From Nasdaq: 2025-05-13 13:03:00

Dell Technologies and Microsoft are key players in cloud computing, with DELL offering infrastructure solutions and services, while Microsoft’s Azure platform provides a range of cloud services, including AI capabilities. The global cloud computing market size is projected to grow, benefiting both companies.

In terms of performance, DELL saw a 22% increase in revenues in the fourth quarter of fiscal 2025, driven by demand for servers and networking, especially in AI. Microsoft’s cloud revenues grew by 21% in the same period, with strong demand for Azure and AI services contributing to its growth.

While both DELL and MSFT have seen fluctuations in their stock prices, Microsoft has outperformed DELL due to the strength of its AI business and Azure cloud infrastructure. Both companies have beaten earnings estimates, with Microsoft showing a higher average surprise percentage.

Looking ahead, Microsoft appears to have greater upside potential in the cloud computing market, with its strong AI-driven cloud growth and expanding enterprise adoption leading the way. With a Zacks Rank of #2 (Buy), Microsoft is considered a stronger investment opportunity compared to Dell, which has a Zacks Rank of #5 (Strong Sell).



Read more at Nasdaq: Dell vs. Microsoft: Which Cloud Stock Is the Better Buy Now?