generative AI deployments, Roese said.

According to Roese, targeted uses of AI assistants can generate productivity gains of 20% to 40% around a task. Agentic systems, by contrast, can produce larger changes by taking on categories of work and allowing employees to focus on higher-value responsibilities.

Matt Murphy, president and chief executive officer of Marvell Technology, said the infrastructure requirements of production agentic AI differ substantially from AI training workloads. While training emphasizes compute and interconnects, agentic inference increasingly makes memory capacity and bandwidth critical, he said.

Agents retain state through long workflows, repeated calls and interactions with other agents, Murphy said. As a result, larger context windows and workflows involving 20 to 30 turns can exhaust memory capacity and bandwidth before compute capacity is fully used.

Murphy also said CPUs will play a larger role in agentic environments by orchestrating branching logic, tool calls, retrieval, sandboxed code execution and coordination among agents. He added that latency becomes a major challenge at scale because production deployments may involve hundreds or thousands of coordinated agents, creating tail-latency issues that cannot simply be solved by adding more nodes.

Jobs change as work is automated, Roese says Roese argued that autonomous agents should not be viewed as “digital humans” or as direct replacements for entire jobs. Instead, he described jobs as containers comprising multiple kinds of work, including productivity, hygiene, coordination, expert and human-element work.

Agents can take over portions of that work, he said, causing jobs to evolve rather than disappear. For example, he said coding assistants initially reduced lower-level productivity work for engineers, such as code annotations and comments. More advanced, spec-driven agentic development can also automate coding and elements of CI/CD coordination, leaving engineers to focus more heavily on architecture, requirements and customer interaction.

“They do not take your job, they change your job,” Roese said.

Dell analyzed 6,800 jobs as part of its work on the impact of agents, Roese said. He said the company’s conclusion is that every job will change because each includes some work that agents can extract, while employees will increasingly focus on expert and human-facing activities.

Governance, hybrid infrastructure and token economics Roese said organizational change must be deliberate and directed from the top of the company. Dell initially identified 900 AI projects, canceled them and focused on about 13, he said. Those projects, according to Roese, helped the company decouple revenue growth from its cost structure.

As agentic technologies spread into jobs and processes, companies must avoid treating them as isolated task-automation projects, he said. Instead, they need to identify outcome-oriented work, establish governance and target deployments where organizations can manage the associated operational changes.

Roese also said businesses will need a diverse approach to AI infrastructure and token consumption. The economics of an agent that supports executive decision-making can differ materially from those of an agent handling low-value CRM data-cleansing work, he said.

Dell uses several sources of AI intelligence, Roese said, including open models run on-premises, frontier models in Dell data centers, frontier models in controlled virtual private clouds, APIs and models operating on devices. The mix provides choices across economics, performance, compliance and functionality, he said.

“You cannot do that with a monoculture,” Roese said, arguing that hybrid architectures are necessary because enterprise work is diverse.

Security model must evolve for autonomous agents On security, Roese said post-quantum cryptography is a manageable but real concern, particularly for data moving across public interfaces using weak encryption or key-management protocols. He said the industry has developed post-quantum algorithms and has time to deploy them, though organizations should account for “capture now, harvest later” risks.

He said the broader security challenge involves agents themselves. Dell now requires autonomous agents that access its data—whether internal or external—to carry a Dell-issued digital identity. That identity supports fine-grained authorization and gives Dell the ability to revoke an agent’s access if needed, Roese said.

Roese said this identity-based approach effectively provides a kill switch for agents, including those operating on third-party platforms. He also highlighted the security challenges posed by “headless agents,” which operate independently rather than directly on behalf of an individual employee.

Companies cannot assume existing IT and security practices are sufficient for agentic AI, Roese said. They must adapt their infrastructure, governance, identity systems and organizational structures as autonomous systems take on more enterprise work.

About Dell Technologies (NYSE:DELL) Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments.

Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions.

The upcoming report from Dell Technologies (DELL - Free Report) is expected to reveal quarterly earnings of $4.95 per share, indicating an increase of 113.4% compared to the year-ago period. Analysts forecast revenues of $45.25 billion, representing an increase of 52% year over year.

The consensus EPS estimate for the quarter has undergone an upward revision of 5.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Dell Technologies metrics that Wall Street analysts commonly model and monitor.

According to the collective judgment of analysts, 'Net Revenue- Infrastructure Solutions Group' should come in at $28.06 billion. The estimate points to a change of +67% from the year-ago quarter.

Analysts expect 'Net Revenue- Client Solutions Group' to come in at $14.56 billion. The estimate suggests a change of +16.4% year over year.

The average prediction of analysts places 'Net Revenue- Infrastructure Solutions Group- Storage' at $4.26 billion. The estimate points to a change of +10.5% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Net Revenue- Client Solutions Group- Consumer' of $1.93 billion. The estimate suggests a change of +11.9% year over year.

Analysts predict that the 'Net Revenue- Client Solutions Group- Commercial' will reach $13.17 billion. The estimate indicates a year-over-year change of +22.2%.

Analysts forecast 'Net Revenue- Infrastructure Solutions Group- Servers and networking' to reach $25.76 billion. The estimate suggests a change of +99% year over year.

It is projected by analysts that the 'Net Revenue- Corporate and Other' will reach $177.16 million. The estimate indicates a year-over-year change of -62.6%.

Analysts' assessment points toward 'Net Revenue- Products' reaching $36.73 billion. The estimate suggests a change of +53.4% year over year.

Based on the collective assessment of analysts, 'Net Revenue- Services' should arrive at $7.99 billion. The estimate indicates a year-over-year change of +36.8%.

The combined assessment of analysts suggests that 'Operating Income- Client Solutions Group' will likely reach $988.72 million. The estimate is in contrast to the year-ago figure of $803.00 million.

The consensus among analysts is that 'Operating Income- Infrastructure Solutions Group' will reach $3.38 billion. Compared to the present estimate, the company reported $1.47 billion in the same quarter last year.

View all Key Company Metrics for Dell Technologies here>>>

Over the past month, shares of Dell Technologies have returned +25.5% versus the Zacks S&P 500 composite's +3.7% change. Currently, DELL carries a Zacks Rank #1 (Strong Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways
Dell’s next earnings report is set to be released after markets close Tuesday, with the server maker’s stock seen nearing its recent highs after the results.Sales and profits are expected to have surged in Dell’s second quarter amid growing demand for the company’s servers to be used in AI data centers.

Dell Technologies is set to release its latest quarterly earnings after the closing bell Tuesday, with the computer and server maker’s stock seen nearing its recent highs.1

Current options pricing suggests traders expect Dell (DELL) shares could swing up to 10% in either direction by the end of the week following the results. A move of that size from Friday afternoon’s level around $460 could see the stock rally as high as $506, approaching a record high of $514 reached earlier this month. The low end of that range would be $413, giving back some of the stock’s gains this year.

Dell’s stock has soared some 260% in 2026 so far, making it one of the biggest gainers in the S&P 500 this year amid growing demand for the company’s servers in AI data centers. Back in May Dell topped estimates with its quarterly results and lifted its full-year forecast, sending shares up more than 30% in a single session.

Why This Matters to Investors
Dell’s earnings come after a volatile stretch for the AI trade, as worries around the sustainability of spending on hardware have rattled confidence in the sector.

Morgan Stanley analysts wrote ahead of the results that Dell and other hardware makers face elevated expectations, with Wall Street looking for a big bump in Dell’s full-year profit forecasts as prices have surged in recent months.2

Analysts are looking for Dell to report second-quarter revenue of $45.19 billion, up more than 50% year-over-year. Adjusted earnings per share are seen coming in at $4.91, more than double what Dell reported the same time a year ago, according to estimates compiled by Visible Alpha.

Wall Street analysts are largely bullish on Dell, with the six analysts tracked by Visible Alpha split between five “buy” and one neutral rating. Their average price target of $505 would suggest around 10% upside from the stock’s recent level.

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Shares of Super Micro Computer (NASDAQ:SMCI | SMCI Price Prediction) stock are down 7% to $34.53 Monday morning after Taiwanese prosecutors indicted employees of its local unit over an alleged scheme to route AI servers into China. That decline stands apart from broader tech, where losses are limited.

Meanwhile, the iShares U.S. Technology ETF (NYSEARCA:IYW) is down 2% to $243.24, isolating today’s selling to one name. Dell Technologies (NYSE:DELL) stock is down 2% to $431.04, a move that reads more like broad-tape drift than direct AI-server contagion. Hewlett Packard Enterprise (NYSE:HPE) and NVIDIA (NASDAQ:NVDA) shares aren’t showing a distinct session move tied to the headline.

The selloff interrupts what had been a strong 2026 for Super Micro Computer. Super Micro Computer stock was up 27% year to date through Friday’s close, supported by a record AI-server backlog and a Q4 FY2026 non-GAAP earnings beat earlier this month. Today’s move is legal-file risk asserting itself over the fundamental story.

Taiwan Indictment Names Individuals While Sparing the Companies Prosecutors in the Taiwanese port city of Keelung said Monday they had indicted nine people over the illegal export of AI servers to China. Eight were charged with breach of trust and document forgery, including one employee of NVIDIA’s Taiwan unit and two employees of Super Micro Computer’s Taiwan unit. A ninth defendant faces a separate charge tied to alleged siphoning of funds from a distributor.

Critically, the indictments name individuals only. Neither Super Micro Computer nor NVIDIA was charged. The filing stated the defendants were “fully aware” that both companies maintain “rigorous internal control procedures,” and that the defendants “colluded with one another at various levels for enormous profit.”

Neither Super Micro Computer nor NVIDIA immediately responded to requests for comment. That distinction between corporate and individual liability is central to why the market reaction stays contained to Super Micro Computer today.

For investors, the wording matters. The filing explicitly framed the alleged conduct as taking place despite corporate controls at Super Micro Computer and NVIDIA, and that framing is why AI-server hardware and GPU peers are holding up while Super Micro Computer stock is sinking.

How the Alleged Export Scheme Worked The case centers on 130 B300 servers ordered from Super Micro Computer, supported by false end-user documents stating the machines would be installed at a rented server facility in Taiwan. Of those, 74 reached Chinese customers through direct shipments and transhipments via Indonesia, Japan and Hong Kong.

The remaining 56 units were bound for a company in Japan before Taiwan customs officials detected irregularities and halted the export. Washington has required licenses for such exports to China since 2022, tightening the compliance perimeter around NVIDIA’s most advanced GPUs and the servers built around them.

The B300 order size is meaningful in absolute terms but small relative to Super Micro Computer’s overall business. Super Micro Computer generated $11.1 billion in revenue in fiscal Q4 2026, and management flagged more than $60 billion in new orders during the quarter. Direct financial exposure from the seized shipments looks contained, though the compliance and reputational reads are why Super Micro Computer stock is sinking.

Sector Response Stays Contained The framing tells the story. Super Micro Computer is down 7% while broad tech, via the iShares U.S. Technology ETF, is down only 2%. Dell Technologies, the closest AI-server peer, is off 2% as well, a signal that AI-hardware demand isn’t what the market is questioning today.

Hewlett Packard Enterprise and NVIDIA aren’t showing a distinct session decline tied to the Keelung headline (we rounded up seven non-chipmaker suppliers powering that same AI buildout in a free report here: 7 Stocks Powering the AI Boom). That points to investors reading the indictment as employee-level misconduct at a Taiwan subsidiary rather than a corporate-level export-control breakdown at either name.

Super Micro Computer already carries a known compliance overhang. Its board is separately conducting an independent review of certain transactions related to export-control issues, and management told the fiscal Q4 2026 call it “expect[s] to provide an update shortly”. Two overlapping compliance threads make headline risk on this name difficult to price cleanly.

What Investors Can Watch Next The near-term signal for Super Micro Computer will come from any corporate response to the Keelung indictments and from the pending board update on the independent review. Investors can watch for whether management addresses the Taiwan case directly in coming SEC filings or on the next investor call.

Given the tight compliance overhang, investors may want to keep their position sizes modest in Super Micro Computer stock until the board review closes. Cost-averaging into weakness and defined-risk options structures can help manage headline-driven volatility of the kind that hit Super Micro Computer stock this morning. The broader AI-server thesis at Dell Technologies, Hewlett Packard Enterprise and NVIDIA appears to be largely unaffected by today’s news.

Contact [email protected] for any questions or corrections.

Key Takeaways DELL extends Team Liquid ties to boost Alienware testing, content and esports visibility.DELL's consumer revenues rose 9%, supported by continued strength in gaming.HP gains premium PC share, while Corsair expands its gaming peripherals ecosystem. Dell Technologies (DELL - Free Report) and its Alienware gaming brand have extended their long-running partnership with Team Liquid through 2031, strengthening DELL’s presence in e-sports and premium gaming. The agreement extends a 15-year relationship and puts the partnership on track to span 20 years. Over the years, the collaboration has evolved beyond hardware sponsorship to include product development, performance testing, e-sports content, live events and community engagement. This could help DELL reinforce its gaming position against HP (HPQ - Free Report) , which competes in premium gaming PCs and peripherals through brands such as OMEN and HyperX, and Corsair Gaming (CRSR - Free Report) , which competes across gaming systems, components and peripherals.

The partnership is particularly relevant to DELL’s Client Solutions Group (CSG), which includes PCs, branded peripherals and high-end consumer and gaming products. Team Liquid’s professional players provide Alienware with real-world performance feedback that can support the development and refinement of gaming PCs and peripherals. The collaboration also strengthens Alienware’s credibility among competitive gamers and supports its Pro Series peripherals through a data-driven approach to player performance.

The timing is favorable because DELL’s consumer business is gaining momentum. In first-quarter fiscal 2027, consumer revenues increased 9% to $1.59 billion, while total CSG revenues rose 17% to $14.61 billion and CSG operating income surged 79% to $1.17 billion. Management specifically said consumer growth was supported by continued strength in gaming, while stronger demand contributed to higher attach rates, greater scale and improved consumer profitability.

The Team Liquid alliance could support DELL’s broader attach opportunity. Dell Technologies' management highlighted healthy demand for peripherals and services, noting that growth in its PC base can generate additional revenues from complementary products. Alienware’s e-sports exposure can therefore support sales not only of gaming PCs but also of monitors, keyboards, mice, headsets and related services, expanding DELL’s attach opportunity across the gaming ecosystem.

DELL Faces Tough CompetitionHP and Corsair Gaming are strengthening their positions across premium PCs, high-performance computing and gaming peripherals, increasing competitive pressure on DELL. HP reported 13% growth in Personal Systems in the second quarter of fiscal 2026, including strong growth in both Commercial and Consumer. HP’s AI PCs accounted for 44% of its shipment mix in the second quarter of fiscal 2026, strengthening its position in premium and AI-enabled PCs that compete for high-value PC spending.

Corsair represents a more direct gaming-focused challenge. In the second quarter of 2026, Gamer and Creator Peripherals revenues increased 13% year over year to $115.9 million, while segment gross margin reached 44.9%. Corsair is expanding its ecosystem through Fanatec and Trak Racer and continues to compete in gaming components and high-performance systems. Against this backdrop, the Team Liquid partnership gives DELL a long-term platform to strengthen Alienware’s brand visibility, product differentiation and engagement with gaming customers as competition across the premium gaming market intensifies.

DELL’s Share Price Performance, Valuation & EstimatesShares of Dell Technologies have appreciated 246.7% year to date, outperforming the broader Zacks Computer and Technology sector’s 15.7% growth.

DELL Stock’s YTD Price Performance
Image Source: Zacks Investment Research

DELL stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 20.38X compared with the broader sector’s 21.05X. Dell Technologies has a Value Score of D.

DELL’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DELL's earnings is currently pegged at $4.88 per share, down by a cent over the past 30 days, suggesting 110.34% growth.

Dell Technologies stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The best AI infrastructure trade of 2026 could be a server maker. Dell Technologies (NYSE:DELL | DELL Price Prediction) trades at $490.81, up 293.52% year to date on record AI server orders. Our 24/7 Wall St. price target is $560.77, implying 14.25% upside over 12 months. We rate Dell a buy with 90% confidence.

  Metric Value Current Price $490.81 24/7 Wall St. Price Target $560.77 Upside 14.25% Recommendation BUY Confidence Level 90% A $24 Billion Quarter Reset the Narrative Dell’s Q1 FY27 earnings on May 28, 2026 reframed the AI trade. Revenue hit $43.84 billion, up 87.54% YoY, with non-GAAP EPS of $4.86 beating consensus by nearly 64%.

AI-optimized server revenue reached $16.13 billion (+757% YoY), and management booked $24.4 billion in AI orders in a single quarter, exiting with a $51.3 billion AI backlog. The stock has climbed 19.12% in the past month and sits 2% from its 52-week high of $514.

The Case for $585 and Higher Our bull scenario points to $585.31, or roughly 19% upside. Dell raised FY27 revenue to $165 to $169 billion and non-GAAP EPS to $17.90 at midpoint, up 74% YoY. CEO Jeff Clark said “demand continues to exceed supply” and framed customer conversations as “multi-year in nature. Think three, four, five years.”

ISG operating margin expanded to 10.5%, with agentic AI layering in as a fresh tailwind for traditional servers. 19 buy or strong buy ratings against zero sells show sell-side alignment with the bull view.

What Could Go Wrong Our bear case lands at $422.16, a 14% drawdown. Q1 gross margin compressed to 17.8% from 21.1% YoY as low-margin AI servers dominate mix. Negative stockholders’ equity of -$1.4 billion and hyperscaler concentration pose real risks.

Operating income still grew 213.82% YoY, offsetting the mix shift. A beta of 1.4 means any AI capex pause would hit Dell harder than the market.

How Dell Stacks Up Against HPE and Super Micro Hewlett Packard Enterprise (NYSE:HPE) is the closest enterprise server analog. HPE raised FY26 non-GAAP EPS guidance to $3.35 to $3.45 after posting Q2 revenue of $10.68 billion, up 40% YoY. HPE’s FY27 framework calls for 8% to 12% revenue growth, well below Dell’s 47% FY27 guide. Dell is scaling faster and returning more capital, supporting a premium.

Super Micro Computer (NASDAQ:SMCI) is the AI server pure play. SMCI guided FY27 revenue to $65 to $72 billion and trades at a P/E near 12.

The cheap multiple reflects margin instability (Q1 FY26 GAAP gross margin was 9.3%) and an ongoing board review tied to export-control matters. Dell’s diversified ISG and CSG mix earns its higher multiple. The peer set supports our $560.77 target as a reasonable read.

Dell Price Prediction 2026-2030 The 24/7 Wall St. price target of $560.77 is our high-conviction call, backed by 90% model confidence and a forward P/E of 27 that looks fair given 74% EPS growth guidance.

The bull thesis rests on hyperscaler AI capex holding through 2027 (Dell is one server maker inside that buildout, and we mapped seven other non-chip AI infrastructure names in a free report). The bear thesis kicks in if memory and GPU supply loosen in a way that cracks pricing power.

Extending the 24/7 Wall St. price target model forward, here is where Dell could trade assuming ISG growth normalizes and traditional server refresh cycles support the base.

Year 24/7 Wall St. Price Target 2026 $560 2027 $625 2028 $685 2029 $730 2030 $763 These projections assume Dell converts AI backlog to revenue and defends ISG operating margins. Significant upside or downside could result from hyperscaler AI capex trajectory or a sustained shift in GPU allocation away from Dell’s platforms.

Contact [email protected] for any questions or corrections.

Key Takeaways Dell Technologies' AI server revenues hit $16.1B, up 757% year over year in fiscal Q1 2027.Dell raised fiscal 2027 AI server revenue guidance to $60B as backlog reached $51.3B.DELL expects traditional server revenues to grow just over 60% in fiscal 2027 amid a broad refresh cycle. Dell Technologies (DELL - Free Report) shares are trading at a premium, as suggested by a Value Score of C. In terms of the forward 12-month price/earnings (P/E), DELL is trading at 21.92X, higher than the broader Zacks Computer and Technology sector’s 21.59X. Dell is trading at a higher multiple compared with peers, including Super Micro Computer’s (SMCI - Free Report) 9.22X, Hewlett Packard Enterprise’s (HPE - Free Report) 14.07X and HP’s (HPQ - Free Report) 10.14X.

DELL Shares Are Trading at a Premium
Image Source: Zacks Investment Research

Technically, Dell Technologies is trading above the 50 and 200-day moving averages (SMAs), indicating a bullish trend.

DELL Stock Trades Above 50 & 200-Day SMAs
Image Source: Zacks Investment Research

Is DELL worth buying at current prices? Let’s dig deep to find out.

DELL Shares Ride on AI ProspectsYear to date (YTD), DELL shares have outperformed the broader Zacks Computer and Technology sector, as well as Super Micro Computer, Hewlett Packard Enterprise and HP. Dell returned a whopping 263.7% YTD while the broader sector, Super Micro Computer, Hewlett Packard Enterprise and HP have returned 17.7%, 7.4%, 127.6% and 33.7%, respectively.

DELL Stock’s Price Performance
Image Source: Zacks Investment Research

The company is benefiting from a combination of exceptional AI infrastructure demand, a broader server refresh, exponential storage and data growth, and improving scale economics. Dell’s AI server business is scaling rapidly with AI-optimized server revenue reaching $16.1 billion, up 757% year over year in the first quarter of fiscal 2027. Orders were $24.4 billion, and ending backlog was $51.3 billion. Importantly, the opportunity pipeline continued to grow sequentially and remained multiples of backlog, even after the strong order conversion. Dell consequently raised fiscal 2027 AI server revenue guidance to $60 billion, nearly 2.4 times last year’s reported level.

Dell’s expanding customer base, which now exceeds 5,000 across hyperscalers, neocloud providers, sovereign AI projects and enterprises, provides strong visibility into growth. The company’s management expects fiscal 2027 revenues between $165 billion and $169 billion (up 47% year over year at the midpoint), and non-GAAP earnings of $17.90 per share (plus or minus 25 cents).

Dell believes agentic AI is creating incremental demand for both accelerated and general-purpose compute. Agentic workloads involve sequential tool calls that are better suited to CPUs, meaning AI adoption can stimulate traditional server demand alongside GPU infrastructure. The on-premise AI opportunity is another important tailwind. Dell noted that roughly 83% of enterprise data remains on-premise, while performance, cost and security considerations encourage enterprises to deploy AI closer to their data. That creates opportunities not only for servers but also for Dell’s AI Data Platform and broader data-management portfolio.

DELL’s Expanding Portfolio Aids ProspectsDell is increasingly selling an integrated architecture rather than individual hardware components. The company is offering accelerated and general-purpose compute, networking, storage, data management, software, deployment and services. Dell Management argues that enterprises prefer validated systems rather than having to integrate complex AI infrastructure themselves.

Dell also points to engineering, large-scale deployment capabilities, services/support, financing and its supply chain as competitive advantages. The company has highlighted its ability to bring successive NVIDIA platforms to market quickly and deploy racks into production at customer sites in under 6.5 hours.

A substantial traditional server refresh cycle bodes well for Dell’s prospects. Large enterprises are refreshing compute infrastructure, expanding capacity and seeking greater density and efficiency. The majority of Dell’s installed server base remains on 14th-generation or older systems, suggesting the refresh cycle still has runway. AI inference is also generating incremental demand for general-purpose compute. Accordingly, Dell expects traditional server revenue to grow just more than 60% in fiscal 2027, making growth considerably broader than AI servers alone.

DELL’s Earnings Estimate Revision Shows Rising TrendThe Zacks Consensus Estimate for second-quarter fiscal 2027 earnings is pegged at $4.89 per share, up by a penny over the past 30 days and indicating 110.78% growth from the figure reported in the year-ago quarter. 
 

The consensus mark for fiscal 2027 earnings is pegged at $18.80 per share, up 3 cents over the past 30 days, suggesting 8.52% growth from fiscal 2026’s reported figure.

ConclusionDell Technologies is well positioned to benefit from the rapid expansion of AI infrastructure spending, growing enterprise adoption of agentic AI and ongoing server refresh activity. The company’s record AI backlog, expanding customer base and broad portfolio spanning compute, storage, networking and data management provide solid revenue visibility. Moreover, continued strength in traditional servers and storage should help diversify growth beyond AI-optimized systems.

DELL currently has a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A strong stock as of late has been Dell Technologies (DELL - Free Report) . Shares have been marching higher, with the stock up 12% over the past month. The stock hit a new 52-week high of $476.9 in the previous session. Dell Technologies has gained 271.2% since the start of the year compared to the 18.6% move for the Zacks Computer and Technology sector and the 19.2% return for the Zacks Computer - Micro Computers industry.

What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 28, 2026, Dell Technologies reported EPS of $4.86 versus consensus estimate of $3.04 while it beat the consensus revenue estimate by 23.62%.

For the current fiscal year, Dell Technologies is expected to post earnings of $18.8 per share on $174.48 in revenues. This represents a 82.52% change in EPS on a 67.63% change in revenues. For the next fiscal year, the company is expected to earn $22.76 per share on $191.13 in revenues. This represents a year-over-year change of 21.07% and 9.54%, respectively.

Valuation MetricsWhile Dell Technologies has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Dell Technologies has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 24.9X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.9X. On a trailing cash flow basis, the stock currently trades at 32.6X versus its peer group's average of 22.2X. Additionally, the stock has a PEG ratio of 0.94. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Dell Technologies currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Dell Technologies fits the bill. Thus, it seems as though Dell Technologies shares could have a bit more room to run in the near term.

How Does DELL Stack Up to the Competition?Shares of DELL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Lenovo Group Ltd. (LNVGY - Free Report) . LNVGY has a Zacks Rank of #1 (Strong Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of B.

Earnings were strong last quarter. Lenovo Group Ltd. beat our consensus estimate by 105.00%, and for the current fiscal year, LNVGY is expected to post earnings of $3.92 per share on revenue of $97.87 billion.

Shares of Lenovo Group Ltd. have gained 24.2% over the past month, and currently trade at a forward P/E of 16.98X and a P/CF of 11.89X.

The Computer - Micro Computers industry is in the top 13% of all the industries we have in our universe, so it looks like there are some nice tailwinds for DELL and LNVGY, even beyond their own solid fundamental situation.

Key Takeaways Dell benefits from enterprise PC refreshes, with one-third of installed devices at least four years old. AI-enabled commercial PCs and higher peripheral attach rates are supporting CSG growth and profitability. Memory shortages through 2027 may raise costs and push CSG operating margins toward roughly 6%. Dell Technologies’ (DELL - Free Report) Client Solutions Group (“CSG”) is benefiting from sustained commercial demand. Large enterprise customers continue to refresh aging PC fleets across all regions, while roughly one-third of the installed base still consists of devices that are four years or older, leaving meaningful room for additional upgrades. Commercial customers continue to represent the primary growth engine for CSG. Strong enterprise demand, higher attach rates for peripherals and improved scale helped lift CSG operating income 79% year over year, while profitability benefited from a richer commercial mix and improving consumer margins.

DELL highlighted continued innovation across its PC portfolio, including Dell Pro Max AI desktops supporting NVIDIA GB10 and GB300 platforms. Dell is positioning AI-enabled commercial PCs as part of its end-to-end AI strategy, enabling enterprises to run AI workloads locally while keeping sensitive data on-premises. These capabilities are expected to support premium PC demand over the coming quarters.

Although enterprise remains the key driver, Dell reported a third consecutive quarter of demand growth in consumer revenues, aided by ongoing strength in gaming systems. This provides incremental support to overall CSG revenues while diversifying growth beyond commercial PCs.

However, CSG is expected to suffer from a global memory shortage that is expected to continue through the end of 2027. This is likely to force PC vendors like Dell, Lenovo (LNVGY - Free Report) and HP (HPQ - Free Report) to contend with rising DRAM and NAND prices, limited system configurations and tighter product availability. IDC now forecasts global PC shipments to decline 11.3% in 2026, with conditions expected to worsen during the second half as memory shortages intensify. DELL expects CSG operating margins to moderate to roughly 6% in the upcoming quarter as the company balances customer demand, competitive pricing, market-share gains and profitability.

DELL Faces Tough Competition in PCDell is facing significant competition from the likes of HP and Lenovo in the PC space.

Lenovo is intensifying competition with Dell by strengthening its leadership in premium PCs, commercial devices and AI-enabled systems while consistently outgrowing the broader PC market. In the fourth quarter of fiscal 2026, Lenovo reported 26% year-over-year growth in PC revenues and achieved a record 24.4% global PC market share. Lenovo is also differentiating itself through AI PCs, premiumization and supply-chain execution. The company’s AI strategy includes the rollout of the QIRA personal AI assistant across PCs, tablets and smartphones and new AI-focused commercial desktops, such as the ThinkCentre Neo 50q.

HP remains a key challenger to Dell by leveraging strong momentum in its Personal Systems business, particularly in commercial PCs and premium AI-enabled devices. During the second quarter of fiscal 2026, Personal Systems revenues increased 13% year over year, with commercial revenues rising 14% and consumer revenues up 10%. HP highlighted continued share gains in premium PC categories, strong growth in AI PCs, Advanced Compute Solutions and Workforce Solutions, as well as higher-value unit placements that supported profitability. These initiatives directly compete with Dell's strategy of expanding its premium commercial PC portfolio. HP is further challenging Dell through its AI-at-the-edge strategy and expanding software ecosystem.

DELL’s Share Price Performance, Valuation & EstimatesDell’s shares have appreciated 221.5% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 6.9%.

DELL Stock Outperforms Sector
Image Source: Zacks Investment Research

The stock is trading at a premium, with a forward 12-month price/earnings of 19.49X compared with HP’s 9.13X and Lenovo’s 14.98X. Dell has a Value Score of C.

Valuation - DELL vs. HPQ
Image Source: Zacks Investment Research

Valuation - DELL vs. LNVGY
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 earnings is currently pegged at $18.80 per share, up 3 cents over the past 30 days, suggesting 82.52% growth from fiscal 2026’s reported figure.
 

Dell currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Posted by Defense World Staff on Jul 27th, 2026

Compound Planning Inc. reduced its stake in shares of Dell Technologies Inc. (NYSE:DELL – Free Report) by 31.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,982 shares of the technology company’s stock after selling 2,699 shares during the quarter. Compound Planning Inc.’s holdings in Dell Technologies were worth $982,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Commonwealth Retirement Investments LLC bought a new stake in shares of Dell Technologies in the 4th quarter worth about $25,000. Rossby Financial LCC lifted its holdings in Dell Technologies by 968.4% during the 4th quarter. Rossby Financial LCC now owns 203 shares of the technology company’s stock valued at $26,000 after purchasing an additional 184 shares during the last quarter. Portus Wealth Advisors LLC acquired a new position in Dell Technologies in the first quarter valued at about $35,000. Kemnay Advisory Services Inc. acquired a new position in Dell Technologies in the fourth quarter valued at about $29,000. Finally, Navalign LLC bought a new stake in Dell Technologies during the fourth quarter worth about $29,000. Institutional investors and hedge funds own 76.37% of the company’s stock.

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

Positive Sentiment: Dell was selected by Texas A&M Engineering Experiment Station to build the IGNITE secure AI and high-performance computing platform, a contract that adds to Dell’s AI/HPC momentum and highlights its role in national research infrastructure. Texas A&M Engineering Experiment Station Selects Dell Technologies to Build a Secure AI Platform for National Research Positive Sentiment: Investor optimism around AI servers is spreading across the sector, with reports pointing to Dell’s exposure to Nvidia-powered AI server demand as a key reason the stock has been moving higher. Dell Technologies (DELL) Climbs 9.3% on Booming Demand for Nvidia-Powered AI Servers Positive Sentiment: Analyst commentary is also leaning bullish, with several forecasts suggesting Dell still has room to run as AI server growth remains a major theme for the stock. Dell To Rally More Than 17%? Here Are 10 Top Analyst Forecasts For Friday Neutral Sentiment: Some market coverage notes that Dell’s AI story is improving, but also flags new risks, suggesting investors are still weighing upside from AI demand against margin and execution concerns. Dell’s AI Story Gains Traction but New Risks Are Emerging Negative Sentiment: One concern for Dell remains margin pressure tied to the AI server buildout, which could limit how much of the AI demand boom translates into profits. Prediction: Dell Technologies Stock Could Be 30% Higher by This Time Next Year Dell Technologies Trading Down 0.2% Shares of DELL stock opened at $436.43 on Monday. Dell Technologies Inc. has a 1 year low of $110.22 and a 1 year high of $469.47. The firm’s 50 day moving average is $390.33 and its 200-day moving average is $239.74. The firm has a market capitalization of $282.85 billion, a price-to-earnings ratio of 34.66, a PEG ratio of 0.93 and a beta of 1.31.

Dell Technologies (NYSE:DELL – Get Free Report) last issued its quarterly earnings results on Thursday, May 28th. The technology company reported $4.86 earnings per share for the quarter, beating analysts’ consensus estimates of $2.96 by $1.90. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The business had revenue of $43.84 billion during the quarter, compared to analyst estimates of $35.74 billion. During the same quarter last year, the business posted $1.55 earnings per share. Dell Technologies’s revenue for the quarter was up 87.5% compared to the same quarter last year. Dell Technologies has set its FY 2027 guidance at 17.900-17.900 EPS and its Q2 2027 guidance at 4.800-4.800 EPS. On average, equities research analysts forecast that Dell Technologies Inc. will post 17.77 earnings per share for the current fiscal year.

Dell Technologies Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Tuesday, July 21st will be paid a $0.63 dividend. This represents a $2.52 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Tuesday, July 21st. Dell Technologies’s dividend payout ratio (DPR) is 20.02%.

Insider Transactions at Dell Technologies In other news, Director Spv-2 L.P. Sl sold 59,492 shares of the firm’s stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $453.54, for a total value of $26,982,001.68. Following the transaction, the director owned 89,222 shares of the company’s stock, valued at approximately $40,465,745.88. This trade represents a 40.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Silver Lake Partners V. De (Aiv sold 34,869 shares of Dell Technologies stock in a transaction that occurred on Thursday, July 9th. The stock was sold at an average price of $453.54, for a total transaction of $15,814,486.26. Following the sale, the director owned 43,961 shares of the company’s stock, valued at approximately $19,938,071.94. This represents a 44.23% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 3,434,758 shares of company stock worth $1,448,870,683. Insiders own 41.50% of the company’s stock.

Wall Street Analysts Forecast Growth A number of research firms have recently issued reports on DELL. Citic Securities lifted their target price on shares of Dell Technologies from $160.00 to $505.00 and gave the company a “buy” rating in a research note on Monday, June 1st. Loop Capital increased their price target on Dell Technologies from $150.00 to $550.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Piper Sandler raised their price target on Dell Technologies from $167.00 to $497.00 and gave the company an “overweight” rating in a report on Friday, May 29th. JPMorgan Chase & Co. lifted their price objective on Dell Technologies from $280.00 to $500.00 and gave the company an “overweight” rating in a research report on Friday, May 29th. Finally, Susquehanna set a $289.00 price objective on Dell Technologies and gave the stock a “neutral” rating in a research note on Friday, May 29th. One analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Dell Technologies has a consensus rating of “Moderate Buy” and a consensus target price of $494.67.

Check Out Our Latest Analysis on DELL

Dell Technologies Company Profile (Free Report)

Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments.

Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions.

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Key Takeaways Dell's AI server sales are growing 700% YoY.EPS is projected to double this quarter.Dell shares are forming a classic high-tight-flag pattern. Dell Technologies Company OverviewZacks Rank #1 (Strong Buy) stock Dell Technologies ((DELL - Free Report) ) is a leading provider of servers, storage, and PCs. The Round Rock, Texas-based company is a leader in the traditional PC space. However, over the past few years, Dell has transformed into a primary enterprise hardware vendor providing the “picks and shovels” needed for the massive global AI infrastructure buildout. Dell operates in more than 150 countries and reported over $100 billion in annual revenue last year.

Dell: An AI Infrastructure JuggernautDell’s fastest-growing business is its AI-optimized server segment, which is experiencing mind-boggling year-over-year growth of more than 700%! Dell’s AI servers are ultra-high-performance computers designed to process immense quantities of information at once. Unlike standard computers that can only handle one or two tasks simultaneously, these specialized servers can handle millions of complex math problems simultaneously. These AI servers perform the two most important AI tasks: training (feeding the AI massive quantities of data) and inference (hosting the AI so customers can use it).

Dell separates itself from competitors through its “plug-and-play” service. Instead of selling individual products to customers, Dell combines the chips, software, and power systems so clients receive a complete AI rack ready to use immediately. Dell’s expanding ecosystem supports a fuller stack for customers that want to run AI on infrastructure they control. Management recently highlighted partners including NVIDIA ((NVDA - Free Report) ), Google ((GOOGL - Free Report) ) Cloud, OpenAI, Palantir ((PLTR - Free Report) ), ServiceNow ((NOW - Free Report) ), and others.

The AI Buildout is Not Slowing Tuesday, Super Micro Computer ((SMCI - Free Report) ), a direct Dell competitor, trounced earnings and guided for gross margins to nearly double from ~8.8% to 15-17%. The news suggests that Dell, which has much higher margins than SMCI, will be able to increase those margins further in the coming quarters. Separately, Dell customer OpenAI raised its projected compute spending through 2030 to ~$750B from $600B earlier this year.

Dell’s Scorching-Hot GrowthDell is growing earnings at a rapid clip. Zacks Consensus Estimates suggest that the company’s EPS will more than double in the current quarter and will grow ~66% in 2026.

Image Source: Zacks Investment Research

Meanwhile, Dell has proven an ability to deliver positive EPS surprises in recent quarters. For instance, last quarter, Dell beat consensus estimates by a juicy 59.87%.

Image Source: Zacks Investment Research

Dell Sets Up High Tight FlagDELL shares are set up in a classic high tight flag pattern. An HTF occurs when a stock doubles in 8 weeks or less then corrects no more than 20%.

Image Source: TradingView

Bottom Line

Dell has successfully evolved from a traditional PC manufacturer to a hardware leader in the global AI buildout. With massive earnings growth, expanding partnerships, and a unique “plug-and-play” service, Dell’s bullish trajectory is likely to continue.

Posted by Defense World Staff on Jul 22nd, 2026

Andra AP fonden lifted its stake in shares of Dell Technologies Inc. (NYSE:DELL – Free Report) by 90.8% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 74,268 shares of the technology company’s stock after buying an additional 35,335 shares during the period. Andra AP fonden’s holdings in Dell Technologies were worth $12,190,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of DELL. Cassaday & Co Wealth Management LLC acquired a new position in Dell Technologies during the 1st quarter worth about $169,000. MWA Asset Management raised its holdings in Dell Technologies by 1.8% during the 1st quarter. MWA Asset Management now owns 23,533 shares of the technology company’s stock worth $3,862,000 after purchasing an additional 409 shares during the last quarter. Convergence Investment Partners LLC raised its holdings in Dell Technologies by 237.5% during the 1st quarter. Convergence Investment Partners LLC now owns 44,982 shares of the technology company’s stock worth $7,383,000 after purchasing an additional 31,653 shares during the last quarter. Kapitalo Investimentos Ltda acquired a new position in shares of Dell Technologies in the 1st quarter worth approximately $1,018,000. Finally, Alta Advisers Ltd bought a new stake in shares of Dell Technologies in the 1st quarter valued at $202,000. Institutional investors and hedge funds own 76.37% of the company’s stock.

Analyst Upgrades and Downgrades Several equities research analysts recently commented on the company. Argus raised their target price on Dell Technologies from $200.00 to $460.00 and gave the stock a “buy” rating in a research note on Friday, May 29th. Guggenheim upgraded Dell Technologies to a “buy” rating in a report on Monday, June 1st. Loop Capital raised their price objective on shares of Dell Technologies from $150.00 to $550.00 and gave the stock a “buy” rating in a research report on Friday, May 29th. Wall Street Zen upgraded shares of Dell Technologies from a “buy” rating to a “strong-buy” rating in a research note on Saturday, May 30th. Finally, UBS Group set a $700.00 target price on shares of Dell Technologies in a research note on Friday, May 29th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $492.76.

Check Out Our Latest Analysis on Dell Technologies

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

Positive Sentiment: Shares moved higher after Super Micro Computer’s preliminary results showed booming margins and strong orders, which traders viewed as a positive read-through for Dell’s AI server demand. Super Micro Soars Late On Booming Margins, Orders; Dell, HP Enterprise Also Rally Positive Sentiment: Market commentary from Jim Cramer flagged Dell as a likely next winner after SMCI’s results, reinforcing the bullish AI-demand narrative around Dell Technologies. QUICK SPARK: Jim Cramer Flags Dell as the Next Winner After SMCI Preliminary Results Positive Sentiment: Analysts and market reports noted Dell was rallying alongside other AI hardware names as the Nasdaq rebounded, suggesting broad sector strength is helping support the stock. Super Micro Jumps 6%, Dell Climbs 7%, HPE Rises 5% as AI Hardware Rebounds With the Nasdaq Neutral Sentiment: Several articles highlighted Dell as a trending AI-PC and enterprise hardware stock, but these pieces were more commentary than fresh company-specific catalysts. Dell Technologies Inc. (DELL) Is a Trending Stock: Facts to Know Before Betting on It Negative Sentiment: Dell also saw a prior-day pullback, with reports saying the stock underperformed the broader market, which may have set up the stronger rebound seen today. Here’s Why Dell Technologies (DELL) Fell More Than Broader Market Insider Activity In other news, Director Silver Lake Partners Iv, L.P. sold 189,805 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $457.99, for a total transaction of $86,928,791.95. Following the completion of the transaction, the director directly owned 24,287 shares of the company’s stock, valued at $11,123,203.13. This represents a 88.66% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Spv-2 L.P. Sl sold 175,901 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $457.99, for a total transaction of $80,560,898.99. Following the sale, the director owned 36,659 shares of the company’s stock, valued at approximately $16,789,455.41. The trade was a 82.75% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 3,434,758 shares of company stock valued at $1,448,870,683. 41.50% of the stock is owned by company insiders.

Dell Technologies Trading Up 5.7% Shares of NYSE:DELL opened at $403.55 on Wednesday. The stock has a market cap of $261.54 billion, a PE ratio of 32.05, a price-to-earnings-growth ratio of 0.82 and a beta of 1.31. The stock’s fifty day simple moving average is $378.67 and its two-hundred day simple moving average is $233.13. Dell Technologies Inc. has a 1-year low of $110.22 and a 1-year high of $469.47.

Dell Technologies (NYSE:DELL – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The technology company reported $4.86 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.96 by $1.90. Dell Technologies had a net margin of 6.28% and a negative return on equity of 366.90%. The business had revenue of $43.84 billion during the quarter, compared to the consensus estimate of $35.74 billion. During the same period in the prior year, the firm posted $1.55 EPS. The firm’s quarterly revenue was up 87.5% compared to the same quarter last year. Dell Technologies has set its FY 2027 guidance at 17.900-17.900 EPS and its Q2 2027 guidance at 4.800-4.800 EPS. On average, sell-side analysts forecast that Dell Technologies Inc. will post 17.77 earnings per share for the current fiscal year.

Dell Technologies Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Investors of record on Tuesday, July 21st will be given a dividend of $0.63 per share. The ex-dividend date is Tuesday, July 21st. This represents a $2.52 annualized dividend and a yield of 0.6%. Dell Technologies’s dividend payout ratio is presently 20.02%.

About Dell Technologies (Free Report)

Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments.

Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions.

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A broad selloff hit AI-linked hardware and chip stocks on Wednesday as investors locked in gains from a months-long rally and questioned how long red-hot demand for AI infrastructure can support current valuations.

Dell Technologies Inc (NASDAQ:DELL) fell as much as 12%, touching a session low of $397.69, after a report that Meta Platforms is developing plans to lease out surplus AI training and inference capacity to enterprise customers. The news stoked concern that hyperscale cloud providers may have over-built data center infrastructure, a development that could slow future server orders for system integrators such as Dell.

Rising memory costs added to the pressure on Dell's margins, given that AI-optimized servers already carry lower gross margins than the company's traditional hardware lines. GF Securities recently downgraded the stock to "Hold" from "Buy," citing a stretched valuation after shares had rallied roughly 200% and traded near 34 times forward earnings. Extensive insider selling, totaling about $1.56 billion over three months with no offsetting purchases, has also weighed on sentiment.

Micron Technology Inc (NASDAQ:MU) dropped about 9%, extending losses as investors weighed reports that Washington is considering tighter unilateral restrictions on exports of high-bandwidth memory products, a step that would carry direct implications for the chipmaker's international revenue. Competition from Chinese memory manufacturers has also been cited as a growing longer-term threat to Micron's pricing power.

SanDisk (NASDAQ:SNDK) shares slid sharply after a research firm cut its near-term outlook for the NAND flash market, pointing to average selling prices falling faster than previously expected. That shift reinforced concern that the memory industry's supply-demand balance is tipping toward a surplus as capacity expansions across the sector outpace demand from enterprise and consumer electronics customers.

Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD) shares also fell, caught up in the broader retreat across semiconductor and memory names. The stock has been especially sensitive to swings in sentiment after more than doubling year-to-date on optimism around its EPYC server processors and Instinct AI accelerators, leaving it vulnerable to profit-taking once the mood in AI hardware shifted.

The declines mark the latest bout of volatility in a sector that has posted extraordinary gains through 2026 on the back of surging AI infrastructure spending. Traders and analysts described Wednesday's moves largely as a valuation reset rather than a sign of a broader breakdown in AI demand, though the Meta capacity report and renewed scrutiny of hardware margins have added a fresh layer of uncertainty heading into the next round of quarterly earnings.

In the latest close session, Dell Technologies (DELL - Free Report) was down 1.81% at $427.11. The stock's change was less than the S&P 500's daily loss of 0.79%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq decreased by 1.55%.

Shares of the computer and technology services provider witnessed a gain of 9.96% over the previous month, beating the performance of the Computer and Technology sector with its gain of 3.44%, and the S&P 500's gain of 4.28%.

The upcoming earnings release of Dell Technologies will be of great interest to investors. The company's earnings per share (EPS) are projected to be $4.88, reflecting a 110.34% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $46.48 billion, showing a 56.1% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $18.77 per share and a revenue of $170.55 billion, indicating changes of +82.23% and +50.22%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Dell Technologies. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.75% increase. Dell Technologies presently features a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Dell Technologies is currently exchanging hands at a Forward P/E ratio of 23.17. This denotes no noticeable deviation relative to the industry average Forward P/E of 23.17.

One should further note that DELL currently holds a PEG ratio of 0.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Micro Computers industry had an average PEG ratio of 2.74 as trading concluded yesterday.

The Computer - Micro Computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Key Takeaways Dell shares have jumped 213.2% YTD as AI server revenues surged 757% y/y to $16.1 billion in Q1FY27.DELL expects $60 billion in FY27 AI server revenues, nearly 2.4 times last year.Dell faces memory constraints, lower AI server margins and competition in PCs and AI infrastructure. Dell Technologies (DELL - Free Report) shares have jumped a whopping 213.2% year to date (YTD), driven by strong AI infrastructure growth. In the first quarter of fiscal 2027, AI server orders reached $24.4 billion, AI server revenues surged 757% year over year to $16.1 billion and AI server backlog expanded to $51.3 billion. The company expects $60 billion in AI server revenues for fiscal 2027, nearly 2.4 times last year’s reported level.

Dell’s expanding customer base, which now exceeds 5,000 across hyperscalers, neocloud providers, sovereign AI projects and enterprises, provides strong visibility into growth. The company’s management expects fiscal 2027 revenues between $165 billion and $169 billion (up 47% year over year at the mid-point), and non-GAAP earnings of $17.90 per share (plus or minus 25 cents).

Do DELL shares have further room for appreciation? Let us find out.

DELL Shares Ride on AI ProspectsYTD, DELL shares have outperformed the broader Zacks Computer and Technology sector, as well as peers like Apple (AAPL - Free Report) , Super Micro Computer (SMCI - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) . Shares of Hewlett Packard Enterprise and Apple have returned 71.6% and 13.5%, respectively, while Super Micro Computer has dropped 7% YTD.

DELL Stock’s Price Performance
Image Source: Zacks Investment Research

Dell has become a key supplier of AI-optimized servers and data center solutions, benefiting from surging enterprise demand for AI training and inference workloads. Dell’s partnerships with leading chipmakers such as NVIDIA allow it to deliver high-performance AI systems that enterprises increasingly need to modernize operations and deploy generative AI applications. The company’s integrated rack-scale systems and data center solutions allow customers to deploy AI clusters efficiently, while managing the total cost of ownership. These capabilities are helping Dell capture opportunities as organizations scale AI workloads across industries.

Growth is not limited to AI. Dell’s traditional server business grew 92% year over year in the first quarter of fiscal 2027, supported by enterprise data center modernization and replacement of aging installed infrastructure. Management highlighted broad-based demand across every geography, while storage revenues increased 8%, marking the fifth consecutive quarter of above-market Dell-IP storage growth. These trends lifted Infrastructure Solutions Group revenues 181% year over year and operating income 206%, demonstrating that both AI and traditional infrastructure are contributing to earnings growth.

The company continues to expand its AI Factory ecosystem with partners, including NVIDIA, Google Cloud, OpenAI, Palantir and ServiceNow, while new offerings such as Dell PowerRack, 18th-generation PowerEdge servers and the AI Data Platform position DELL as a full-stack AI infrastructure provider. Dell emphasized that customers increasingly prefer integrated, production-ready AI infrastructure rather than standalone hardware, supporting continued market share gains.

DELL’s Prospects Suffer From Competition, Supply ConstraintsAlthough expanding AI infrastructure footprint benefits DELL’s prospects, management repeatedly cited memory (DRAM and NAND) constraints as the primary supply bottleneck and acknowledged that demand continues to exceed supply. Large AI systems are complex to manufacture and deploy, making supply-chain execution crucial for sustaining current growth rates.

Dell’s gross margin rate declined to 18.1% because of the mix shift toward lower margin AI servers. Management stated that AI server profitability remains in the mid-single-digit operating margin range, which is below storage margins. As AI becomes a larger percentage of revenues, margin expansion may be more difficult than revenue growth suggests.

DELL continues to face stiff competition from Apple, HP and Lenovo in the PC market, as well as Hewlett Packard Enterprise and Super Micro Computer in the AI infrastructure space.

The PC segment climbed up 4% in the first quarter of calendar 2026, according to Gartner, while per IDC the growth was far more modest at 2.5%. In terms of shipments, Apple outperformed Dell and Lenovo’s growth of 9.5% and 7.6%, respectively, per the latest Gartner data. HP’s shipment declined 4.9%. According to IDC’s list, ASUS shipment growth was 17.1%, trailed by Apple’s 9.1%, Lenovo’s 8.6% and Dell Technologies’ 7.7% growth. HP’s shipment declined 4.9%.

DELL Shares Are Trading at a PremiumDell Technologies shares are trading at a premium, as suggested by a Value Score of C.

In terms of the forward 12-month price/sales (P/S), DELL is trading at 1.45X, higher than Super Micro Computer’s 0.32X and Hewlett Packard Enterprise’s 1.12X.

Valuation – DELL vs. SMCI
Image Source: Zacks Investment Research

Valuation – DELL vs. HPE
Image Source: Zacks Investment Research

Technically, Dell Technologies is trading above the 50 and 200-day moving averages (SMAs), indicating a bullish trend.

DELL Stock Trades Above 50 & 200-Day SMAs
Image Source: Zacks Investment Research

ConclusionDell’s prospects ride on strong AI infrastructure demand and an impressive liquidity position. An expanding clientele across neoclouds, sovereigns and enterprise customers bodes well for the company’s top-line growth. These drivers justify a premium valuation.

DELL currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.

There's no denying that a slew of artificial intelligence stocks are suddenly on the defensive. Shares of cloud computing powerhouse Amazon are down 14% just since the end of last month. Microsoft's budding recovery effort was recently upended as well. Worries of a bigger reckoning are firming up, and understandably so.

There's one name in the artificial intelligence business, however, that may perform very well this year, even if most other AI stocks hit a wall. That's Dell Technologies (DELL 3.58%). Yes, that Dell.

Dell's simple turnkey solution Plenty of people don't realize that the personal computer maker is in the business of artificial intelligence infrastructure. And for a long time, it wasn't.

Recognizing an opportunity to solve a largely ignored problem, however, in 2024, Dell launched an arm it simply calls the Dell AI Factory, offering corporations and their employees alike a way of utilizing the power of artificial intelligence without requiring AI expertise. And this business got a respectable start, making a measurable impact on that year's top and bottom lines.

Something significant changed last year, though. Following the introduction of AI-optimized servers that integrate with its other tech, Dell was able to offer "end-to-end AI infrastructure to support everything from edge inferencing on an AI PC to managing massive enterprise AI workloads in the data center."

Image source: Getty Images.

And as it turns out, this turnkey option is precisely what the market wanted, if not outright needed. Last year's infrastructure solutions revenue soared 40% to a record-breaking $60.8 billion, led by a surge in sales of artificial intelligence-optimized servers -- growth that persisted and even accelerated in Q1 of this year, when the company reported year-over-year revenue growth of 88%. Indeed, its AI server backlog now stands at $51.3 billion, well up from $43 billion just three months earlier.

What gives? Dell is undoubtedly leveraging its well-respected name within the business computing world. Mostly, though, it's institutional customers like that these AI-optimized servers easily integrate with other Dell-made solutions, and increasingly institutions appreciate the option of moving away from the public cloud and toward private, on-prem infrastructure, which is cheaper in the long run.

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Enough value, resiliency It's a compelling story for anyone looking for their next great artificial intelligence pick and, now, the AI industry's most resilient stocks. But much of whatever outsize performance this ticker is going to dole out for the year may already be in place. Dell shares are up more than 300% just since the end of last year. It could simply move sideways from here and still be one of 2026's top performers.

Nevertheless, keep this unexpected AI infrastructure name on your watch list. Priced at only 20 times next year's expected per-share profit of $22.13 (up 20% from this year's projection), the value already in place here is not only likely to bring a quick end to any pullbacks but also means there should be upside ahead even from its current price.

But the possibility of a broader reckoning for all artificial intelligence stocks? It's nothing to dismiss. It's arguable, however, that Dell's simple, cost-effective AI solutions may be relatively immune to such a headwind. After all, the world's still going to need this tech, even if it needs less of it than initially envisioned.

Dell Technologies Inc. (NYSE:DELL) stock fell more than 6% on Thursday, underperforming a stronger broader market, after a brokerage downgrade raised concerns about its valuation.

GF Securities downgraded Dell to Hold from Buy on Wednesday, citing valuation concerns following the stock’s sharp rally. The downgrade came as Piper Sandler analyst James Fish reiterated an Overweight rating and maintained a $497 price forecast.

AI Market Trends and Analyst CommentaryFish said Micron’s latest earnings and supply-demand commentary point to continued strength in AI infrastructure spending. The analyst noted that persistent memory supply constraints, accelerating AI server demand, and higher server shipment expectations support Dell’s outlook, along with other AI infrastructure names.

The pullback also comes after a strong run. Dell shares have gained more than 235% over the past 12 months, prompting some investors to lock in profits.

The broader market remained supportive. The Nasdaq gained 0.45%, while the S&P 500 added 0.19%. The Technology sector also traded modestly higher, suggesting Dell’s decline was driven by company-specific factors rather than broader market weakness.

Technical AnalysisDell is trading just below its 20-day simple moving average (SMA) of $407.12, indicating that near-term momentum has weakened after months of strong gains.

However, the longer-term trend remains intact. The stock is still 34.5% above its 50-day SMA, 80.7% above its 100-day SMA and 125.8% above its 200-day SMA.

Momentum indicators have cooled. The moving average convergence divergence (MACD) remains below its signal line, with a negative histogram, suggesting buying pressure has eased in the short term.

The stock continues to trade above its longer-term moving averages, and the “golden cross” formed in March remains in place. However, after reaching a fresh 52-week high in June, Dell could face additional profit-taking if buyers fail to defend current levels.

Key resistance stands near $469.50, while initial support is around $357.00.

Earnings and Analyst OutlookDell is expected to report fiscal second-quarter results on Aug. 27, 2026.

Wall Street expects earnings of $4.83 per share, up from $2.32 a year earlier, on revenue of $44.47 billion, compared with $29.78 billion in the prior-year quarter.

The stock trades at about 34.6 times forward earnings, reflecting a premium valuation.

Analysts maintain an overall Buy consensus with an average price forecast of $472.06. Recent analyst actions include:

Piper Sandler: Overweight, maintained $497 price forecast (June 24) GF Securities: Downgraded to Hold from Buy (June 24) Morgan Stanley: Equal-Weight, raised price forecast to $477 (June 23) Goldman Sachs: Buy, raised price forecast to $500 (June 1) Mizuho: Outperform, raised price forecast to $500 (June 1) Benzinga Edge RankingsDell continues to score highly on momentum despite Thursday’s decline.

Its Momentum score stands at 98.77, reflecting the stock’s strong long-term uptrend. Growth is rated 61.43, while Value scores 25.42, indicating investors continue to assign a premium valuation to the shares.

ETF ExposureDell remains a significant holding in several exchange-traded funds, including:

Large inflows or outflows in these funds can influence trading activity in Dell shares.

Price ActionDELL Stock Price Activity: Dell Technologies shares were down 6.35% at $406.50 at the time of publication on Thursday, according to Benzinga Pro data.

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