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DELL vs. APLD: Which AI Infrastructure Stock Is the Better Buy Now?
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Key Takeaways
Dell Technologies shipped $8.2B in AI servers in Q2 and raised full-year guidance to $20B.
APLD signed a $7B lease deal with CoreWeave for its new Polaris Forge 1 campus.
DELL trades at 0.76X forward sales, far below APLD's 14.46X, highlighting a valuation gap.
Dell Technologies (DELL - Free Report) and Applied Digital (APLD - Free Report) are major players in the AI Infrastructure space. While Dell Technologies focuses on AI-optimized servers and enterprise IT solutions, APLD specializes in high-performance computing and AI data centers.
Per the Mordor Intelligence report, the AI infrastructure market was worth $87.6 billion in 2025 and is expected to grow to $197.64 billion by 2030, registering a 17.71% CAGR during this period. Both Dell Technologies and Applied Digital are expected to benefit from the rapid growth pace.
So, DELL or APLD — Which of these AI Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for DELL Stock
Dell Technologies is benefiting in the AI Infrastructure market through strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications. Strong enterprise demand for AI-optimized servers aids DELL.
Dell Technologies’ leadership in AI-optimized servers is a key driver of growth. The company shipped $8.2 billion in AI servers in the second quarter of fiscal 2026. It raised its full-year AI server shipment guidance from $15 billion to $20 billion, highlighting the sustained demand for AI-driven solutions.
In the fiscal second quarter, Dell Technologies’ AI-optimized server momentum saw an increase of $5.6 billion in orders. The company’s AI backlog of $11.7 billion exiting the second quarter of fiscal 2026 and a growing opportunity pipeline further underscore the sustained demand for its solutions.
An expanding partner base, which includes companies such as Nvidia, AMD, and Meta, further strengthens its ecosystem. The company is experiencing strong interest from enterprises in its AI solutions, such as the NVIDIA RTX Pro 6000 AI Factory solutions, which are designed to manage the AI lifecycle at scale.
The Case for APLD Stock
Applied Materials is benefiting from the increasing demand for AI infrastructure. In the fourth quarter of fiscal 2025, the company signed transformative 15-year lease agreements with CoreWeave, an AI hyperscaler, to deliver 250 megawatts of critical IT load at its Ellendale, North Dakota campus, now named Polaris Forge 1. This agreement is expected to generate approximately $7 billion in contracted revenues over the lease term.
The Polaris Forge 1 is designed for artificial intelligence and high-performance computing tasks. It can scale up to 1 gigawatt. The first 100-megawatt facility is set to start operating in the fourth quarter of 2025. After that, a 150-megawatt facility will open in mid-2026, followed by another 150-megawatt facility in 2027.
Further expanding its footprint, in August 2025, APLD announced plans to start construction in September 2025 on Polaris Forge 2, a $3 billion, 280MW AI Factory located near Harwood, ND. It is expected to reach full capacity by early 2027. The campus, covering more than 900 acres and powered by Cass County Electric Cooperative, will create over 200 jobs and grow Applied Digital’s AI infrastructure in a state known for its abundant energy and business-friendly environment.
Price Performance and Valuation of DELL and APLD
Year to date, shares of DELL and APLD have appreciated 8% and 122.2%, respectively. The outperformance in APLD stock can be attributed to the growing demand for AI and high-performance computing infrastructure. This growth is driven by long-term partnerships with hyperscalers and scalable data center projects.
Despite DELL’s expanding portfolio and robust partner base, the company faces challenges from weaker demand for traditional servers and storage in North America, slower federal spending, and declining consumer PC revenue. Supply-chain costs and competitive pressures in the AI market are also impacting profitability.
DELL and APLD Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, DELL shares are currently cheap, as suggested by a Value Score of A. APLD shares are currently overvalued, as suggested by a Value Score of F.
In terms of forward 12-month Price/Sales, DELL’s shares are trading at 0.76X, lower than ALPD’s 14.46X.
DELL and APLD Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for DELL & APLD?
The Zacks Consensus Estimate for DELL’s fiscal 2026 earnings is pegged at $9.54 per share, which has increased 0.95% over the past 30 days. This indicates a 17.20% increase year over year.
For 2025, the Zacks Consensus Estimate for loss is pegged at 34 cents per share, which has increased 13 cents over the past 30 days. APLD reported a loss of 80 cents per share in the year-ago quarter.
Both Dell Technologies and Applied Digital benefit from the rapid expansion of the AI infrastructure market. Despite market challenges and macroeconomic headwinds, Dell Technologies’ innovation in AI infrastructure and positive earnings outlook, along with a cheaper valuation, support long-term strength.
APLD’s rapid expansion and high upside potential are noteworthy. However, it is currently overvalued with a high Price/Sales ratio, making it a risky investment. Additionally, the company is still operating at a loss, which raises concerns about its near-term profitability.
Image: Bigstock
DELL vs. APLD: Which AI Infrastructure Stock Is the Better Buy Now?
Key Takeaways
Dell Technologies (DELL - Free Report) and Applied Digital (APLD - Free Report) are major players in the AI Infrastructure space. While Dell Technologies focuses on AI-optimized servers and enterprise IT solutions, APLD specializes in high-performance computing and AI data centers.
Per the Mordor Intelligence report, the AI infrastructure market was worth $87.6 billion in 2025 and is expected to grow to $197.64 billion by 2030, registering a 17.71% CAGR during this period. Both Dell Technologies and Applied Digital are expected to benefit from the rapid growth pace.
So, DELL or APLD — Which of these AI Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for DELL Stock
Dell Technologies is benefiting in the AI Infrastructure market through strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications. Strong enterprise demand for AI-optimized servers aids DELL.
Dell Technologies’ leadership in AI-optimized servers is a key driver of growth. The company shipped $8.2 billion in AI servers in the second quarter of fiscal 2026. It raised its full-year AI server shipment guidance from $15 billion to $20 billion, highlighting the sustained demand for AI-driven solutions.
In the fiscal second quarter, Dell Technologies’ AI-optimized server momentum saw an increase of $5.6 billion in orders. The company’s AI backlog of $11.7 billion exiting the second quarter of fiscal 2026 and a growing opportunity pipeline further underscore the sustained demand for its solutions.
An expanding partner base, which includes companies such as Nvidia, AMD, and Meta, further strengthens its ecosystem. The company is experiencing strong interest from enterprises in its AI solutions, such as the NVIDIA RTX Pro 6000 AI Factory solutions, which are designed to manage the AI lifecycle at scale.
The Case for APLD Stock
Applied Materials is benefiting from the increasing demand for AI infrastructure. In the fourth quarter of fiscal 2025, the company signed transformative 15-year lease agreements with CoreWeave, an AI hyperscaler, to deliver 250 megawatts of critical IT load at its Ellendale, North Dakota campus, now named Polaris Forge 1. This agreement is expected to generate approximately $7 billion in contracted revenues over the lease term.
The Polaris Forge 1 is designed for artificial intelligence and high-performance computing tasks. It can scale up to 1 gigawatt. The first 100-megawatt facility is set to start operating in the fourth quarter of 2025. After that, a 150-megawatt facility will open in mid-2026, followed by another 150-megawatt facility in 2027.
Further expanding its footprint, in August 2025, APLD announced plans to start construction in September 2025 on Polaris Forge 2, a $3 billion, 280MW AI Factory located near Harwood, ND. It is expected to reach full capacity by early 2027. The campus, covering more than 900 acres and powered by Cass County Electric Cooperative, will create over 200 jobs and grow Applied Digital’s AI infrastructure in a state known for its abundant energy and business-friendly environment.
Price Performance and Valuation of DELL and APLD
Year to date, shares of DELL and APLD have appreciated 8% and 122.2%, respectively. The outperformance in APLD stock can be attributed to the growing demand for AI and high-performance computing infrastructure. This growth is driven by long-term partnerships with hyperscalers and scalable data center projects.
Despite DELL’s expanding portfolio and robust partner base, the company faces challenges from weaker demand for traditional servers and storage in North America, slower federal spending, and declining consumer PC revenue. Supply-chain costs and competitive pressures in the AI market are also impacting profitability.
DELL and APLD Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, DELL shares are currently cheap, as suggested by a Value Score of A. APLD shares are currently overvalued, as suggested by a Value Score of F.
In terms of forward 12-month Price/Sales, DELL’s shares are trading at 0.76X, lower than ALPD’s 14.46X.
DELL and APLD Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for DELL & APLD?
The Zacks Consensus Estimate for DELL’s fiscal 2026 earnings is pegged at $9.54 per share, which has increased 0.95% over the past 30 days. This indicates a 17.20% increase year over year.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
For 2025, the Zacks Consensus Estimate for loss is pegged at 34 cents per share, which has increased 13 cents over the past 30 days. APLD reported a loss of 80 cents per share in the year-ago quarter.
Applied Digital Corporation Price and Consensus
Applied Digital Corporation price-consensus-chart | Applied Digital Corporation Quote
Conclusion
Both Dell Technologies and Applied Digital benefit from the rapid expansion of the AI infrastructure market. Despite market challenges and macroeconomic headwinds, Dell Technologies’ innovation in AI infrastructure and positive earnings outlook, along with a cheaper valuation, support long-term strength.
APLD’s rapid expansion and high upside potential are noteworthy. However, it is currently overvalued with a high Price/Sales ratio, making it a risky investment. Additionally, the company is still operating at a loss, which raises concerns about its near-term profitability.
Dell Technologies carries a Zacks Rank #2 (Buy), making the stock a stronger pick compared to Applied Digital, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.