The AI Boom Is Likely to Keep Pushing DELL Stock Higher

Dell Technologies (DELL) is already benefiting from tremendous demand for its AI servers, and that trend is likely to continue to intensify for the foreseeable future. Further, despite the huge rally of DELL stock at 89% so far in 2026, the shares' valuation is still quite attractive. And finally, one of the company's key challenges is reportedly easing, while both Citi and JPMorgan recently issued very bullish notes on DELL stock.

In light of all of these points, value investors should consider buying the shares before May 28, when the venerable IT firm is slated to unveil its fiscal first-quarter results. The firm's Q1 ended on April 30.

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About Dell Technologies Stock

Dell Technologies is a leading U.S. multinational technology company, specializing in computers, servers, storage, and AI solutions. Formed by the 2016 merger of Dell and EMC, the firm is a key player in digital infrastructure, providing products for consumers and enterprises, including Alienware gaming PCs and PowerEdge servers. Dell's servers are used to run AI workloads, and hyperscalers and AI developers are among the major users of its servers.

Its market capitalization sits at $156.26 billion, while its forward price-to-earnings ratio was 20.84 times.

Dell's AI Servers Are a Hot Product

In its fourth quarter, the firm received a staggering $12.3 billion of orders for its AI servers, while its backlog for such servers reached $18.4 billion as of the end of last year. Amid the powerful demand for its AI servers, its overall revenue from AI-related products more than quadrupled in fiscal Q4, and it expects its sales of such products to jump 103% during this fiscal year to $50 billion.

The Demand for Dell's AI Servers Likely Soared in Q1 and Should Continue To Jump Going Forward

One of the specific, major positive catalysts driving the demand for Dell's products is the explosive proliferation of large language models (LLMs), including Claude, Anthropic's LLM and ChatGPT, OpenAI's LLM.  In Q1, Anthropic's “revenue and usage” soared 80 times “on an annualized basis,” the latter company's CEO told CNBC earlier this month.