DELL

Dell Technologies Inc.’s DELL shares have soared 291% year to date, driven by a rapid increase in artificial intelligence (AI) spending and strong demand across its server and infrastructure portfolio. The company’s latest strong quarterly results have further strengthened its position in the AI ecosystem, raising a potent question for investors: Is Dell the next big AI investment this year? Let’s find out – Dell’s Infrastructure Solutions Group (ISG) posted record revenues of $31.8 billion in the fiscal second quarter of 2027, up 89% year over year, as mentioned in the company’s Sept. 1 press release. Within that, AI-optimized servers, Traditional Servers & Networking, and Storage reported encouraging numbers indicating that Dell isn’t dependent on just one AI product for growth; instead, it is seeing rising demand across its broader infrastructure portfolio. The standout figure was AI-optimized server revenue, which reached $16.4 billion in the fiscal second quarter, a 100% year-over-year increase. Dell also booked a record $60.9 billion in AI-server orders and ended the quarter with a staggering $95 billion backlog. All this indicates that demand for Dell’s AI infrastructure remains strong and highlights its strong position in meeting the growing server needs to run AI workloads. Even more importantly, Dell has raised its full-year guidance. For the fiscal year 2027, Dell increased its revenue outlook from $167 billion to $192 billion, representing a $25 billion increase. The AI-optimized server revenue outlook was raised from $60 billion to $74 billion, representing 200% year-over-year growth. Additionally, Dell raised its non-GAAP earnings per share (EPS) guidance for fiscal 2027 from $17.90 to $25.50, up 148% year over year. The company also reported non-GAAP EPS of $7.04 in the fiscal second quarter, up 203% year over year. These results show that Dell isn’t just experiencing strong sales growth, but is also converting that growth into higher profits (read more: DELL Q2 Earnings Beat Estimates, Strong AI Demand Aids Revenue Growth). Dell’s fiscal second-quarter 2027 results and full-year guidance indicate that it has emerged as a strong AI infrastructure play, supported by robust demand for AI servers and a growing backlog. Now, with AI infrastructure spending continuing to increase, Dell appears well-poised to capitalize on this long-term trend. Accelerating revenues and earnings growth make DELL stock an attractive buy for investors willing to make the most of the long-term AI growth story. From a valuation perspective, Dell’s forward price-to-earnings (P/E) ratio of 25.51 is below the Computer - Micro Computers industry’s 34.87, indicating that investors will be burning a smaller hole in their pockets to acquire a growing business. Image Source: Zacks Investment Research For now, the company has a Zacks Rank #1 (Strong Buy), and its expected earnings growth rate for the current year is 87.4%. The Zacks Consensus Estimate of $19.21 for DELL’s EPS is up 73.5% year over year. You can see the complete list of today’s Zacks Rank #1 stocks here. Image Source: Zacks Investment Research Want 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 This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dell Technologies Inc. (NYSE:DELL) delivered another strong quarter, with AI infrastructure demand pushing both results and expectations higher. Second-quarter revenue rose 58% year over year to a record $46.97 billion, beating analysts’ $44.9 billion estimate, while adjusted EPS of $7.04 significantly exceeded the $4.91 consensus. The biggest catalyst was Dell’s AI-optimized server business, where revenue doubled to $16.4 billion. The segment ended the quarter with a record $95 billion backlog, giving Dell substantial visibility into future demand. The company also raised its fiscal 2027 AI-server revenue forecast to $74 billion from $60 billion and increased its overall revenue outlook to $192 billion from $167 billion. Adjusted EPS guidance was raised to $25.50 from $17.90. AI infrastructure demand is proving stronger and broader than expected. Dell Technologies Inc. (NYSE:DELL) is no longer relying solely on a handful of hyperscalers. Management said demand is broadening across neoclouds, sovereign customers and enterprises, with its AI customer count surpassing 6,500. More than $130 billion in AI-server orders were booked over the past 12 months, suggesting the current AI infrastructure cycle could have considerably more room to run. The $95 billion backlog provides unusually strong revenue visibility. Dell’s AI-server backlog is more than five times the $16.4 billion of AI-server revenue generated in the latest quarter. If customers continue to deploy AI infrastructure at the expected pace, Dell has a substantial pipeline that could support growth well beyond the current quarter. Growth is spreading beyond AI-optimized systems. Traditional servers and networking revenue more than doubled to $10.53 billion, partly reflecting demand for infrastructure supporting agentic AI workloads. This suggests AI investment is creating a broader infrastructure spending cycle rather than benefiting only high-end GPU servers. The PC business is also showing signs of improvement. Dell Technologies Inc. (NYSE:DELL)'s commercial PC revenue increased 22%, while management said PC-unit revenue is growing at its fastest pace in five years. This gives Dell another source of growth while the AI infrastructure business remains the primary driver. Dell is demonstrating pricing power despite component inflation. Memory shortages have increased costs across the hardware industry, but Dell has been able to raise prices to protect margins. That is important because rapidly growing revenue would be less valuable to shareholders if component costs were simultaneously compressing profitability. Expectations are now extremely high. Dell Technologies Inc. (NYSE:DELL) shares have already risen sharply this year, and Barron's noted that the stock was trading at roughly 20.3 times forward earnings, compared with a five-year average of 10.9 times. The latest results were excellent, but the valuation means investors may increasingly demand exceptional growth rather than simply good results. AI growth will eventually decelerate. Dell's AI-server revenue is growing at extraordinary rates, but sustaining a doubling of revenue becomes increasingly difficult as the business gets larger. Even if AI spending remains strong, a normalization in growth could pressure the stock if investors have priced in continued acceleration. Dell Technologies Inc. (NYSE:DELL) remains exposed to the capital-spending cycle of AI customers. Much of the current opportunity depends on cloud providers, neoclouds, sovereign entities and enterprises continuing to spend heavily on data-center infrastructure. If customers slow or postpone projects because of financing constraints, changing AI economics, or concerns about returns on AI investment, Dell's order pipeline could weaken. Supply constraints remain a risk. The broader AI hardware industry continues to face shortages in areas such as memory. Dell has so far managed to offset higher costs through pricing, but persistent component shortages could still pressure margins or limit how quickly the company can fulfill its large backlog. Reuters also noted that Nvidia has warned memory shortages could constrain industry growth. Dell Technologies Inc. (NYSE:DELL)'s strong AI-server demand, record backlog, and repeated guidance increases support a bullish outlook. The company appears well positioned to benefit from continued AI infrastructure spending. The main risk is valuation, as the stock now reflects high expectations for sustained AI growth. Dell’s fundamentals remain strong, but future upside will depend on whether it can continue exceeding increasingly demanding market expectations. While we acknowledge the potential of DELL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: ArcelorMittal (MT)'s Italian Exit Raises Questions About Growth and Capital Discipline and A Bigger Geothermal Bet: What Google’s Fervo Deal Could Mean Disclosure: None. This article is originally published at Insider Monkey.

Hewlett Packard Enterprise (NYSE:HPE), an enterprise server, networking, storage, and AI infrastructure provider, closed at $54.44, up 5.03%. Investors focused on supply bottlenecks after a strong earnings beat and raised guidance, while watching AI server demand and the next earnings call. Trading volume reached 68.4M shares, coming in about 208% above its three-month average of 22.2M shares. Hewlett Packard Enterprise IPO'd in 2015 and has grown 466% since going public. The S&P 500 (SNPINDEX:^GSPC) rose 1.07% to 7,748, and the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.40% to 26,584. Among enterprise hardware, networking, storage, and hybrid cloud infrastructure peers, Dell Technologies (NYSE:DELL) closed at $515.94, up 4.82%, while Cisco Systems (NASDAQ:CSCO) closed at $108.61, down 0.78%, showing mixed trading in AI infrastructure names. If investors are worried that the AI boom might be short-lived, HPE's Q2 results show it may not stall anytime soon. HPE soared past analysts' expectations, with sales and adjusted earnings per share rising 34% and 66%. The company also raised 2026 and 2027 sales growth guidance to between 34% and 37%, and 13% and 17%, respectively. HPE's networking unit stole the show, growing revenue by 75%, headlined by its data center networking unit up 112%, routing business soaring 270%, and security segment spiking 76%. Meanwhile, in the company's Cloud and AI unit, its server business rose 35% -- impressive growth for the company's largest business segment. Antonio Neri, president and CEO of HPE, explained, "AI is becoming a multi-year growth driver for HPE, and our differentiated portfolio positions us to capture that opportunity at scale." Trading at 14 times forward adjusted earnings, HPE could be a reasonably priced growth stock for investors who believe this growth reacceleration is here to stay for a few years or more. Before you buy stock in Hewlett Packard Enterprise, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hewlett Packard Enterprise wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $446,157!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,377,357!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 3, 2026. Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems and Hewlett Packard Enterprise. The Motley Fool has a disclosure policy. Stock Market Today, Sept. 3: HPE Jumps 5%, Raises Fiscal Outlook on Record AI Server Demand was originally published by The Motley Fool

Dell booked $60.9 billion in AI server orders in one quarter, yet shares fell 7% as investors questioned whether rapid scaling can sustain margins. Dell's single-quarter order intake rivals Super Micro's entire fiscal 2026 bookings and dwarfs HPE's cumulative $16 billion in AI systems bookings. ISG operating margin nearly doubled to 15% while free cash flow fell 47%, exposing the working capital cost of scaling AI hardware. Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now. The report is free. Enter your email and see if any of your stocks made the cut. Dell (NYSE:DELL) just reported one of the largest single-quarter guidance raises in enterprise hardware history, and the number under the microscope is the one Jeff Clarke put front and center: $60.9 billion in AI server orders booked in a single quarter, with an ending AI backlog of $95 billion. Dell Technologies also said its pipeline is still larger than its backlog, a claim worth interrogating rather than repeating. The load-bearing question for investors is whether an AI server business scaling this fast can also carry acceptable margins, because assembling NVIDIA-powered racks has historically been thin-margin work compared with Dell's storage and traditional server portfolio. Shares closed down 6.8% to $425 despite the beat, suggesting the market is already asking the same question. Dell recognized $16.4 billion in AI-optimized server revenue, roughly double the prior year, and lifted full-year revenue guidance by $25 billion to $192 billion. The AI server outlook now sits at $74 billion for the year, up 200% year over year. Non-GAAP EPS came in at $7.04 against a $4.8994 consensus, per Dell's 8-K exhibit. The single-quarter order intake sits awkwardly next to Super Micro Computer (NASDAQ:SMCI), which booked over $60 billion in new orders across all of fiscal 2026. Dell captured a similar figure in three months. Free Report, Just Released Did Any of Your Stocks Make the Top 10 List? It is an uncomfortable question, and there is now an answer to it. 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. Open your account and look at what you own. Some of it you bought for a reason you could still defend today. Some of it you bought years ago for a reason you can no longer remember. The report is free. Put the ten next to what you own and find out which is which. Enter Your Email and See the Ten → Free from 24/7 Wall St. It lands in your inbox. Hewlett Packard Enterprise (NYSE:HPE) offers another useful contrast, with cumulative AI systems bookings of $16.4 billion reported through its fiscal Q2, roughly what Dell just recognized in a single quarter. HPE's Juniper-driven networking angle matters for its own thesis, but the raw compute pipeline is not a fair comparison. Speaking on CNBC on September 2, 2026, Dell's COO framed the momentum this way: "AI demand is still accelerating, with a record $60.9 billion in orders in our fiscal Q2 and a record $95 billion backlog." Dell's CEO said, "These aren't just commodity server deployments." That claim is testable, and the evidence partly cooperates. Infrastructure Solutions Group operating margin expanded to 15.0% from 8.8% year over year, with operating income up 225%. Mix and pricing discipline are genuinely improving as volume increases. Management said some engagements require upwards of 50 unique designs across power, cooling, and data center layout (the same non-chip suppliers we profiled in a free report on the AI buildout, here), and Dell shipped the first rack systems on the NVIDIA Vera Rubin platform. Its AI customer count exceeds 6,500, with 3,300 added in the last three quarters. Concentration remains the harder question. A headline customer count says little about where the dollars actually sit, and sovereign and neocloud deals in this market routinely run into the billions each. Broadening demand into enterprise is a claim management is making, and one that will show up cleanly in ISG margin durability over the next two quarters or not at all. NVIDIA (NASDAQ:NVDA) benefits upstream from every Dell rack shipped. Jensen Huang referenced Dell systems directly on his fiscal Q2 call, and NVIDIA's Vera Rubin production shipments began earlier in August. Dell functions as one of NVIDIA's most important enterprise distribution channels. The uncomfortable number sits below the top line. Free cash flow fell to $986 million, down 47.22% year over year, even as revenue set a record. Building this much hardware consumes inventory and supplier prepayments long before customers settle. NVIDIA warned on its own call about extreme pricing conditions in memory that are set to rise into next year. Dell is supply-constrained across both AI and traditional servers, which puts pressure on the mix story because DRAM and HBM inflation hits Dell's balance sheet before it flows through to customer pricing. Dell also carries negative shareholders' equity of $1.427 billion, a long-running feature of the post-EMC capital structure. It is not a solvency concern given cash generation, although it does constrain how aggressively management can lean into working capital without adding debt. Capital returns continued regardless. Dell sent $4.3 billion back to shareholders in the quarter, including 9.5 million shares repurchased at an average price of $401. Dell shares are up 240.76% year to date and 252.39% over the past year, which explains why a 43.69% EPS beat did not push the stock higher. Expectations had already caught up to the fundamentals. Super Micro is the more speculative alternative, up 25.42% year to date, with GAAP gross margin volatility Dell simply does not exhibit. HPE at 113.67% year-to-date carries a networking-led thesis for investors focused on Juniper synergies. Dell is the higher-quality operator among the three, with a better margin trajectory, deeper deployment capabilities, and a capital return program that its peers cannot match. Memory cost pressure and working capital drag are real, although the guidance raise suggests management is pricing them in. If you have cash sitting in your account right now, give this two minutes. 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Interested in Dell Technologies Inc.? Here are five stocks we like better. Record results were driven by AI demand: Fiscal Q2 revenue rose 58% year over year to $47 billion, while non-GAAP EPS surged 203% to $7.04. Infrastructure Solutions Group revenue jumped 89% to $31.8 billion, with $60.9 billion in AI orders and a $95 billion AI backlog. Growth broadened beyond AI servers: Traditional server and networking revenue more than doubled to $10.5 billion, storage revenue increased 26% to $4.9 billion, and Client Solutions Group revenue rose 20% to $15 billion. Dell raised its full-year outlook: The company now expects fiscal-year revenue of $192 billion and non-GAAP EPS of $25.50, reflecting approximately 70% and 150% growth, respectively. Dell also returned a record $4.3 billion to shareholders during the quarter despite ongoing component supply constraints. AI Data Centers Are Splitting Winners From Pretenders in Infrastructure Stocks Dell Technologies (NYSE:DELL) reported record fiscal 2027 second-quarter revenue and earnings, driven by accelerating demand for AI servers, traditional data-center infrastructure, storage and commercial PCs. The company also raised its full-year outlook, citing momentum across each of its major business lines. Revenue rose 58% year over year to $47 billion, while diluted non-GAAP earnings per share increased 203% to a record $7.04, according to Vice Chairman and Chief Operating Officer Jeff Clarke. Non-GAAP operating income grew 160% to $5.9 billion, and operating margin reached 12.6%. → OneMain’s Yield Comes With a Catch 5 Tech Stocks Holding Their Ground Through the AI Trade Pullback “Customers no longer see IT environments simply as cost centers, but as value drivers that enable growth, productivity, and competitive advantage,” Clarke said, pointing to spending on infrastructure modernization, AI adoption and client-device refreshes. Dell’s Infrastructure Solutions Group, or ISG, generated record revenue of $31.8 billion, up 89% from a year earlier. The segment delivered operating income of $4.8 billion and a 15% operating margin. → Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Chips & Clips: Memory Tariffs Rewire Tech Supply Chains AI server demand was a central driver. Dell booked $60.9 billion in AI orders during the quarter and recognized $16.4 billion in AI server revenue. It ended the period with $95 billion in AI backlog. Clarke said Dell’s AI pipeline continued to grow sequentially and remained multiples of its backlog, even after the company converted $131.7 billion into orders during the past 12 months. The company said its AI infrastructure customer count surpassed 6,500. Clarke said demand was broadening across neocloud providers, sovereign customers and enterprises, while deployments increasingly require engineering, design and installation expertise related to performance, power, cooling and data-center configurations. → Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Dell also said it became the first company to ship rack systems engineered on NVIDIA’s Vera Rubin platform. During the question-and-answer session, Clarke said enterprise participation in Dell’s AI infrastructure business continued to increase. The company added 3,300 Dell AI Factory customers in the past three quarters, after taking eight quarters to reach its first 3,200 customers. He said enterprise customer growth, repeat buyers and enterprise revenue all increased sequentially and year over year. Traditional server and networking revenue increased 122% to $10.5 billion, with demand outpacing available supply. Clarke attributed the growth primarily to existing enterprise customers refreshing older infrastructure, consolidating data centers and addressing security and resiliency requirements. He said Dell still has 1.2 million installed assets using 14th-generation servers or older. The company expects replacement demand to continue as customers move to newer systems with higher processor core counts, more memory and additional storage capacity. Clarke said Dell’s 17th-generation servers can offer consolidation ratios of six to eight older systems to one new system, while 18th-generation servers expected to begin shipping the following month could offer ratios of 12 to 14 to one. Clarke also cited emerging demand for CPU-based capacity supporting AI and agentic workloads. Dell said it gained more than 10 points of traditional server share over the past two quarters and expects further share gains in the current quarter. Storage revenue rose 26% to $4.9 billion. Dell said demand for its Dell IP storage portfolio continued to exceed market growth for a sixth consecutive quarter. The company reported growth across PowerFlex, PowerStore, PowerProtect and PowerVault, while its unstructured-storage offerings, including PowerScale and ObjectScale, also expanded. Clarke said data growth, requirements to store and protect information, and AI-related data-management needs were supporting storage demand. He added that Dell’s Project Lightning parallel file system remained in beta with several customers and was being evaluated in competitive opportunities. Dell’s Client Solutions Group, or CSG, posted revenue of $15 billion, up 20%. Commercial revenue increased 22% to $13.2 billion, marking the eighth consecutive quarter of growth, while consumer revenue rose 7% to $1.8 billion. Chief Financial Officer David Kennedy said CSG operating income was $1.1 billion, or 7.6% of revenue, supported by pricing discipline and greater scale. Dell said large enterprise customers were refreshing their PC installations, while some more cost-sensitive customers were extending replacement cycles, increasing the number of older devices in the installed base. The company generated $2.2 billion in cash flow from operations and $8.1 billion in adjusted free cash flow during the quarter. It returned a record $4.3 billion to shareholders, including repurchases of 9.5 million shares at an average price of $401 per share and a dividend of about $0.63 per share. Dell ended the quarter with $14.2 billion in cash and investments and a core leverage ratio of 0.8 times. Clarke said supply remains constrained across numerous components, including DRAM, NAND, certain CPUs, disk drives, optical products and other parts. He said Dell has sought to optimize available components and shift supply toward infrastructure products, contributing to its increased second-half expectations. For the fiscal third quarter, Dell expects revenue of $49 billion at the midpoint, representing growth of roughly 80% year over year. ISG revenue is expected to grow about 145%, including approximately $19 billion in AI server revenue, while CSG revenue is projected to increase roughly 15%. Dell forecast third-quarter diluted non-GAAP EPS of $6.50 at the midpoint, up more than 150% from a year earlier. For the full fiscal year, Dell raised its revenue outlook by $25 billion to $192 billion at the midpoint, implying approximately 70% growth. The company expects diluted non-GAAP EPS of $25.50, up about 150%. The company projects ISG growth of roughly 120%, supported by AI server revenue of $74 billion, more than triple the prior-year level. Dell expects traditional server revenue to rise just over 100%, storage revenue to increase in the mid-teens and CSG revenue to grow in the mid-teens. It expects operating expenses to equal approximately 8% of revenue for the year, which Kennedy said would be the lowest rate in the company’s 42-year history. Dell Technologies Inc is a multinational technology company that designs, manufactures and sells a broad range of information technology products, solutions and services. Its offerings span client computing devices (consumer and commercial laptops and desktops), enterprise infrastructure (servers, storage systems and networking equipment), software and cloud infrastructure, and a variety of professional services such as IT consulting, deployment, managed services and financing solutions. The company serves organizations of all sizes as well as individual consumers, with products and services aimed at enabling digital transformation and modern IT environments. Founded by Michael Dell in 1984, the company grew from a direct-to-consumer PC business into a diversified IT provider through organic expansion and strategic acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dell Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

For the quarter ended July 2026, Dell Technologies (DELL) reported revenue of $46.97 billion, up 57.8% over the same period last year. EPS came in at $7.04, compared to $2.32 in the year-ago quarter. The reported revenue represents a surprise of +3.6% over the Zacks Consensus Estimate of $45.34 billion. With the consensus EPS estimate being $4.97, the EPS surprise was +41.65%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Dell Technologies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Infrastructure Solutions Group- Storage: $4.85 billion compared to the $4.26 billion average estimate based on four analysts. The reported number represents a change of +25.8% year over year. Net Revenue- Client Solutions Group- Consumer: $1.84 billion compared to the $1.93 billion average estimate based on four analysts. The reported number represents a change of +7% year over year. Net Revenue- Client Solutions Group- Commercial: $13.19 billion versus the four-analyst average estimate of $13.17 billion. The reported number represents a year-over-year change of +22.4%. Net Revenue- Client Solutions Group: $15.03 billion versus the four-analyst average estimate of $15.09 billion. The reported number represents a year-over-year change of +20.2%. Net Revenue- Infrastructure Solutions Group: $31.78 billion versus the four-analyst average estimate of $30.02 billion. The reported number represents a year-over-year change of +89.2%. Net Revenue- Infrastructure Solutions Group- Servers and networking: $26.93 billion versus the four-analyst average estimate of $25.76 billion. The reported number represents a year-over-year change of +108.1%. Net Revenue- Products: $41.11 billion versus the two-analyst average estimate of $36.73 billion. The reported number represents a year-over-year change of +71.8%. Net Revenue- Infrastructure Solutions Group- AI-optimized servers: $16.4 billion versus $16.27 billion estimated by two analysts on average. Net Revenue- Services: $5.86 billion compared to the $7.99 billion average estimate based on two analysts. The reported number represents a change of +0.3% year over year. Operating Income- Client Solutions Group: $1.14 billion versus the two-analyst average estimate of $988.72 million. Operating Income- Infrastructure Solutions Group: $4.78 billion compared to the $3.38 billion average estimate based on two analysts. View all Key Company Metrics for Dell Technologies here>>> Shares of Dell Technologies have returned +6.3% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want 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 This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dell (DELL) falls 4% into earnings despite a 266% YTD rally and a Strong Buy rating with a +6.2% positive earnings surprise indicator. Super Micro (SMCI) and HPE slip in sympathy, but their milder declines confirm Dell's selloff targets company-specific event risk, not sector weakness. October-quarter guidance matters more than the headline beat, with Dell's Infrastructure Solutions Group needing to clear a $3.38 billion operating income bar. Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor) The setup into Dell Technologies' (NYSE:DELL) fiscal second-quarter results is unusually bullish, and the stock is falling anyway. That gap between an unusually strong setup and a red stock is the story. The move locates today's selling in Dell's own event risk rather than in the AI hardware corner. Dell stock is down 4% to $437.81 in midday trading, coming off a run in which Dell stock was up 266% year to date through Monday's close. That places Dell against a broad-market backdrop that is only mildly softer. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.5% to $763.39. Meanwhile, Super Micro Computer (NASDAQ:SMCI) stock is down 1% to $36.74, and Hewlett Packard Enterprise (NYSE:HPE) stock is down 2% to $51.17. Dell's fade is running harder than either AI server peer, which points the selling at company-specific event risk. Just to give you a quick glance at the need-to-know data, the reported Dell consensus estimate calls for earnings of $4.95 per share, up 113.4% from the year-ago period, on revenue of $45.34 billion, up 52%. That consensus sits above Dell's own guide of $44 billion to $45 billion, so a straight beat means clearing a bar management already lifted. The business driver is Dell's Infrastructure Solutions Group and specifically its AI-optimized servers. Consensus looks for Infrastructure Solutions Group operating income of $3.38 billion this quarter against $1.47 billion a year ago. That line item is carrying the multiple. If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) In its most recent quarter, Dell reported non-GAAP earnings of $4.86 per share on revenue that rose 88% year over year, and Dell stock jumped 32% the following session. Management disclosed a $24.4 billion AI order backlog, framed a $60 billion AI-server opportunity, and guided full-year revenue to $165 billion to $169 billion. Super Micro and Hewlett Packard Enterprise are red alongside Dell, though both moves look mild against Dell's slide. CoreWeave (NASDAQ:CRWV) sits in the frame as the customer whose partnership repositioned Dell from a legacy hardware vendor into a supplier for frontier AI infrastructure. The iShares U.S. Technology ETF (NYSEARCA:IYW) is the sector fund covering this cohort, and the picks-and-shovels names powering the data-center buildout beyond the chipmakers are the subject of a free report we put together here. Several AI-linked names have beaten expectations this season and sold off anyway on anything short of perfection, so October-quarter guidance and any update to Dell's full-year range may matter more than the quarter itself. A global bond selloff has lifted the 10-year Treasury note yield to 4.8%, and the highest-multiple AI winners carry the most sensitivity to that. Today, some traders are focused on strong demand for Dell's AI-optimized servers, even as the DELL share price heads south. Dell stock trades at a forward P/E ratio of 26x. The average price target among 27 analysts is $510, and Wells Fargo (NYSE:WFC) raised its DELL stock price target to $545. Today's fade reads as pre-earnings de-risking and profit taking after a large prior run on a risk-off session. The setup rewards clean, above-consensus guidance more than a headline beat. Investors can watch for how Dell frames the October quarter and the full-year range against a consensus that already sits above management's prior guide. The Infrastructure Solutions Group operating income line has a $3.38 billion setup to clear. Ultimately, DELL shareholders should consider keeping their position sizes modest into an event where beating alone may not clear the bar. If you’ve saved over $1,000,000, this guide is for you. The last thing you want in retirement is to run out of money, you want your money to generate lasting income while you enjoy your life. Now you can learn the strategies wealthy retirees use to fund their retirement with The Definitive Guide to Retirement Income from Fisher Investments. Download the guide today! (sponsor) Contact [email protected] for any questions or corrections.