Core Insights - Dell Technologies (DELL) shares have decreased by 17.8% over the past three months, underperforming the broader Zacks Computer & Technology sector, which returned 3.2% [1][8] - The Computer - Micro Computers industry saw a 5% increase during the same period, with Dell's underperformance attributed to supply-chain constraints and competitive pressures in the PC and AI server markets [1][8] AI Server Demand - Dell Technologies is experiencing strong demand for AI servers, with $12.3 billion in orders booked in the third quarter of fiscal 2026, leading to a year-to-date total of $30 billion [4][8] - The company ended the fiscal third quarter with a record backlog of $18.4 billion in AI server orders, indicating sustained demand from a diverse customer base [5][8] Revenue Growth - The Infrastructure Solutions Group (ISG) revenue grew by 24% year over year to $14.10 billion in the third quarter of fiscal 2026, marking seven consecutive quarters of double-digit growth [6][8] - For the fourth quarter of fiscal 2026, revenues are projected to be between $31 billion and $32 billion, suggesting a 32% year-over-year growth [10] - Fiscal 2026 revenues are expected to range from $111.2 billion to $112.2 billion, indicating a 17% year-over-year growth [12] Earnings Outlook - Non-GAAP earnings for the fourth quarter are expected to be $3.50 per share, reflecting a 31% growth year over year [11] - For fiscal 2026, non-GAAP earnings are projected to be $9.92 per share, representing a 22% year-over-year increase [13] Valuation - Dell Technologies shares are considered undervalued, with a forward 12-month price-to-sales (P/S) ratio of 0.66X compared to the sector average of 7.41X, indicating a significant discount [14] Competitive Landscape - Despite its expanding portfolio, Dell faces stiff competition in the AI infrastructure market from companies like Hewlett-Packard (HPE), Cisco Systems (CSCO), and Super Micro Computer (SMCI) [16][20] - Competitors are also making significant advancements in AI infrastructure, which poses challenges for Dell [17][18][19]