Dell Technologies Capitalizes on AI Server Boom Amid Undervaluation
Dell Technologies, Inc. (DELL) is emerging as a dark horse in the AI infrastructure race, yet markets remain slow to price in its transformation. The legacy hardware Maker posted record Q2 FY2026 revenue while trading at a modest 16x forward P/E—a disconnect that may signal opportunity.
Its Infrastructure Solutions Group delivered a sixth straight quarter of double-digit growth, with total revenue surging 44% to $16.8 billion. Server and networking sales exploded 70% annually to nearly $13 billion, demonstrating traction in high-margin AI infrastructure.
The bullish thesis hinges on Dell's end-to-end AI portfolio, which spans from server racks to integrated solutions. Unlike niche players, the company is positioning itself as a one-stop shop for enterprise AI deployments—a strategy that could trigger valuation multiple expansion as adoption accelerates.
