Dell Technologies Inc.: Big Beat & Raise Driven by AI and Traditional Hardware and PC

Research evidence excerpt

Dell Technologies Inc.: Big Beat & Raise Driven by AI and Traditional Hardware and PC

Equity Research

IT Hardware and Communications Equipment

29 May 2026

Dell Technologies Inc.

Big Beat & Raise Driven by AI and

Traditional Hardware and PC

DELL beat across all segments with AI revenue and orders DELL OVERWEIGHT

impressive in the Q and FY AI server revenue target raised Unchanged

another ~$10Bn to $60Bn. Traditional server, storage and PC ITCommunicationsHardware and NEUTRAL

Equipment

Unchangedalso strong in the Q, we believe benefiting from much more

than just pull-ins and customer accelerations. Price Target USD 550.00 raised 227% from USD 168.00

Price (28-May-26) USD 317.05

Q1 results were impressive with strength across all business lines. AI server momentum Potential Upside/Downside +73.5%

continues with AI server revenue ~37% of total revenue in the Q and up 80% Q/Q. AI backlog Source: Bloomberg, Barclays Research

increased to $51.3Bn, up 19% Q/Q, and management now guides to ~$60Bn in FY AI server

revenue compared to prior view of $50B. AI customer base is now ~5,000 customers (up >50% in Market Cap (USD mn) 205945

last six months). Shares Outstanding (mn) 649.57

Free Float (%) 91.17

Traditional server results also impressive, up over 90% y/y with management now expecting

52 Wk Avg Daily Volume (mn) 7.1

traditional servers to grow just over 60% for the FY. We expect pricing and pull-ins are

Dividend Yield (%) 0.79

accounting for some of the traditional server demand, though management also highlighted

Return on Equity TTM (%) N/A

how agentic AI and inference are driving a new opp for traditional servers, and we know ASPs

Current BVPS (USD) -3.79

are up a lot on higher commodity costs and richer configurations. DELL IP portfolio drove Source: Bloomberg