Is DELL Stock a Buy or Sell Right Now? Here's What the Numbers Show

Dell Technologies looks like a head-scratcher for investors lately. The stock has dropped nearly 18% over the past three months, lagging both the broader Computer & Technology sector (which gained 3.2%) and the specific Micro Computers industry (up 5%). On the surface, it looks rough—but dig deeper into the fundamentals, and the picture gets more interesting.

The AI Server Boom Is Real For Dell

Here’s the thing that caught attention: in the third quarter of fiscal 2026, Dell booked a staggering $12.3 billion in AI server orders. Year-to-date? $30 billion. The company actually shipped $5.6 billion worth of AI servers in Q3 alone, and closed the quarter with a record $18.4 billion backlog of unfulfilled AI orders.

These aren’t vanity metrics. The demand is coming from a diverse customer base—cloud providers, sovereign entities, and major enterprises all want in on the AI infrastructure game. Dell expects to ship around $9.4 billion more AI servers in fiscal Q4, which could push full-year shipments to approximately $25 billion, representing a 150% year-over-year surge.

The Infrastructure Play Is Printing Money

The real growth engine is Dell’s Infrastructure Solutions Group (ISG). Revenue jumped 24% year-over-year to $14.10 billion in Q3—and this marks seven straight quarters of double-digit growth. That’s not a fluke; it’s momentum.

Dell recently announced a partnership to supply PowerEdge AI servers and NVIDIA Blackwell GPUs for a major supercomputing cluster launching in early 2026. The company’s AI-first portfolio strategy is clearly resonating with enterprise customers looking to modernize their infrastructure for AI and machine learning workloads.

The Numbers on the Buy Side Look Solid

Wall Street expects Q4 fiscal 2026 revenues between $31-$32 billion (consensus: $31.62 billion), implying 32% year-over-year growth. For full-year fiscal 2026, Dell is guiding to $111.2-$112.2 billion in revenue, suggesting 17% annual growth.

On the earnings front, Dell expects non-GAAP EPS of $3.50 (+/- 10 cents) for Q4, up 31% YoY. Full-year non-GAAP EPS is expected to hit $9.92 (+/- 10 cents), representing 22% year-over-year growth. The consensus hasn’t budged in 30 days, signaling confidence in the guidance.

Additionally, DELL shares trade at a bargain valuation. The stock carries a Value Score of A, with a forward 12-month P/S ratio of 0.66X—a substantial discount compared to the broader Computer and Technology sector’s 7.41X. Translation: you’re not paying a premium for this growth story.

But There Are Real Headwinds to Consider

The sell side of the equation shouldn’t be ignored. Dell is facing stiff competition in the AI infrastructure space from other vendors ramping up AI capabilities. Beyond competition, the company’s traditional consumer PC business continues to decline—a legacy drag that’s hard to ignore. Supply chain costs and competitive margin pressures in the AI market are also eating into profitability.

The 18% drop over three months partly reflects concerns about whether Dell can sustain this growth trajectory while managing costs effectively. Investors are right to question whether current valuations adequately reflect execution risks.

So… Buy or Sell?

Dell Technologies currently carries a Zacks Rank #3 rating (Hold). The bull case is compelling: massive AI server backlog, strong guidance, reasonable valuation, and structural tailwinds from digital transformation and generative AI adoption. However, the near-term stock weakness and competitive pressures suggest patience might be rewarded. Rather than chasing the stock here, waiting for a pullback or clearer proof of margin stability could offer a better entry point for investors looking to accumulate positions.

The data supports both optimism and caution—typical of a Hold rating in a volatile market.