Dell Technologies is experiencing a significant boost in its financial performance, largely attributed to the escalating demand for AI infrastructure. In the third quarter of fiscal 2026, revenues from its Infrastructure Solutions Group (ISG) increased by 24% year-over-year, totaling $14.10 billion. This marks the seventh consecutive quarter of double-digit revenue growth for the company.
A primary driver behind this success has been the remarkable surge in orders for AI servers. In this latest quarter, Dell secured $12.3 billion in AI server orders, pushing its year-to-date total to $30 billion. The company also shipped $5.6 billion worth of AI servers during the fiscal third quarter, culminating in a record backlog of $18.4 billion in AI server orders. This backlog underscores the robust and ongoing demand for Dell’s AI solutions, which cater to a diverse customer base that includes Neoclouds, Tier 2 cloud service providers, sovereign entities, and enterprises.
To further solidify its position in the AI infrastructure market, Dell Technologies announced a collaboration with IREN in November 2025. This partnership aims to deploy NVIDIA-powered, liquid-cooled AI infrastructure across North America, including Canada’s first Dell PowerEdge XE9712 cluster, equipped with NVIDIA GB300 NVL72. This initiative is designed to promote efficient and renewable-energy-driven AI innovation.
Despite its strong performance, Dell faces intense competition from rivals such as Hewlett-Packard Enterprise and Super Micro Computer. Both companies are actively expanding their presence in the AI infrastructure space. Hewlett-Packard Enterprise recently enhanced its partnership with NVIDIA, launching the AI Factory Lab in Grenoble, France, to better serve EU customers seeking greater control and autonomy over their AI infrastructure and data. Meanwhile, Super Micro Computer has enhanced its NVIDIA Blackwell portfolio by introducing new 4U and 2-U (OCP) liquid-cooled NVIDIA HGX B300 systems, which offer up to 144 GPUs per rack and improved liquid cooling to maximize AI performance and efficiency.
On the financial front, Dell’s stock has seen a modest increase of 3.6% over the past six months, lagging behind the broader Zacks Computer & Technology sector, which has returned 20.4%, and the Zacks Computer – Micro Computers industry, which has risen by 35%. Currently, Dell shares are priced attractively, carrying a forward 12-month Price/Sales ratio of 0.69X, compared to the sector average of 6.62X, earning the company a Value Score of A.
The Zacks Consensus Estimate for Dell’s earnings in fiscal 2026 stands at $9.89 per share, reflecting a 3.56% increase over the past 30 days and indicating a promising 21.50% year-over-year growth. Dell currently holds a Zacks Rank of #3 (Hold), suggesting a stable outlook amid competitive pressures.
Looking ahead, Dell Technologies is poised to ship approximately $9.4 billion worth of AI servers in the fiscal fourth quarter of 2026. For the entire fiscal year, its AI server shipments are projected to reach $25 billion, representing an impressive 150% growth compared to the previous year. As the demand for AI solutions continues to flourish, Dell’s strategic initiatives in the technology sector position it as a key player, though it will need to navigate ongoing competition to maintain its momentum.
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