Core Insights - Dell Technologies is expanding its cloud services through its infrastructure solutions and a robust partner ecosystem that supports cloud environments [1] Financial Performance - In Q2 of fiscal 2026, Infrastructure Solutions Group (ISG) revenues, including cloud offerings, increased by 44% year over year to $16.80 billion [2] - The growth was driven by servers and networking revenues of $12.94 billion, which grew by 69% year over year, reflecting strong demand in AI and traditional servers [2] AI and Cloud Solutions - A significant driver of Dell's cloud infrastructure growth is its focus on AI-enabled cloud solutions, with AI server shipments reaching $8.2 billion in Q2 of fiscal 2026 and a $5.6 billion increase in orders [3] - Dell's AI solutions, such as the NVIDIA RTX Pro 6000 AI Factory, are designed for flexibility and power efficiency, crucial for cloud environments [4] Product Advancements - In September 2025, Dell Technologies announced advancements in private cloud infrastructure, including the general availability of Dell Private Cloud and new models like PowerStore and PowerMax QLC [5] Competitive Landscape - Dell Technologies faces strong competition in the cloud market from Microsoft and Alphabet, with Microsoft Cloud revenues reaching $46.7 billion in Q4 of fiscal 2025, a 27% year-over-year increase [6] - Alphabet's Google Cloud revenues surged by 31.7% year over year to $13.62 billion in Q2 of 2025, benefiting from AI infrastructure growth [7] Stock Performance and Valuation - Dell's shares have gained 29.9% year to date, outperforming the broader Zacks Computer & Technology sector's return of 23.1% [8] - Dell's forward 12-month Price/Sales ratio is 0.89X, significantly lower than the sector's 6.90X, indicating that the stock is undervalued [12] - The consensus estimate for fiscal 2026 earnings is $9.54 per share, suggesting a 17.20% year-over-year growth [15]

Core Insights - Dell Technologies is experiencing significant growth driven by AI and data center demand, achieving record revenues of $29.8 billion in Q2 fiscal 2026, a 19% increase year over year, with ISG revenue rising 44% to $16.8 billion [1][11] - The company shipped $8.2 billion in AI servers and secured $5.6 billion in new orders during the same quarter, indicating strong performance in the AI hardware market [2][11] - Dell's innovation in turnkey solutions, such as the NVIDIA RTX Pro 6000 AI Factory, positions it as a leader in the AI hardware sector, while its focus on modernizing data centers enhances its competitive advantage [3] Financial Performance - Dell Technologies has raised its full-year fiscal 2026 AI server shipment forecast to $20 billion, reflecting confidence in sustained demand [5][11] - The consensus estimate for fiscal 2026 earnings is $9.54 per share, representing a 17.20% year-over-year growth, with a slight increase of 0.73% in the past 30 days [14] Competitive Landscape - Dell faces strong competition from Hewlett Packard Enterprise (HPE) and Cisco Systems, both of which are expanding their AI infrastructure and data center modernization efforts [6] - HPE has introduced innovations in its networking portfolio and AI-native platforms aimed at simplifying IT operations [7] - Cisco Systems is leveraging its partnership with NVIDIA to enhance networking capabilities for AI clusters, driving enterprise AI orders [8] Valuation Metrics - Dell shares have gained 17.4% year to date, underperforming the broader Zacks Computer & Technology sector's return of 22.4%, but outperforming the Computer - Micro Computers industry, which has declined 1.5% [9] - The forward 12-month Price/Sales ratio for Dell is 0.80X, significantly lower than the sector's 7.10X, indicating that Dell shares are undervalued [12]