Dell Technologies (DELL) reports strong growth in its Infrastructure Solutions Group (ISG) with revenues of $14.10 billion in Q3 FY2026, driven by cloud infrastructure demand. The company booked $12.3 billion in AI server orders and ended the quarter with a record backlog of $18.4 billion. DELL’s focus on AI solutions and storage portfolio strengthens its cloud offerings.

DELL faces competition from Microsoft (MSFT) and Alphabet (GOOGL) in the cloud market. Microsoft’s Azure cloud revenues were $49.1 billion in Q1 FY2026, exceeding expectations. Google Cloud ended Q3 2025 with a $155 billion backlog. 70% of Google Cloud customers use Alphabet’s AI products.

DELL’s stock has gained 4% in the last six months, underperforming the sector. With a forward P/S of 0.68X and a Value Score of A, DELL shares are considered cheap. The consensus estimate for FY2026 earnings is $9.89 per share, suggesting 21.50% YOY growth.

One under-the-radar chipmaker is positioned to benefit from the data center market’s growth. As data demand rises, companies providing hardware for data centers will thrive. This chipmaker specializes in products that giants like NVIDIA don’t offer, making it a promising investment opportunity.

Read more at Nasdaq: DELL Expands Cloud Infrastructure Reach: A Catalyst for ISG Growth?