Dell Technologies(US:DELL) ZACKS·2025-11-18 18:31Core Insights - Dell Technologies is experiencing significant growth driven by the increasing demand for AI solutions, reporting record AI server shipments of $8.2 billion in Q2 fiscal 2026 and a backlog of $11.7 billion [1][11] - The company has raised its full-year AI server shipment guidance from $15 billion to $20 billion, indicating strong momentum in the AI segment [2][11] - Dell's AI solutions are gaining traction across various industries, including financial services, healthcare, manufacturing, and education, with innovative products like the NVIDIA RTX Pro 6000 AI Factory solutions [3][4] AI Market and Competition - The total addressable market for AI hardware and services is projected to double from $184 billion in 2023 to $356 billion by 2028, highlighting the growth potential in this sector [5] - Dell Technologies faces stiff competition from Hewlett-Packard Enterprise (HPE) and Super Micro Computer (SMCI), both of which are also capitalizing on the growing demand for AI solutions [6] - HPE reported nearly doubling its AI orders sequentially in Q3 2025, with a record AI backlog of $3.7 billion [7] - Super Micro Computer announced new AI-optimized servers, showcasing its expanding portfolio in the AI space [8] Financial Performance and Valuation - Dell's shares have gained 6.3% year to date, underperforming the broader Zacks Computer & Technology sector's return of 23.6% [9] - The company has a forward 12-month Price/Sales ratio of 0.73X, significantly lower than the sector's 6.69X, indicating that Dell shares are undervalued [12] - The consensus estimate for Dell's fiscal 2026 earnings is $9.54 per share, suggesting a year-over-year growth of 17.20% [14]