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Dell Technologies DELL is benefiting from the growing demand for AI solutions, which has been a major growth driver for its success. In the second quarter of fiscal 2026, Dell Technologies reported record AI shipments, with $8.2 billion in AI server shipments during the quarter and a backlog of $11.7 billion.
DELL’s AI pipeline continues to grow, with double-digit growth in enterprise and sovereign opportunities. The company raised its full-year AI server shipment guidance from $15 billion to $20 billion, reflecting strong momentum in this segment.
Dell Technologies’ AI solutions are gaining strong traction among enterprises across various industries, including financial services, healthcare, manufacturing, and education. The company has introduced innovative products like the NVIDIA RTX Pro 6000 AI Factory solutions, which offer performance, flexibility and power efficiency for managing AI workloads at scale.
Dell Technologies’ expanding AI portfolio has been noteworthy. The company recently introduced major enhancements to its AI Factory portfolio. The enhancements will help the company to increase automation, performance and scalability. It also aims to help businesses speed up and streamline their on-premises AI adoption.
The AI hardware and services total addressable market (TAM) is expected to double from $184 billion in 2023 to $356 billion by 2028. Dell Technologies’ strong performance and innovation in AI solutions signal potential for continued growth and upside in this high-demand sector.
Dell Technologies is facing stiff competition from Hewlett-Packard Enterprise HPE and Super Micro Computer SMCI, which are also benefiting from the growing demand for AI solutions.
Hewlett-Packard Enterprise is benefiting from the growing demand for AI solutions by leveraging its robust portfolio. In the third quarter of 2025, Hewlett-Packard Enterprise nearly doubled its AI orders sequentially, with sovereign opportunities growing approximately 250%. The company exited the quarter with a record AI backlog of $3.7 billion, showcasing its ability to meet increasing customer demand.
Super Micro Computer’s expanding portfolio has been noteworthy. In September 2025, Super Micro Computer 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.
DELL’s shares have gained 6.3% year to date, underperforming the broader Zacks Computer & Technology sector’s return of 23.6% and the Zacks Computer - Micro Computers industry rise of 8.8%.
DELL shares are cheap, with a forward 12-month Price/Sales of 0.73X compared with the Computer & Technology sector’s 6.69X. DELL has a Value Score of A.
The consensus mark for fiscal 2026 earnings is pegged at $9.54 per share, unchanged over the past 30 days. This suggests 17.20% year-over-year growth.
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
DELL currently carries a Zacks Rank #2 (Buy). 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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