Core Insights - Dell Technologies (DELL) shares have increased by 23% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 14.6% and the Zacks Computer - Micro Computers industry's decline of 7.6% [1][10] - The growth is primarily driven by strong demand for AI-related products and an expanding partner network [2][9] Financial Performance - In Q1 FY26, Dell reported record orders of $12.1 billion and a backlog of $14.4 billion, indicating robust demand for AI products [3] - Projected revenues for Q2 FY26 are expected to be between $28.5 billion and $29.5 billion, suggesting a year-over-year growth of 16% [12] - Non-GAAP earnings are anticipated to be $2.25 per share, indicating a 15% growth at the mid-point [13] AI Business Growth - Dell is experiencing significant growth in its AI-related business, particularly in AI servers, driven by digital transformation and interest in generative AI applications [2] - The company has introduced updates to its AI Data Platform, enhancing capabilities for managing AI workflows [6] - New server offerings, including PowerEdge R7725 and R770 featuring NVIDIA RTX PRO 6000 GPUs, are designed to accelerate AI workloads [8] Partner Network Expansion - Dell's expanding partner base includes notable companies such as Lowe's, NVIDIA, Microsoft, and Meta Platforms, contributing to its growth [9][11] - The partnership with Lowe's aims to enhance customer experiences through advanced AI and PC technology [11] Competitive Landscape - Despite its growth, Dell faces stiff competition in the server market from companies like Hewlett-Packard and Super Micro Computers [17] - Hewlett-Packard's server business has seen a 6% year-over-year growth, reaching $4.06 billion, driven by demand for AI-optimized servers [18] Valuation Metrics - Dell shares are considered undervalued, with a forward 12-month price-to-sales ratio of 0.89 compared to the sector average of 6.83 [14]

Core Insights - Dell Technologies (DELL) is showing strong upward momentum, trading above its 200-day and 50-day simple moving averages, indicating price stability and a long-term bullish trend [1][4] - The stock has gained 8% year-to-date, outperforming the broader Zacks Computer and Technology sector, which increased by 7%, while the Zacks Computer - Micro Computers industry declined by 15.6% [5][9] - Strong demand for AI servers and cloud offerings has driven significant revenue growth, with ISG revenue increasing by 12% year-over-year [9][13] Financial Performance - DELL expects Q2 FY26 revenue between $28.5 billion and $29.5 billion, indicating solid double-digit growth [9][18] - Non-GAAP earnings are projected at $2.25 per share, reflecting a 15% growth at the mid-point [19] - The Zacks Consensus Estimate for Q2 FY26 revenues is $29.14 billion, suggesting a year-over-year growth of 16.45% [18] Market Position - DELL's shares are considered undervalued, with a forward 12-month price-to-sales ratio of 0.79X compared to the sector's 6.58X [20] - The company has a Zacks Rank 1 (Strong Buy) and a Growth Score of B, indicating a favorable investment opportunity [23] Strategic Developments - DELL's expanding portfolio includes high-demand AI-optimized servers, contributing to a $12.1 billion increase in orders in the fiscal first quarter of 2026 [11][10] - The company is enhancing its cloud computing footprint through its APEX platform, which provides multi-cloud solutions and advanced AI infrastructure [12][13] - Partnerships with companies like Lowe's and Worley are enhancing DELL's capabilities in AI and cloud services [15][16][17]

Core Viewpoint - Dell Technologies (DELL) has experienced a significant share price increase of 36.6% over the past month, outperforming the broader Computer and Technology sector and the Micro Computers industry, driven by its expanding portfolio and strong partner network [1]. Group 1: Company Performance and Offerings - DELL's infrastructure solutions provide essential hardware and services that support cloud environments, transforming modern data centers with disaggregated infrastructure solutions that integrate storage, cyber resilience, software, and automation [2]. - The company addresses the evolving demands of on-premises, cloud, and edge environments, enabling organizations to manage and secure workloads efficiently with advanced storage systems like Power Protect Data Domain and PowerScale, enhanced by AI-driven ransomware detection [3]. - DELL's automated Private Cloud and NativeEdge offerings streamline deployment and management, ensuring modern data centers are agile, secure, and ready for future challenges [4]. Group 2: AI and Market Demand - DELL is benefiting from strong demand for AI servers, with a notable increase of $1.7 billion in orders for AI-optimized servers in the fourth quarter of fiscal 2025, shipping $2.1 billion worth of AI servers and maintaining a healthy backlog of $4.1 billion [8]. - The company has made significant upgrades to its AI Factory, introducing energy-efficient infrastructure and advanced cooling solutions to accelerate enterprise AI deployments across various environments [7]. Group 3: Partnerships and Collaborations - DELL's expanding partner base includes major companies like NVIDIA, Microsoft, and Meta Platforms, enhancing its AI capabilities and facilitating enterprise AI adoption through next-generation PowerEdge servers and integrated software solutions [10]. - Collaborations with Meta Platforms and Advanced Micro Devices aim to simplify the deployment of AI solutions and enhance telecom network monitoring and management [11]. Group 4: Financial Outlook - For the first quarter of fiscal 2026, DELL expects revenues between $22.5 billion and $23.5 billion, indicating a year-over-year growth of approximately 3% [12]. - Non-GAAP earnings are projected at $1.65 per share, reflecting a 25% growth at the midpoint, with a Zacks Consensus Estimate of $1.48 per share, indicating a year-over-year growth of 42.12% [13]. Group 5: Valuation and Market Position - DELL shares are considered undervalued, trading at a forward 12-month P/E of 0.77X compared to the sector's 6.14X, suggesting a significant discount [14]. - Despite the robust portfolio and expanding partner base, challenges such as a slower recovery in the broader PC market and cautious spending by enterprises may impact profitability [17].