Dell Technologies Up 32% in a Month: Should Investors Buy the Stock?

Dell Technologies DELL shares have gained 32.2% in the past month, outperforming the broader Zacks Computer and Technology sector’s increase of 3.8%. The Zacks Computer - Micro Computers industry has surged 13.1% in the same time frame.DELL stock has also outperformed its peer, Hewlett-Packard Enterprise HPE, which is also expanding its footprint in the server space. In the third quarter of fiscal 2025, Hewlett Packard’s server segment sales increased 16% year over year and rose 21% sequentially to $4.94 billion, mainly due to strong demand for its AI servers and growth in server systems. Hewlett-Packard shares have rallied 6.7% in the past month.The outperformance can be attributed to Dell Technologies’ strong demand for AI servers driven by ongoing digital transformation and heightened interest in generative AI applications.The company’s leadership in AI-optimized servers is a key driver of growth. The company shipped $8.2 billion in AI servers in the second quarter of fiscal 2026. The AI-optimized server momentum saw a $5.6 billion increase in orders.  The company’s AI backlog of $11.7 billion exiting the second quarter of fiscal 2026 and a growing opportunity pipeline further underscore the sustained demand for its solutions.DELL Stock's PerformanceImage Source: Zacks Investment ResearchDell Benefits From Expanding PortfolioDell Technologies’ expanding portfolio has been a key catalyst. The company has achieved significant growth in AI-optimized server shipments, delivering $10 billion worth of these servers in the first half of fiscal 2026 alone. The company projects $20 billion in AI server shipments for fiscal 2026, highlighting its strong momentum in the AI infrastructure space.Further expanding its portfolio, in September 2025, Dell Technologies introduced the PowerEdge XR8720t, the industry’s first single-server solution designed to transform edge and telecom infrastructure. Built for Cloud RAN and Open RAN setups, it provides more than twice the processing power of earlier models. It supports up to 72 cores, 24 SFP28 ports and integrates Intel Xeon 6 SoC with vRAN Boost. With AI-ready features, a rugged modular design, and NEBS Level 3 compliance, the XR8720t simplifies operations, improves scalability and lowers the total cost of ownership for next-generation network and edge applications.Dell Technologies also introduced the PowerEdge XE7740 server, the first integrated system featuring Intel Gaudi 3 PCIe accelerators, delivering scalable, cost-efficient AI performance for enterprise workloads.DELL Benefits From Expanding ClienteleDELL is benefiting from an expanding partner base that includes Lowe’s Companies LOW, NVIDIA NVDA, Worley, Microsoft, Meta Platforms, Advanced Micro Devices and Imbue. In August 2025, Dell Technologies announced significant updates to its AI Data Platform, improving unstructured data ingestion, semantic retrieval and GPU-accelerated inferencing. With new Dell PowerEdge servers featuring NVIDIA RTX PRO 6000 Blackwell GPUs and Elastic integration, the platform allows businesses to scale generative AI with faster performance and turnkey deployment.In June 2025, Dell Technologies partnered with Lowe’s to enhance customer and associate experiences by deploying advanced AI and PC technologies. Using Dell AI Factory with NVIDIA and high-performance Dell devices, Lowe’s is optimizing inventory, improving asset protection and streamlining store operations across its network.Dell Technologies Offers Positive Q3 FY26 GuidanceDell Technologies’ innovative portfolio, expanding partner base and growing AI footprint are significant growth drivers.  For the third quarter of fiscal 2026, revenues are expected to be between $26.5 billion and $27.5 billion, with the mid-point of $27 billion suggesting 11% year-over-year growth.The Zacks Consensus Estimate for Dell Technologies’ third-quarter fiscal 2026 revenues is pegged at $27.13 billion, suggesting growth of 11.33% year over year.Non-GAAP earnings are expected to be $2.45 per share (+/- 10 cents), at the midpoint, indicating 11% growth year over year. The Zacks Consensus Estimate for earnings is pegged at $2.48 per share, which has remained unchanged over the past 30 days. This indicates year-over-year growth of 15.35%.Dell Technologies Inc. Price and Consensus Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. QuoteDELL Shares Trading CheapDell Technologies shares are cheap, as suggested by a Value Score of A.Dell Technologies’ stock is trading at a significant discount with a forward 12-month P/S of 0.99X compared with the Computer and Technology sector’s 6.92X.Price/Sales (F12M)Image Source: Zacks Investment ResearchWhat Should Investors Do With DELL Stock?Dell Technologies benefits from rising demand for AI-optimized servers and an expanding partner network. The company’s innovation in AI infrastructure and positive earnings outlook support long-term strength.DELL stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 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(DELL): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE): 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