KeyBanc initiates coverage of Dell Technologies, highlighting strong revenue growth but concerns about gross margins

From Yahoo Finance: 2025-06-30 15:01:00

KeyBanc initiated coverage of Dell Technologies Inc. (DELL) with a “Sector Weight” rating, highlighting strong revenue growth and operating efficiency. However, the firm expressed concerns about gross margin pressure from lower margin AI Servers. Dell saw record server and networking revenue in Q1 2026 and expects revenue growth for FY 2026.

Dell Technologies Inc. (DELL) plays a vital role in providing hardware infrastructure for AI workloads, data centers, and cloud computing. The company generated $12.1 billion in AI orders in Q1 2026 alone, surpassing all shipments in FY 2025. Dell forecasts revenue between $101.0 billion – $105.0 billion for FY 2026.

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Read more: KeyBanc Starts Coverage of Dell Technologies (DELL) Stock, Gives Sector Weight Rating