DELL Rides on Accelerating AI Infrastructure Demand: What's Ahead?

Dell Technologies DELL is benefiting from the accelerating demand for AI infrastructure, which has become a key driver of its financial performance. 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. 

A significant contributor to this success was the surge in orders for AI servers. 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 its 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.

Further expanding its portfolio in the AI infrastructure space, in November 2025, Dell Technologies announced a collaboration with IREN to deploy NVIDIA-powered, liquid-cooled AI infrastructure across North America and launch Canada’s first Dell PowerEdge XE9712 cluster with NVIDIA GB300 NVL72 to advance sovereign, efficient, renewable-energy-driven AI innovation.

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 Suffers From Stiff Competition

Dell Technologies is facing stiff competition from Hewlett-Packard Enterprise HPE and Super Micro Computer SMCI. Both Hewlett-Packard Enterprise and Super Micro Computer are expanding their footprint in the AI infrastructure space.

Hewlett-Packard Enterprise’s continuous investment in innovation is driving its success in AI infrastructure. This month, Hewlett-Packard Enterprise and NVIDIA expand their partnership to launch the AI Factory Lab in Grenoble, France, addressing EU customers’ needs for more control and autonomy over their AI infrastructure and data.

Super Micro Computer is well-positioned to benefit from the growing demand for AI infrastructure. The company recently expanded its NVIDIA Blackwell portfolio with new 4U and 2-OU (OCP) liquid-cooled NVIDIA HGX B300 systems. These systems offer up to 144 GPUs per rack, 2.1TB HBM3e memory, and improved liquid cooling. This helps maximize AI performance, efficiency, and scalability for hyperscale and AI factory deployments.

DELL’s Share Price Performance, Valuation, and Estimates

DELL’s shares have gained 3.6% in the trailing six-month period, underperforming the broader Zacks Computer & Technology sector’s return of 20.4% and the Zacks Computer - Micro Computers industry rise of 35%.

DELL Stock's Performance

DELL shares are cheap, with a forward 12-month Price/Sales of 0.69X compared with the Computer & Technology sector’s 6.62X. DELL has a Value Score of A.

DELL's Valuation

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $9.89 per share, which has increased 3.56% over the past 30 days. This suggests 21.50% year-over-year growth.

Dell Technologies Inc. Price and Consensus

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

DELL currently carries a Zacks Rank #3 (Hold). 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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