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Dell Benefits From Expanding AI Portfolio: Is the Stock a Must-Have?
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Key Takeaways
DELL booked $24.4B in AI orders and ended Q1 FY2027 with a record $51.3B AI backlog.
DELL launched the PowerEdge XE8812 with NVIDIA to meet rising AI and HPC infrastructure demand.
DELL expects Q2 FY2027 revenues of $44B-$45B, supported by AI servers and enterprise demand.
Dell Technologies (DELL - Free Report) shares have surged 239.8% year to date, significantly outperforming the broader Zacks Computer & Technology sector's return of 18.6%.
The outperformance can be attributed to an innovative portfolio, expanding partner base, and growing AI footprint. In the first quarter of fiscal 2027, the company booked $24.4 billion in AI orders and recognized $16.1 billion in AI server revenues, exiting the quarter with a record $51.3 billion AI backlog.
The customer base for AI solutions surpassed 5,000, representing more than 50% over the past six months, with gains across neocloud, sovereign and enterprise customers.
DELL Benefits From Rising AI Infrastructure Demand
Dell Technologies’ expansion of its AI portfolio remains noteworthy. The company continues to strengthen the Dell AI Factory through collaborations with NVIDIA (NVDA - Free Report) , Alphabet’s (GOOGL - Free Report) cloud computing platform Google Cloud, OpenAI, xAI, ServiceNow, Palantir, Mistral and CrowdStrike, enabling integrated AI solutions across compute, storage, networking, software and services.
Building on this momentum, the company recently introduced the new PowerEdge XE8812 server as part of the Dell AI Factory with NVIDIA, aimed at addressing the growing demand for artificial intelligence and high-performance computing workloads. Powered by NVIDIA's Vera Rubin NVL4 architecture, the platform supports up to 144 GPUs per rack, making it one of the industry’s highest-density AI infrastructure offerings.
The new server is designed to support demanding workloads, including AI training, inference and scientific simulations, while delivering higher memory capacity, greater compute density and improved energy efficiency. These capabilities are expected to help enterprises and research institutions accelerate AI adoption and large-scale innovation initiatives.
The PowerEdge XE8812 strengthens Dell Technologies’ AI infrastructure portfolio and is expected to drive broader adoption of Dell AI Factory solutions, supporting the company's long-term growth prospects.
DELL’s Rich Partner Base Supports Prospects
Dell Technologies’ growing partner base, which includes NVIDIA, Alphabet, OpenAI, ServiceNow, Palantir, Mistral, CrowdStrike and Advanced Micro Devices (AMD - Free Report) , is expected to support its long-term growth prospects.
DELL is bringing Alphabet’s Google Distributed Cloud and Gemini models on-premises with confidential compute to address data residency and sovereignty needs. The company is advancing the Dell AI Data Platform to help customers make enterprise data AI-ready at scale, with stronger orchestration, faster indexing of unstructured data and improved analytics performance.
In May 2026, Dell Technologies announced that Dell PowerEdge servers will support Advanced Micro Devices Instinct MI350P PCIe GPUs, equipping enterprises with a high-performance, cost-effective option to scale agentic and generative AI deployments. The company is enhancing the Dell AI Platform with Advanced Micro Devices to help scale AI workloads from pilot to production.
DELL Initiates Strong Q2 Guidance
Dell Technologies’ expanding AI portfolio and growing partner ecosystem reflect strong long-term growth prospects.
For the second quarter of fiscal 2027, Dell expects revenues to be in the range of $44-$45 billion, implying year-over-year growth of roughly 50% at the midpoint, driven by continued strength in AI servers and enterprise demand.
The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $44.85 billion, indicating year-over-year growth of 50.62%.
Non-GAAP earnings are expected to be $4.80 (plus or minus 10 cents). The consensus mark for earnings is pegged at $4.83 per share, up 52.8% over the past 30 days. The figure implies a year-over-year increase of 108.19%.
What Should Investors do With DELL Stock?
Dell Technologies’ strong position in the rapidly expanding AI infrastructure market, robust AI demand and continued market share gains across servers, storage and PCs position the company well for sustained long-term growth.
View the Zacks #1 Rank List
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Dell Benefits From Expanding AI Portfolio: Is the Stock a Must-Have?
Key Takeaways
Dell Technologies (DELL - Free Report) shares have surged 239.8% year to date, significantly outperforming the broader Zacks Computer & Technology sector's return of 18.6%.
The outperformance can be attributed to an innovative portfolio, expanding partner base, and growing AI footprint. In the first quarter of fiscal 2027, the company booked $24.4 billion in AI orders and recognized $16.1 billion in AI server revenues, exiting the quarter with a record $51.3 billion AI backlog.
The customer base for AI solutions surpassed 5,000, representing more than 50% over the past six months, with gains across neocloud, sovereign and enterprise customers.
DELL Benefits From Rising AI Infrastructure Demand
Dell Technologies’ expansion of its AI portfolio remains noteworthy. The company continues to strengthen the Dell AI Factory through collaborations with NVIDIA (NVDA - Free Report) , Alphabet’s (GOOGL - Free Report) cloud computing platform Google Cloud, OpenAI, xAI, ServiceNow, Palantir, Mistral and CrowdStrike, enabling integrated AI solutions across compute, storage, networking, software and services.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
Building on this momentum, the company recently introduced the new PowerEdge XE8812 server as part of the Dell AI Factory with NVIDIA, aimed at addressing the growing demand for artificial intelligence and high-performance computing workloads. Powered by NVIDIA's Vera Rubin NVL4 architecture, the platform supports up to 144 GPUs per rack, making it one of the industry’s highest-density AI infrastructure offerings.
The new server is designed to support demanding workloads, including AI training, inference and scientific simulations, while delivering higher memory capacity, greater compute density and improved energy efficiency. These capabilities are expected to help enterprises and research institutions accelerate AI adoption and large-scale innovation initiatives.
The PowerEdge XE8812 strengthens Dell Technologies’ AI infrastructure portfolio and is expected to drive broader adoption of Dell AI Factory solutions, supporting the company's long-term growth prospects.
DELL’s Rich Partner Base Supports Prospects
Dell Technologies’ growing partner base, which includes NVIDIA, Alphabet, OpenAI, ServiceNow, Palantir, Mistral, CrowdStrike and Advanced Micro Devices (AMD - Free Report) , is expected to support its long-term growth prospects.
DELL is bringing Alphabet’s Google Distributed Cloud and Gemini models on-premises with confidential compute to address data residency and sovereignty needs. The company is advancing the Dell AI Data Platform to help customers make enterprise data AI-ready at scale, with stronger orchestration, faster indexing of unstructured data and improved analytics performance.
In May 2026, Dell Technologies announced that Dell PowerEdge servers will support Advanced Micro Devices Instinct MI350P PCIe GPUs, equipping enterprises with a high-performance, cost-effective option to scale agentic and generative AI deployments. The company is enhancing the Dell AI Platform with Advanced Micro Devices to help scale AI workloads from pilot to production.
DELL Initiates Strong Q2 Guidance
Dell Technologies’ expanding AI portfolio and growing partner ecosystem reflect strong long-term growth prospects.
For the second quarter of fiscal 2027, Dell expects revenues to be in the range of $44-$45 billion, implying year-over-year growth of roughly 50% at the midpoint, driven by continued strength in AI servers and enterprise demand.
The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $44.85 billion, indicating year-over-year growth of 50.62%.
Non-GAAP earnings are expected to be $4.80 (plus or minus 10 cents). The consensus mark for earnings is pegged at $4.83 per share, up 52.8% over the past 30 days. The figure implies a year-over-year increase of 108.19%.
What Should Investors do With DELL Stock?
Dell Technologies’ strong position in the rapidly expanding AI infrastructure market, robust AI demand and continued market share gains across servers, storage and PCs position the company well for sustained long-term growth.
Dell Technologies’ currently sports a Zacks Rank #1 (Strong Buy), making the stock an attractive investment option for growth-oriented investors. You can see the complete list of today’s Zacks #1 Rank stocks here.