1 Reason to Buy Dell Technologies Stock Like There's No Tomorrow

Core Viewpoint - The excitement surrounding artificial intelligence (AI) is expected to lead to significant capital expenditures by major technology players in 2026, potentially inflating an AI stock market bubble further [1][2]. Group 1: AI Infrastructure Spending - Major technology companies, particularly the four hyperscalers including Alphabet, plan to spend approximately $650 billion on capital expenditures in 2026, with a substantial portion allocated to AI [2][6]. - Alphabet specifically intends to invest at least $175 billion in capital expenditures, with around 60% of that amount earmarked for servers, translating to over $100 billion dedicated to server infrastructure [6][7]. Group 2: Dell Technologies - Dell Technologies is experiencing a surge in demand for its AI server products, reporting an all-time high in orders and a backlog of $18.4 billion as of its fiscal third quarter of 2026 [5]. - The unprecedented demand for servers in 2026 is expected to create a supply-demand imbalance, which could indirectly benefit Dell, despite the hyperscalers often using white box servers [8]. - Current investor expectations for Dell stock are considered modest, with the stock trading at less than 11 times its forward earnings, indicating a reasonable valuation [9].