DELL Surges 37% in a Month: Should You Buy the Stock Now or Wait?

Dell Technologies DELL shares have surged 36.6% over the past month, outperforming the Zacks Computer and Technology sector’s appreciation of 18.8% and the Zacks Computer - Micro Computers industry’s growth of 4.3%. The outperformance can be attributed to DELL’s expanding portfolio and rich partner base. 

The company, through its infrastructure solutions, provides essential hardware and services that support cloud environments. DELL is transforming modern data centers with disaggregated infrastructure solutions that integrate storage, cyber resilience, software, and automation.

Addressing the evolving demands of on-premises, cloud, and edge environments, DELL empowers organizations to efficiently manage and secure workloads with advanced storage systems like Power Protect Data Domain and PowerScale, enhanced by AI-driven ransomware detection. 

Its automated Private Cloud and NativeEdge offerings streamline deployment and management, enabling faster provisioning and consistent control across diverse infrastructures. DELL’s comprehensive approach ensures modern data centers are agile, secure, and ready for future challenges.

One Month Performance

DELL’s Expanding Portfolio Aids Prospect

Dell Technologies’ expanding portfolio has been a key catalyst. The company has added major upgrades to its AI Factory, introducing energy-efficient infrastructure and advanced cooling solutions. These updates aim to simplify and accelerate enterprise AI deployments across edge, data center, and cloud environments.

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

In the fourth quarter of fiscal 2025, DELL’s AI-optimized server momentum saw an increase of $1.7 billion in orders. The company shipped $2.1 billion worth of AI servers in the fiscal fourth quarter, and the AI server backlog remained healthy at $4.1 billion.

Dell PowerEdge supports the NVIDIA NVDA Blackwell Ultra platform, including the upcoming NVIDIA HGX B300 NVL16, NVIDIA GB300 NVL72 and NVIDIA RTX PRO 6000 Blackwell Server Edition.

DELL Benefits From Expanding Clientele

DELL is benefiting from an expanding partner base that includes NVIDIA, Worley, Microsoft, Meta Platforms META, Advanced Micro Devices AMD and Imbue. 

In May 2025, Dell Technologies announced major advancements across the Dell AI Factory with NVIDIA to accelerate enterprise AI adoption. These include next-generation PowerEdge servers, enhanced AI data platforms, integrated software solutions, and new managed services for streamlined AI deployment.

Dell Technologies collaborated with Meta Platforms to make it easy for its customers to deploy Meta Platforms’ Llama 2 models on-premises with Dell Technologies’ AI-optimized portfolio.

In February 2025, Dell Technologies expanded its AI for Telecom program through a collaboration with Advanced Micro Devices to develop AI solutions that enhance real-time telecom network monitoring and management using Dell PowerEdge XE7745 servers powered by Advanced Micro Devices EPYC processors.

Dell Technologies Offers Positive Q1 FY26 Guidance

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

For the first quarter of fiscal 2026, revenues are expected to be between $22.5 billion and $23.5 billion, with the mid-point of $23 billion suggesting 3% year-over-year growth.

The Zacks Consensus Estimate for Dell Technologies’ first-quarter fiscal 2026 revenues is pegged at $23.1 billion, suggesting growth of 3.85% year over year.

Non-GAAP earnings are expected to be $1.65 per share (+/- 10 cents), indicating 25% growth at the midpoint. The Zacks Consensus Estimate for earnings is pegged at $1.48 per share, which has increased by a penny in the past 30 days. This indicates year-over-year growth of 42.12%.

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 B.

DELL stock is trading at a significant discount with a forward 12-month P/E of 0.77X compared with the Computer and Technology sector’s 6.14X.

Price/Sales (F12M)

Here’s Why You Should Hold DELL Stock for Now

Despite DELL’s robust portfolio and expanding partner base the broader PC market recovery is slower than expected, with customers delaying purchases to evaluate AI-enabled PCs and prepare for the Windows 10 end-of-life. 

A competitive pricing environment, especially in the CSG segment, has affected profitability. Cautious spending by enterprises and large customers on PCs and storage IT has been a concern for DELL’s investors.

Increasing competition in the AI data center market, along with a higher mix of AI-optimized servers, is expected to hurt gross margin expansion in the near term. Additionally, investor sentiment has also soured amid rising trade tension, with additional tariffs raising fears of escalating costs. 

DELL currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in 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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