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 ISG revenues surged 181% year over year to $29B, while total revenues rose 88% to $43.8B.
Dell expands AI Factory via NVIDIA, Google Cloud and others to integrate AI across the stack.
Dell AI server revenues hit $16.1B; expects about $60B in fiscal 2027.
Dell Technologies (DELL - Free Report) is benefiting significantly from its robust partner network, which has been a key driver of growth in its Infrastructure Solutions Group (“ISG”). In the first quarter of fiscal 2027, ISG revenues surged 181% year over year to a record $29 billion, while total revenues rose 88% to $43.8 billion. The company continues to strengthen the Dell AI Factory through collaborations with NVIDIA, Google Cloud, OpenAI, xAI, ServiceNow, Palantir, Mistral and CrowdStrike, enabling integrated AI solutions across compute, storage, networking, software and services.
A key catalyst is Dell’s growing partnership with NVIDIA. The newly announced PowerEdge R9822 and M9822 servers powered by NVIDIA Vera CPUs expand the Dell AI Factory portfolio and support agentic AI workloads, including data processing, retrieval, orchestration and runtime operations. Dell also enhanced support for NVIDIA networking, AI software, digital twins and robotics technologies, further strengthening its end-to-end AI infrastructure offerings.
Dell recently became the first company to ship NVIDIA Vera Rubin-based systems to CoreWeave. Its PowerRack platform, powered by NVIDIA Vera Rubin NVL72, delivers up to 10 times lower AI inference cost per token than previous-generation systems, improving the economics of large-scale agentic AI deployments.
The company’s AI server business has been a key catalyst. AI-optimized server revenues reached $16.1 billion during the fiscal first quarter, and Dell expects approximately $60 billion in AI server revenues for fiscal 2027. The company’s AI customer base now exceeds 5,000 organizations across enterprise, sovereign and neocloud markets.
Dell Technologies’ innovative portfolio, expanding partner base and increasing AI footprint are significant growth drivers. For the second quarter of fiscal 2027, Dell expects revenues between $44 billion and $45 billion, up roughly 50% at the midpoint of $44.5 billion. ISG is expected to grow roughly 75%, supported by $15.5 billion in AI server revenues.
Dell’s AI Infrastructure Push Faces Tough Rivals
Dell Technologies is a major player in the AI infrastructure market but faces stiff competition from Super Micro Computer (SMCI - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) .
Super Micro Computer is strengthening its AI infrastructure business through its Data Center Building Block Solutions (“DCBBS”), which provides end-to-end data center solutions, including liquid cooling, networking, power systems, software and services. The company highlighted its industry-leading time-to-online capabilities, helping customers deploy AI factories faster and more efficiently. Strong engineering expertise, design-for-manufacturing initiatives and factory automation are improving production speed, quality and margins. Super Micro Computer continues to expand partnerships with NVIDIA, AMD, Intel and Arm while increasing manufacturing capacity globally. Management believes DCBBS, software and services will become significant profit drivers as demand for AI infrastructure continues to grow.
HPE is benefiting from strong AI and networking demand, with AI systems orders reaching $1.8 billion and expanding into orchestration, data movement and agentic AI workloads. Record backlog and a pipeline multiple times larger than the backlog support growth visibility. HPE is seeing rising demand for high-memory servers and AI inference, while the Juniper integration is driving networking momentum and cross-selling opportunities. Management expects durable demand, sustained AI adoption and continued growth across its Cloud & AI and Networking businesses through fiscal 2027.
Shares of Dell have gained 213.3% year to date, outperforming the broader Computer & Technology sector and the Zacks Computer - Micro Computers industry’s growth of 16.1% and 17.2%, respectively.
DELL’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, its forward price-to-earnings ratio of 26.25 is significantly below the industry’s average of 32.4.
DELL’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $14.54 per share, increasing 9.9% over the past 30 days. This suggests 41.17% year-over-year growth.
View the Zacks #1 Rank List
Image: Bigstock
DELL's Strong Partner Network Drives ISG Growth: What's Ahead?
Key Takeaways
Dell Technologies (DELL - Free Report) is benefiting significantly from its robust partner network, which has been a key driver of growth in its Infrastructure Solutions Group (“ISG”). In the first quarter of fiscal 2027, ISG revenues surged 181% year over year to a record $29 billion, while total revenues rose 88% to $43.8 billion. The company continues to strengthen the Dell AI Factory through collaborations with NVIDIA, Google Cloud, OpenAI, xAI, ServiceNow, Palantir, Mistral and CrowdStrike, enabling integrated AI solutions across compute, storage, networking, software and services.
A key catalyst is Dell’s growing partnership with NVIDIA. The newly announced PowerEdge R9822 and M9822 servers powered by NVIDIA Vera CPUs expand the Dell AI Factory portfolio and support agentic AI workloads, including data processing, retrieval, orchestration and runtime operations. Dell also enhanced support for NVIDIA networking, AI software, digital twins and robotics technologies, further strengthening its end-to-end AI infrastructure offerings.
Dell recently became the first company to ship NVIDIA Vera Rubin-based systems to CoreWeave. Its PowerRack platform, powered by NVIDIA Vera Rubin NVL72, delivers up to 10 times lower AI inference cost per token than previous-generation systems, improving the economics of large-scale agentic AI deployments.
The company’s AI server business has been a key catalyst. AI-optimized server revenues reached $16.1 billion during the fiscal first quarter, and Dell expects approximately $60 billion in AI server revenues for fiscal 2027. The company’s AI customer base now exceeds 5,000 organizations across enterprise, sovereign and neocloud markets.
Dell Technologies’ innovative portfolio, expanding partner base and increasing AI footprint are significant growth drivers. For the second quarter of fiscal 2027, Dell expects revenues between $44 billion and $45 billion, up roughly 50% at the midpoint of $44.5 billion. ISG is expected to grow roughly 75%, supported by $15.5 billion in AI server revenues.
Dell’s AI Infrastructure Push Faces Tough Rivals
Dell Technologies is a major player in the AI infrastructure market but faces stiff competition from Super Micro Computer (SMCI - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) .
Super Micro Computer is strengthening its AI infrastructure business through its Data Center Building Block Solutions (“DCBBS”), which provides end-to-end data center solutions, including liquid cooling, networking, power systems, software and services. The company highlighted its industry-leading time-to-online capabilities, helping customers deploy AI factories faster and more efficiently. Strong engineering expertise, design-for-manufacturing initiatives and factory automation are improving production speed, quality and margins. Super Micro Computer continues to expand partnerships with NVIDIA, AMD, Intel and Arm while increasing manufacturing capacity globally. Management believes DCBBS, software and services will become significant profit drivers as demand for AI infrastructure continues to grow.
HPE is benefiting from strong AI and networking demand, with AI systems orders reaching $1.8 billion and expanding into orchestration, data movement and agentic AI workloads. Record backlog and a pipeline multiple times larger than the backlog support growth visibility. HPE is seeing rising demand for high-memory servers and AI inference, while the Juniper integration is driving networking momentum and cross-selling opportunities. Management expects durable demand, sustained AI adoption and continued growth across its Cloud & AI and Networking businesses through fiscal 2027.
DELL’s Share Price Performance, Valuation & Estimates
Shares of Dell have gained 213.3% year to date, outperforming the broader Computer & Technology sector and the Zacks Computer - Micro Computers industry’s growth of 16.1% and 17.2%, respectively.
DELL’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, its forward price-to-earnings ratio of 26.25 is significantly below the industry’s average of 32.4.
DELL’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $14.54 per share, increasing 9.9% over the past 30 days. This suggests 41.17% year-over-year growth.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
DELL currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.