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]