Dell Technologies (DELL) has seen its shares rise 23% year-to-date, significantly outperforming the Zacks Computer and Technology sector’s 14.6% increase, despite the Zacks Computer – Micro Computers industry experiencing a 7.6% decline. This growth is attributed to Dell’s expanding AI portfolio, a strong partner base, and notable demand for its AI servers.
In Q1 of fiscal 2026, Dell reported record orders of $12.1 billion and a backlog of $14.4 billion, with projected AI-related revenues exceeding $15 billion for 2025. For Q2 of fiscal 2026, Dell expects revenues between $28.5 billion and $29.5 billion, representing a forecasted 16% year-over-year growth. The non-GAAP earnings are projected at $2.25 per share, indicating 15% growth.
Despite these positive indicators, Dell faces stiff competition, particularly from Hewlett-Packard in the AI server market. As a result of challenging macroeconomic conditions and competitive pressures, Dell Technologies holds a Zacks Rank #4 (Sell), suggesting investors should be cautious about investing in the stock at this time.
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