For Immediate Release
Chicago, IL – July 23, 2026 – Today, Zacks Investment Ideas feature highlights Dell Technologies DELL, NVIDIA NVDA, Google GOOGL, Palantir PLTR, ServiceNow NOW and Super Micro Computer SMCI,
Dell: AI Infrastructure Drives Massive Growth
Zacks Rank #1 (Strong Buy) stock Dell Technologies is a leading provider of servers, storage, and PCs. The Round Rock, Texas-based company is a leader in the traditional PC space. However, over the past few years, Dell has transformed into a primary enterprise hardware vendor providing the "picks and shovels" needed for the massive global AI infrastructure buildout. Dell operates in more than 150 countries and reported over $100 billion in annual revenue last year.
Dell: An AI Infrastructure Juggernaut
Dell's fastest-growing business is its AI-optimized server segment, which is experiencing mind-boggling year-over-year growth of more than 700%! Dell's AI servers are ultra-high-performance computers designed to process immense quantities of information at once. Unlike standard computers that can only handle one or two tasks simultaneously, these specialized servers can handle millions of complex math problems simultaneously. These AI servers perform the two most important AI tasks: training (feeding the AI massive quantities of data) and inference (hosting the AI so customers can use it).
Dell separates itself from competitors through its "plug-and-play" service. Instead of selling individual products to customers, Dell combines the chips, software, and power systems so clients receive a complete AI rack ready to use immediately. Dell's expanding ecosystem supports a fuller stack for customers that want to run AI on infrastructure they control. Management recently highlighted partners including NVIDIA, Google Cloud, OpenAI, Palantir, ServiceNow and others.
AI Buildout Not Slowing
Tuesday, Super Micro Computer, a direct Dell competitor, trounced earnings and guided for gross margins to nearly double from ~8.8% to 15-17%. The news suggests that Dell, which has much higher margins than SMCI, will be able to increase those margins further in the coming quarters. Separately, Dell customer OpenAI raised its projected compute spending through 2030 to ~$750B from $600B earlier this year.
Dell's Scorching-Hot Growth
Dell is growing earnings at a rapid clip. Zacks Consensus Estimates suggest that the company's EPS will more than double in the current quarter and will grow ~66% in 2026.
Meanwhile, Dell has proven an ability to deliver positive EPS surprises in recent quarters. For instance, last quarter, Dell beat consensus estimates by a juicy 59.87%.
Dell Sets Up High Tight Flag
DELL shares are set up in a classic high tight flag pattern. An HTF occurs when a stock doubles in 8 weeks or less then corrects no more than 20%.
Bottom Line
Dell has successfully evolved from a traditional PC manufacturer to a hardware leader in the global AI buildout. With massive earnings growth, expanding partnerships, and a unique "plug-and-play" service, Dell's bullish trajectory is likely to continue.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report
ServiceNow, Inc. (NOW): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Palantir Technologies Inc. (PLTR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).