DELL Stock Soars 24% in the Past 6 Months: Should You Buy Now or Wait?

Dell Technologies DELL shares have gained 24.3% in the past six-month period, underperforming the broader Zacks Computer & Technology sector’s return of 27.7%. The Computer - Micro Computers industry increased 40.8% in the same time frame. 

DELL stock has also underperformed its peer, Hewlett-Packard HPE, which is also expanding its footprint in the server space. Hewlett-Packard shares have rallied 29% in the past six-month period.

The underperformance can be attributed to supply-chain constraints and competitive pressures in the PC and AI server markets.

However, Dell Technologies is benefiting from strong demand for AI servers, driven by ongoing digital transformation and heightened interest in generative AI applications.

DELL Stock's Performance

DELL Benefits From Expanding Portfolio

Dell Technologies’ expanding portfolio has been a key catalyst. Its leadership in AI-optimized servers has contributed to the rise in its Infrastructure Solutions Group (ISG) revenue. In the third quarter of fiscal 2026, ISG revenues grew 24% year over year to $14.10 billion, marking seven consecutive quarters of double-digit growth.

In the third quarter of fiscal 2026, Dell Technologies booked $12.3 billion in AI server orders, bringing year-to-date orders to $30 billion. The company shipped $5.6 billion worth of AI servers in the fiscal third quarter. 

The company ended the fiscal third quarter with a record backlog of $18.4 billion in AI server orders, highlighting the sustained demand for its AI solutions. The demand for AI servers is driven by a diverse and expanding customer base, including Neoclouds, Tier 2 cloud service providers, Sovereigns, and Enterprises.

Dell Technologies’ focus on AI infrastructure has positioned it as a leader in the market. The company expects to ship approximately $9.4 billion worth of AI servers in the fiscal fourth quarter of 2026. Its AI server shipments are expected to reach $25 billion for fiscal 2026, representing a remarkable 150% year-over-year growth.

DELL’s Offers Positive Q4 & FY26 Guidance

Dell Technologies’ innovative portfolio, expanding partner base and growing AI footprint are significant growth drivers.  

For the fourth quarter of fiscal 2026, revenues are expected to be between $31 billion and $32 billion, with the mid-point of $31.5 billion suggesting 32% year-over-year growth. The Zacks Consensus Estimate for Dell Technologies’ fourth-quarter fiscal 2026 revenues is pegged at $31.62 billion, suggesting growth of 32.12% year over year.

Non-GAAP earnings are expected to be $3.50 per share (+/- 10 cents) at the midpoint, indicating 31% growth year over year. The Zacks Consensus Estimate for earnings is pegged at $3.46 per share, which has increased 10.54% over the past 30 days. This indicates year-over-year growth of 32.12%.

For fiscal 2026, revenues are expected to be between $111.2 billion and $112.2 billion, with the mid-point of $111.7 billion indicating 17% year-over-year growth. The Zacks Consensus Estimate for Dell Technologies’ fiscal 2026 revenues is pegged at $111.78 billion, suggesting growth of 16.96% year over year.

Non-GAAP earnings are expected to be $9.92 per share (+/- 10 cents) at the midpoint, up 22% year over year. The Zacks Consensus Estimate for earnings is pegged at $9.89 per share, which has increased 4% over the past 30 days. This indicates year-over-year growth of 21.50%.

Dell Technologies Inc. Price and Consensus

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

DELL Shares Trading Cheap

Dell Technologies shares are cheap, as suggested by a Value Score of A.

Dell Technologies’ stock is trading at a significant discount with a forward 12-month P/S of 0.78X compared with the Computer and Technology sector’s 6.73X.

Price/Sales (F12M)

DELL Faces Stiff Competition

Despite DELL’s innovative portfolio, expanding partner base and growing AI footprint, the company is facing stiff competition from the likes of Cisco Systems CSCO, Hewlett-Packard, and Super Micro Computers SMCI, which are also expanding their footprint in the AI infrastructure space.

Strong demand for Cisco Systems products in developing AI infrastructure has been a game-changer for the company. In the first quarter of fiscal 2026, Cisco Systems received AI Infrastructure orders from webscale customers that exceeded $1.3 billion. 

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 significant edge in a fast-moving AI market. The company is also ready to support the next generation of platforms like NVIDIA B300 and AMD MI350.

What Should Investors Do With DELL Stock?

Dell Technologies benefits from rising demand for AI-optimized servers and an expanding partner network. The company’s innovation in AI infrastructure and positive earnings outlook support long-term strength.

However, Dell Technologies is facing declining consumer PC revenue, which remains a headwind. Supply-chain costs and competitive pressures in the AI market are also impacting profitability. 

Dell Technologies currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to accumulate the stock. 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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