DELL shares surge 37% in a month due to expanding portfolio and strong demand for AI servers.

by MarketNewsData

From Nasdaq: 2025-05-21 11:03:00

Dell Technologies (DELL) shares have surged 36.6% in the past month, outperforming the Computer and Technology sector and the Computer – Micro Computers industry. DELL’s expanding portfolio and partner base have contributed to this growth, with a focus on infrastructure solutions for cloud environments and modern data centers.

DELL’s AI Factory upgrades aim to accelerate enterprise AI deployments across various environments. Strong demand for AI servers led to a $1.7 billion increase in orders in Q4 FY25. The company shipped $2.1 billion worth of AI servers in the quarter, with a healthy backlog of $4.1 billion.

DELL’s partnership with NVIDIA, Worley, Microsoft, Meta Platforms, AMD, and Imbue has bolstered its position in the AI market. Collaborations with Meta Platforms and AMD have led to advancements in AI deployment and telecom network monitoring solutions using Dell PowerEdge servers.

For Q1 FY26, DELL expects revenues between $22.5 billion and $23.5 billion, with mid-point estimates suggesting 3% year-over-year growth. Non-GAAP earnings are projected to be $1.65 per share (+/- 10 cents), indicating 25% growth at the midpoint. Analysts estimate a 42.12% year-over-year growth in earnings.

Despite strong fundamentals, DELL stock is trading at a significant discount with a forward P/E ratio of 0.77X compared to the sector’s 6.14X. Challenges in the PC market recovery, pricing environment, and gross margin expansion, along with trade tensions, have impacted investor sentiment. The stock currently has a Zacks Rank #3 (Hold).

Zacks Investment Research recommends a semiconductor stock with strong growth potential, positioning it to leverage the demand for AI, ML, and IoT. Global semiconductor manufacturing is projected to reach $803 billion by 2028. Access the free report for more insights and recommendations.



Read more at Nasdaq: DELL Surges 37% in a Month: Should You Buy the Stock Now or Wait?

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