We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DELL Surges 37% in a Month: Should You Buy the Stock Now or Wait?
Read MoreHide Full Article
Dell Technologies (DELL - Free Report) shares have surged 36.6% over the past month, outperforming the Zacks Computer and Technology sector’s appreciation of 18.8% and the Zacks Computer - Micro Computers industry’s growth of 4.3%. The outperformance can be attributed to DELL’s expanding portfolio and rich partner base.
The company, through its infrastructure solutions, provides essential hardware and services that support cloud environments. DELL is transforming modern data centers with disaggregated infrastructure solutions that integrate storage, cyber resilience, software, and automation.
Addressing the evolving demands of on-premises, cloud, and edge environments, DELL empowers organizations to efficiently manage and secure workloads with advanced storage systems like Power Protect Data Domain and PowerScale, enhanced by AI-driven ransomware detection.
Its automated Private Cloud and NativeEdge offerings streamline deployment and management, enabling faster provisioning and consistent control across diverse infrastructures. DELL’s comprehensive approach ensures modern data centers are agile, secure, and ready for future challenges.
One Month Performance
Image Source: Zacks Investment Research
DELL’s Expanding Portfolio Aids Prospect
Dell Technologies’ expanding portfolio has been a key catalyst. The company has added major upgrades to its AI Factory, introducing energy-efficient infrastructure and advanced cooling solutions. These updates aim to simplify and accelerate enterprise AI deployments across edge, data center, and cloud environments.
Dell Technologies is benefiting from strong demand for AI servers, driven by ongoing digital transformation and heightened interest in generative AI applications.
In the fourth quarter of fiscal 2025, DELL’s AI-optimized server momentum saw an increase of $1.7 billion in orders. The company shipped $2.1 billion worth of AI servers in the fiscal fourth quarter, and the AI server backlog remained healthy at $4.1 billion.
Dell PowerEdge supports the NVIDIA (NVDA - Free Report) Blackwell Ultra platform, including the upcoming NVIDIA HGX B300 NVL16, NVIDIA GB300 NVL72 and NVIDIA RTX PRO 6000 Blackwell Server Edition.
DELL Benefits From Expanding Clientele
DELL is benefiting from an expanding partner base that includes NVIDIA, Worley, Microsoft, Meta Platforms (META - Free Report) , Advanced Micro Devices (AMD - Free Report) and Imbue.
In May 2025, Dell Technologies announced major advancements across the Dell AI Factory with NVIDIA to accelerate enterprise AI adoption. These include next-generation PowerEdge servers, enhanced AI data platforms, integrated software solutions, and new managed services for streamlined AI deployment.
Dell Technologies collaborated with Meta Platforms to make it easy for its customers to deploy Meta Platforms’ Llama 2 models on-premises with Dell Technologies’ AI-optimized portfolio.
In February 2025, Dell Technologies expanded its AI for Telecom program through a collaboration with Advanced Micro Devices to develop AI solutions that enhance real-time telecom network monitoring and management using Dell PowerEdge XE7745 servers powered by Advanced Micro Devices EPYC processors.
Dell Technologies’ innovative portfolio, expanding partner base and growing AI footprint are major growth drivers.
For the first quarter of fiscal 2026, revenues are expected to be between $22.5 billion and $23.5 billion, with the mid-point of $23 billion suggesting 3% year-over-year growth.
The Zacks Consensus Estimate for Dell Technologies’ first-quarter fiscal 2026 revenues is pegged at $23.1 billion, suggesting growth of 3.85% year over year.
Non-GAAP earnings are expected to be $1.65 per share (+/- 10 cents), indicating 25% growth at the midpoint. The Zacks Consensus Estimate for earnings is pegged at $1.48 per share, which has increased by a penny in the past 30 days. This indicates year-over-year growth of 42.12%.
Dell Technologies shares are cheap, as suggested by a Value Score of B.
DELL stock is trading at a significant discount with a forward 12-month P/E of 0.77X compared with the Computer and Technology sector’s 6.14X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Here’s Why You Should Hold DELL Stock for Now
Despite DELL’s robust portfolio and expanding partner base the broader PC market recovery is slower than expected, with customers delaying purchases to evaluate AI-enabled PCs and prepare for the Windows 10 end-of-life.
A competitive pricing environment, especially in the CSG segment, has affected profitability. Cautious spending by enterprises and large customers on PCs and storage IT has been a concern for DELL’s investors.
Increasing competition in the AI data center market, along with a higher mix of AI-optimized servers, is expected to hurt gross margin expansion in the near term. Additionally, investor sentiment has also soured amid rising trade tension, with additional tariffs raising fears of escalating costs.
Image: Bigstock
DELL Surges 37% in a Month: Should You Buy the Stock Now or Wait?
Dell Technologies (DELL - Free Report) shares have surged 36.6% over the past month, outperforming the Zacks Computer and Technology sector’s appreciation of 18.8% and the Zacks Computer - Micro Computers industry’s growth of 4.3%. The outperformance can be attributed to DELL’s expanding portfolio and rich partner base.
The company, through its infrastructure solutions, provides essential hardware and services that support cloud environments. DELL is transforming modern data centers with disaggregated infrastructure solutions that integrate storage, cyber resilience, software, and automation.
Addressing the evolving demands of on-premises, cloud, and edge environments, DELL empowers organizations to efficiently manage and secure workloads with advanced storage systems like Power Protect Data Domain and PowerScale, enhanced by AI-driven ransomware detection.
Its automated Private Cloud and NativeEdge offerings streamline deployment and management, enabling faster provisioning and consistent control across diverse infrastructures. DELL’s comprehensive approach ensures modern data centers are agile, secure, and ready for future challenges.
One Month Performance
Image Source: Zacks Investment Research
DELL’s Expanding Portfolio Aids Prospect
Dell Technologies’ expanding portfolio has been a key catalyst. The company has added major upgrades to its AI Factory, introducing energy-efficient infrastructure and advanced cooling solutions. These updates aim to simplify and accelerate enterprise AI deployments across edge, data center, and cloud environments.
Dell Technologies is benefiting from strong demand for AI servers, driven by ongoing digital transformation and heightened interest in generative AI applications.
In the fourth quarter of fiscal 2025, DELL’s AI-optimized server momentum saw an increase of $1.7 billion in orders. The company shipped $2.1 billion worth of AI servers in the fiscal fourth quarter, and the AI server backlog remained healthy at $4.1 billion.
Dell PowerEdge supports the NVIDIA (NVDA - Free Report) Blackwell Ultra platform, including the upcoming NVIDIA HGX B300 NVL16, NVIDIA GB300 NVL72 and NVIDIA RTX PRO 6000 Blackwell Server Edition.
DELL Benefits From Expanding Clientele
DELL is benefiting from an expanding partner base that includes NVIDIA, Worley, Microsoft, Meta Platforms (META - Free Report) , Advanced Micro Devices (AMD - Free Report) and Imbue.
In May 2025, Dell Technologies announced major advancements across the Dell AI Factory with NVIDIA to accelerate enterprise AI adoption. These include next-generation PowerEdge servers, enhanced AI data platforms, integrated software solutions, and new managed services for streamlined AI deployment.
Dell Technologies collaborated with Meta Platforms to make it easy for its customers to deploy Meta Platforms’ Llama 2 models on-premises with Dell Technologies’ AI-optimized portfolio.
In February 2025, Dell Technologies expanded its AI for Telecom program through a collaboration with Advanced Micro Devices to develop AI solutions that enhance real-time telecom network monitoring and management using Dell PowerEdge XE7745 servers powered by Advanced Micro Devices EPYC processors.
Dell Technologies Offers Positive Q1 FY26 Guidance
Dell Technologies’ innovative portfolio, expanding partner base and growing AI footprint are major growth drivers.
For the first quarter of fiscal 2026, revenues are expected to be between $22.5 billion and $23.5 billion, with the mid-point of $23 billion suggesting 3% year-over-year growth.
The Zacks Consensus Estimate for Dell Technologies’ first-quarter fiscal 2026 revenues is pegged at $23.1 billion, suggesting growth of 3.85% year over year.
Non-GAAP earnings are expected to be $1.65 per share (+/- 10 cents), indicating 25% growth at the midpoint. The Zacks Consensus Estimate for earnings is pegged at $1.48 per share, which has increased by a penny in the past 30 days. This indicates year-over-year growth of 42.12%.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
DELL Shares Trading Cheap
Dell Technologies shares are cheap, as suggested by a Value Score of B.
DELL stock is trading at a significant discount with a forward 12-month P/E of 0.77X compared with the Computer and Technology sector’s 6.14X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Here’s Why You Should Hold DELL Stock for Now
Despite DELL’s robust portfolio and expanding partner base the broader PC market recovery is slower than expected, with customers delaying purchases to evaluate AI-enabled PCs and prepare for the Windows 10 end-of-life.
A competitive pricing environment, especially in the CSG segment, has affected profitability. Cautious spending by enterprises and large customers on PCs and storage IT has been a concern for DELL’s investors.
Increasing competition in the AI data center market, along with a higher mix of AI-optimized servers, is expected to hurt gross margin expansion in the near term. Additionally, investor sentiment has also soured amid rising trade tension, with additional tariffs raising fears of escalating costs.
DELL currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.