DELL vs. SMCI: Which AI-Server Stock Should You Buy Right Now?

Dell Technologies DELL and Super Micro Computer SMCI are major players in the server space, focusing on artificial intelligence (AI)-driven infrastructure and cloud computing. While DELL is growing its presence in the server market through its PowerEdge servers, SMCI has rapidly emerged as a leader in high-performance, energy-efficient server systems.

Per IDC’s latest data, the AI infrastructure market is poised to surpass $758 billion in spending by 2029. Investments in AI servers have been a key catalyst, and with strong continued spending, both DELL and SMCI are well-positioned to capitalize on this massive growth opportunity.

Hence, investors should ask the question: Which of these server giants has the greater upside potential? Let’s find out.

The Case for DELL Stock

Dell Technologies is benefiting from strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications. The company shipped $8.2 billion in AI servers in the second quarter of fiscal 2026. 

The AI-optimized server momentum saw a $5.6 billion increase in orders. The company’s AI backlog of $11.7 billion exiting the second quarter of fiscal 2026 and a growing opportunity pipeline further underscore the sustained demand for its solutions. 

DELL has achieved significant growth in AI-optimized server shipments, delivering $10 billion worth of these servers in the first half of fiscal 2026 alone. The company projects $20 billion in AI server shipments for fiscal 2026, highlighting its strong momentum in the AI infrastructure space.

Expanding portfolio has been noteworthy. In September 2025, Dell Technologies introduced the Dell PowerEdge XR8720t, the industry’s first single-server solution for Open RAN and Cloud RAN, offering up to 72 cores, enhanced connectivity and AI-driven capabilities to boost performance and lower costs for telecom and edge deployments.

The Case for SMCI Stock

Super Micro Computer is often the first to market with the latest AI servers, including systems built on NVIDIA’s B200 and GB200 platforms, giving it a strong edge. This early availability gives Super Micro Computer a big edge in a fast-moving AI market. The company is also ready to support the next generation of platforms like NVIDIA B300 and AMD MI-350.

Expanding portfolio has been noteworthy. In September 2025, SMCI announced new AI-optimized servers at its INNOVATE! EMEA 2025 event in Madrid, featuring systems with NVIDIA RTX Pro, HGX B300, and GB300 NVL72 rack-scale solutions, as well as new edge platforms powered by Intel Xeon 6 SoCs and NVIDIA Jetson Orin NX.

The company is also leveraging its innovative Data Center Building Block Solution to provide end-to-end server and data center solutions, including plug-and-play servers, storage, cooling systems, power management and software. This approach helps customers accelerate deployment, optimize performance and reduce power consumption.

However, Super Micro Computer is facing several headwinds that raise concerns about its near-term performance and financial stability. It is suffering from customer delays in transitioning to new AI platforms, such as NVIDIA’s Blackwell. These delays have created uncertainty and highlighted Super Micro Computer’s dependence on NVIDIA’s product cycles.

Price Performance and Valuation of DELL and SMCI

Year to date, DELL Technologies and Super Micro Computer shares have rallied 23.9% and 31.9%, respectively. The outperformance in SMCI can be attributed to its growing demand for AI infrastructure. Its liquid cooling technology and modular design approach are likely to support sustainable growth in the data center end market.

Despite DELL’s expanding portfolio, it is facing a challenging macroeconomic environment, along with stiff competition in the PC market. Dell Technologies also faces challenges from weaker demand for traditional servers and storage in North America, slower federal spending and declining consumer PC revenue. 

DELL and SMCI Stock Performance

Valuation-wise, DELL shares are cheap, as suggested by a Value Score of A. Super Micro Computer shares are currently overvalued, as suggested by a Value Score of C.

In terms of forward 12-month Price/Earnings, DELL’s shares are trading at 14.20X, lower than SMCI’s 19.36X.

DELL and SMCI Valuation

How Do Earnings Estimates Compare for DELL & SMCI?

The Zacks Consensus Estimate for DELL’s fiscal 2026 earnings is pegged at $9.54 per share, which has remained unchanged over the past 30 days. This indicates a 17.20% increase year over year.

Dell Technologies Inc. Price and Consensus

Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote

However, Zacks’ Consensus Estimate for SMCI’s fiscal 2026 earnings is pegged at $2.15 per share, which has declined 15.3% over the past 30 days. This indicates a 4.37% increase year over year.

Super Micro Computer, Inc. Price and Consensus

Super Micro Computer, Inc. price-consensus-chart | Super Micro Computer, Inc. Quote

Conclusion

DELL’s robust portfolio and expanding partner base are key drivers that make the stock attractive for long-term investors. However, SMCI faces challenges from customer delays in adopting new AI platforms, heavy reliance on NVIDIA’s product cycles, and stretched valuation remains a concern.

Currently, Dell Technologies has a Zacks Rank #2 (Buy), making the stock a stronger pick than Super Micro Computer, which has a Zacks Rank #4 (Sell).

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

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This article originally published on Zacks Investment Research (zacks.com).

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