From Nasdaq: 2025-04-29 15:00:00

Dell Technologies shares are undervalued with a Value Score of B and a low P/E ratio of 11.51X compared to the sector’s 23.15X. Despite a YTD decline of 18.3%, the company benefits from surging demand for AI servers, with $1.7 billion in orders in Q4 2025. Dell also has positive Q1 2026 guidance.

The drop in Dell Technologies’ share price is attributed to market weakness and trade tensions. However, the company is capitalizing on AI server demand, collaborating with partners like NVIDIA, Worley, and Meta Platforms. Q1 2026 revenue is expected to grow 3% YoY, with earnings up 25%.

Zacks names a top semiconductor stock with significant growth potential amid rising demand for AI, ML, and IoT technologies. Global semiconductor market value is projected to reach $803 billion by 2028. Investors should consider Dell Technologies’ expanding partner base and growth outlook, despite near-term challenges in the PC market.

Investors should monitor Dell Technologies’ long-term revenue CAGR of 3-4%, with ISG expecting 6-8% growth and CSG at 2-3%. While earnings are projected to grow over 8%, competition in the AI market and macroeconomic challenges pose short-term risks. With a Zacks Rank #3, a more favorable entry point may be advisable.



Read more at Nasdaq: Dell Technologies Stock Trading at Big Discount: Should You Buy, Sell or Hold?