DELL Gains Traction in AI PC Market: Can It Drive CSG Revenue?

Dell Technologies DELL is benefiting from its leadership in the AI PC market, which is playing an important role in driving Client Solutions Group (CSG) revenue growth. In the second quarter of fiscal 2026, CSG revenues were $12.50 billion, up 1% year over year.As the top commercial AI PC brand over the past year, Dell Technologies has established itself as a leader in providing new, AI-optimized computing solutions. Its simplified AI PC portfolio, which includes the Dell Pro and Dell Pro Max, delivers notable performance improvements. Users can expect up to 67% longer battery life, 92% better graphics and 36% enhanced CPU performance compared to earlier models. These upgrades meet the increasing need for professional-grade productivity and AI workloads. The company is leveraging the ongoing PC refresh cycle, driven by the Windows 10 end-of-life transition, to capture market share and expand its product offerings, including AI-ready devices. A key driver of Dell Technologies’ momentum in the AI PC market is its focus on small and medium businesses. These businesses have shown strong demand growth. In the second quarter of fiscal 2026, Dell Technologies’ launched a new business notebook aimed at the entry-level commercial PC market. This move highlights its commitment to meeting the needs of this segment.A robust partner base that includes industry leaders such as NVDA, AMD, and Intel has been a major growth driver.DELL Suffers From Stiff CompetitionDell Technologies suffers from stiff competition in the PC market from the likes of HP HPQ and Apple AAPL. HPQ is benefiting from a sustained focus on launching new and innovative products. The growing interest in generative AI-enabled PCs, along with Windows 11 upgrades and a probable PC refreshment cycle, is likely to drive fresh demand for PCs in 2025 and beyond.The growing interest in generative AI-enabled PCs might give a fresh boost to HP’s PC demand in the years ahead. The company forecasted that 40-60% of all PCs will be AI PCs in the next three years. To make the most of the growing opportunities in this category, HP has launched several AI PCs this year and plans to continue to expand its AI PC portfolio.Apple’s Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In the third quarter of fiscal 2025, Mac sales of $8.05 billion increased 14.8% year over year and accounted for 8.6% of total sales. Solid demand for the M4 MacBook Air drove Apple’s top-line growth. Apple saw double-digit sales growth in emerging markets and double-digit growth in both the number of upgraders and new Mac customers.DELL’s Share Price Performance, Valuation, and EstimatesDELL’s shares have gained 8.8% year to date, underperforming the broader Zacks Computer & Technology sector’s return of 18.3%. However, it has outperformed the Computer - Micro Computers industry, which has declined 8.9% in the same time frame.DELL Stock PerformanceImage Source: Zacks Investment ResearchDELL shares are cheap, with a forward 12-month Price/Sales of 0.76X compared with the Computer & Technology sector’s 6.87X. DELL has a Value Score of A.Price/Sales (F12M)Image Source: Zacks Investment ResearchThe consensus mark for fiscal 2026 earnings is pegged at $9.54 per share, which has increased 0.95% in the past 30 days. This suggests 17.20% year-over-year growth.Dell Technologies Inc. Price and Consensus Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. QuoteDELL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.See our %%CTA_TEXT%% report – free today!7 Best Stocks for the Next 30 DaysWant 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 Apple Inc. (AAPL): Free Stock Analysis Report HP Inc. (HPQ): Free Stock Analysis Report Dell Technologies Inc. (DELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks