Dell Technologies DELL is rapidly expanding its AI data center footprint as surging demand for AI infrastructure continues to reshape the company’s growth trajectory. In fiscal 2026, Dell recorded $64.1 billion in AI orders and shipped $25.2 billion worth of AI servers. DELL exited fiscal 2026 with a record $43 billion AI backlog, reflecting strong momentum in enterprise and hyperscale AI deployments.
Dell’s AI-optimized server business has emerged as a major revenue driver. In the fourth quarter of 2026 alone, the company booked $34.1 billion in AI orders and shipped $9.5 billion in AI servers. The company expects AI revenues to nearly double to approximately $50 billion in fiscal 2027. Dell now serves more than 4,000 AI customers across enterprises, sovereign entities and cloud providers, highlighting broad-based adoption of AI infrastructure solutions.
An expanding enterprise clientele is positive for DELL’s prospects. Hudson River Trading has launched a new AI research data center at Lefdal Mine Data Centers, powered by Dell AI Factory infrastructure, including direct liquid-cooled Dell PowerEdge XE9685L servers equipped with AMD EPYC processors and NVIDIA HGX B200 systems.
Dell’s engineering expertise, deployment speed, liquid-cooling capabilities and end-to-end lifecycle services continue to strengthen its position in the AI infrastructure market. Combined with its strong supply-chain management and growing enterprise AI adoption, Dell appears well-positioned to sustain long-term revenue growth as AI data center investments accelerate globally.
DELL Faces Stiff Competition in the AI Server Business
Super Micro Computer SMCI is a strong competitor to DELL in AI servers, driven by fast innovation and advanced engineering. SMCI’s rack-scale systems and DCBBS solutions help customers deploy AI data centers quickly and efficiently. The company benefits from strong demand for GPU-based servers and close partnerships with NVIDIA and AMD. Its global manufacturing expansion strengthens supply capabilities, though margins face pressure from rising costs and customer concentration.
Hewlett Packard Enterprise HPE competes with Dell Technologies through its enterprise-focused AI strategy and GreenLake cloud platform. HPE offers end-to-end solutions combining servers, storage, networking and software, strengthened by the Juniper Networks acquisition. The company is benefiting from strong enterprise AI demand and a growing backlog. Its AI Factory approach and flexible consumption model set it apart, while strong networking capabilities support AI workloads, making it a stable competitor in enterprise and sovereign AI markets.
DELL’s Share Price Performance, Valuation & Estimates
Shares of Dell Technologies have appreciated 100.8% year to date, outperforming the broader Zacks Computer & Technology sector and the Zacks Computer - Micro Computers industry’s increase of 16.6% and 12.9%, respectively.
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From a valuation standpoint, its forward price-to-earnings ratio of 18.96 is significantly lower than the industry’s average of 31.46. The company carries a Value Score of B.
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The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $12.84 per share, increasing 2 cents over the past 30 days. This suggests 24.6% year-over-year growth.
Dell Technologies Inc. Price and Consensus
Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote
DELL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).