Dell Technologies (DELL) stock is trading at a discount with a Value Score of A. DELL’s forward 12-month Price/Earnings ratio is 14.87X, lower than the Computer & Technology sector’s 29.15X. DELL is cheaper than Super Micro Computer (SMCI), which trades at 16.53X. DELL’s shares have gained 29.5% year-to-date, outperforming the sector.

Dell Technologies benefits from strong demand for AI servers, driven by digital transformation and generative AI applications. The company’s AI-optimized server shipments reached $8.2 billion in Q2 FY26, with an AI backlog of $11.7 billion. Dell projects $20 billion in AI server shipments for fiscal 2026.

DELL is expanding its portfolio with innovative products like the Dell PowerEdge XR8720t and upgrades to its AI Data Platform. The platform works with NVIDIA’s AI Data Platform and aims to enhance AI tasks like training, fine-tuning, and inferencing more efficiently.

Dell Technologies is partnering with industry leaders like NVIDIA, Microsoft, and Meta Platforms to expand its reach. The recent partnership with IREN to supply NVIDIA GPUs and data center equipment enhances Microsoft’s AI infrastructure. DELL offers positive Q3 FY26 guidance with revenue expected to grow by 11%.

Investors are advised to consider DELL stock, which benefits from rising demand for AI-optimized servers and a strong partner network. The company’s innovation in AI infrastructure and positive earnings outlook make it a favorable investment opportunity. DELL currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B.

Read more at Nasdaq: DELL at 14.87X P/E is Trading Dirt Cheap: Right Time to Buy the Stock?