In the past three months, Dell Technologies’ stock has fallen by 17.8%, underperforming the Computer & Technology sector. The company is facing challenges due to supply chain constraints and competitive pressures in the PC and AI server markets.

Despite the challenges, Dell Technologies is seeing strong demand for AI servers, with $12.3 billion in orders in the third quarter of fiscal 2026. The company expects to ship $9.4 billion worth of AI servers in the fourth quarter, representing a 150% year-over-year growth.

Dell Technologies’ expanding portfolio and focus on AI infrastructure have driven revenue growth. The company expects revenue to reach $31.5 billion in the fourth quarter of fiscal 2026, with a 32% year-over-year growth.

While Dell Technologies’ stock is trading at a significant discount, the company faces stiff competition in the AI infrastructure space from companies like Hewlett-Packard, Cisco Systems, and Super Micro Computer.

Investors should consider Dell Technologies’ long-term potential in the AI server market, despite headwinds in the consumer PC segment. The company’s positive earnings outlook supports its strength, but investors may want to wait for a more favorable entry point to accumulate the stock.

Read more at Nasdaq: DELL Plunges 18% in Three Months: Buy, Sell, or Hold the Stock?