Dell Technologies and ASML Present Diverging AI Investment Opportunities Amid Market Shifts

Dell Technologies shattered expectations with record Q2 revenue of $29.8 billion, marking 19% year-over-year growth. The company's AI server business emerged as the standout performer, generating $8.2 billion in quarterly revenue with an $11.7 billion backlog. Despite raising full-year guidance to 12% revenue growth and 17% earnings growth for fiscal 2026, shares fell 9% post-earnings—a potential market misjudgment given Dell's 13x forward P/E valuation.

ASML tells a different story, with shares down 30% from July 2024 peaks due to China export restrictions. The semiconductor equipment Maker now trades at historically low multiples, presenting a contrarian opportunity. Both companies underscore the bifurcated nature of AI infrastructure investments—where hardware demand remains robust but geopolitical factors create valuation disparities.