For Immediate Release
Chicago, IL – June 4, 2026 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Dell Technologies DELL, Apple AAPL, Super Micro Computer SMCI and Hewlett Packard Enterprise HPE.
Here are highlights from Thursday’s Analyst Blog:
DELL Jumps +37% Post-Q1 Earnings: Here's Why the Stock Is Still a Buy
Dell Technologies shares have jumped 37.3% post the first quarter fiscal 2027 results, which the company reported on May 28. Non-GAAP earnings of $4.86 per share comfortably beat the Zacks Consensus Estimate by 59.9% and surged from $1.55 reported in the year-ago quarter. Revenues jumped 88% year over year to $43.84 billion and topped the consensus mark by 23.62%. Quarterly results reflected broad-based demand across the portfolio, with AI infrastructure remaining the standout. In the reported quarter, Dell Technologies booked $24.4 billion in AI orders, highlighting customers’ urgency to secure supply for large-scale deployments.
The company generated a record $4.1 billion of operating cash flow and returned $2.1 billion to shareholders through buybacks and dividends. Dell Technologies ended the fiscal first quarter with $14.1 billion in cash and investments. DELL management now expects fiscal 2027 guidance between $165 billion and $169 billion (up 47% year over year at the mid-point) and guided to non-GAAP earnings of $17.90 per share (plus or minus 25 cents). The company also increased its fiscal 2027 AI-optimized server revenue expectation to roughly $60 billion, signaling confidence in continued AI infrastructure momentum through the year. Is that enough for investors to accumulate DELL Shares? Let’s find out.
DELL Shares Ride on AI Prospects
Dell Technologies’ prospects ride on strong AI infrastructure demand, broad-based growth beyond AI servers, enterprise refresh cycles and data-center modernization. Year to date (YTD), DELL shares have outperformed the broader Zacks Computer and Technology sector, as well as peers like Apple, Super Micro Computer and Hewlett Packard Enterprise. The DELL stock has jumped 245.8% YTD, while shares of Hewlett Packard Enterprise, Apple and Super Micro Computer have returned 133.7%, 71.4% and 15.9%, respectively.
Dell Technologies is benefiting from accelerating AI infrastructure demand. The company booked $24.4 billion of AI orders in the fiscal first quarter and generated $16.1 billion of AI server revenue. The company exited the quarter with a record $51.3 billion AI backlog. Management noted that demand continues to exceed supply and that its AI pipeline remains multiples of backlog, providing significant revenue visibility. Dell Technologies fiscal 2027 AI server revenue outlook of $60 billion suggests approximately 2.4 times year-over-year growth.
DELL’s AI infrastructure solutions are gaining traction among enterprises, sovereign entities and next-generation cloud providers, with the company serving more than 5,000 AI customers globally. Dell Technologies has become a key supplier of AI-optimized servers and data center solutions, benefiting from surging enterprise demand for AI training and inference workloads. Dell Technologies’ partnerships with leading chipmakers such as NVIDIA allow it to deliver high-performance AI systems that enterprises increasingly need to modernize operations and deploy generative AI applications.
The company’s integrated rack-scale systems and data center solutions allow customers to deploy AI clusters efficiently, while managing the total cost of ownership. These capabilities are helping Dell Technologies capture opportunities as organizations scale AI workloads across industries.
DELL’s Prospects Suffer from Competition, Supply Constraints
Although expanding AI infrastructure footprint benefits DELL’s prospects, management repeatedly cited memory (DRAM and NAND) constraints as the primary supply bottleneck and acknowledged that demand continues to exceed supply.
Dell Technologies’ gross margin rate declined to 18.1% because of the mix shift toward lower margin AI servers. Management stated AI server profitability remains in the mid-single-digit operating margin range, which is below storage margins. As AI becomes a larger percentage of revenue, margin expansion may be more difficult than revenue growth suggests.
DELL continues to face stiff competition from Apple and HP in the PC market as well as Hewlett Packard Enterprise and Super Micro Computer in the AI infrastructure space.
DELL Shares Are Trading at a Premium
Dell Technologies shares are trading at a premium as suggested by a Value Score of C.
In terms of the forward 12-month price/earnings (P/E), DELL is trading at 31.74X, lower than the broader sector’s 26.69X. However, Dell Technologies is trading at a discount against Apple shares, which are currently trading at 33.96X but at a significant premium to Super Micro Computer’s 16.16X and Hewlett Packard Enterprise’s 21.82X.
Technically, Dell Technologies is trading above the 50-day and 200-day moving averages, indicating a bullish trend.
Conclusion
Dell Technologies’ prospects ride on strong AI infrastructure demand and impressive liquidity position. An expanding clientele across neoclouds, sovereigns and enterprise customers bodes well for the company’s top-line growth. The company’s disciplined approach toward capital spending is a key catalyst. These drivers justify a premium valuation.
DELL currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.
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/performance for information about the performance numbers displayed in this press release.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Apple Inc. (AAPL) : Free Stock Analysis Report
Dell Technologies Inc. (DELL) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
