Dell Technologies (DELL) shares have surged 213.2% year-to-date (YTD), attributed to significant growth in AI infrastructure. In Q1 FY2027, AI server orders reached $24.4 billion, with revenues hitting $16.1 billion — a 757% increase year-over-year. The company anticipates total AI server revenues of $60 billion for FY2027, nearly 2.4 times the previous year’s revenue. Dell’s overall revenue guidance for fiscal 2027 is set between $165 billion and $169 billion, reflecting a 47% increase year-over-year growth at the mid-point.
As of now, Dell has over 5,000 customers, including hyperscalers and enterprises, demonstrating robust demand for AI-optimized servers. The company’s traditional server business has also seen a 92% growth year-over-year in the same quarter, while total Infrastructure Solutions Group revenues increased 181%. However, Dell faces competition in the AI infrastructure space from major players like HP and Apple and is experiencing supply constraints due to memory shortages.
In terms of stock performance, DELL is trading at a premium with a forward price-to-sales ratio of 1.45, higher than competitors like Super Micro Computer at 0.32. Despite challenges, including a declining gross margin of 18.1% as lower-margin AI servers gain a larger share of business, Dell’s comprehensive growth strategy and expanding client base position it favorably in the market.
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