Is Dell Technologies (DELL) a Buy Amid Rising Earnings Estimates and AI Infrastructure Growth?

In the rapidly evolving technology landscape, Dell Technologies (DELL) has emerged as a compelling case study in value-driven growth, driven by surging demand for AI infrastructure and a strategic repositioning within the enterprise computing sector. As of December 2025, the company's financial performance, valuation metrics, and sector leadership in AI infrastructure suggest a compelling investment opportunity for those seeking exposure to the next phase of the AI revolution.

Earnings Momentum and Strategic Rebalancing

Dell Technologies delivered a robust performance in fiscal 2025, with full-year revenue reaching $95.6 billion-a 8% year-over-year increase-and Q4 revenue of $23.9 billion, . The , which includes servers, storage, and networking, was a standout performer, , . This growth was fueled by .

Looking ahead, Dell has raised its fiscal 2026 revenue guidance , , . For Q1 2026, the company expects revenue of $22.5–$23.5 billion, . While , , highlighting the company's ability to leverage non-GAAP metrics to offset short-term GAAP volatility.

Valuation Metrics: Undervalued Relative to Growth

Dell's valuation appears attractive when compared to industry benchmarks. As of December 2025, , significantly below the Computer & Technology sector's average . , . This discrepancy suggests that the market may not yet be fully pricing in Dell's long-term growth potential, particularly in AI infrastructure.

However, Dell's price-to-book (P/B) ratio remains a concern. For Q4 2025, , . While this metric highlights structural challenges in asset valuation, Dell's strong cash flow generation and strategic focus on high-margin AI infrastructure solutions mitigate this risk. , , further reinforces its value proposition.

AI Infrastructure: A Catalyst for Sector Leadership

Dell's dominance in AI infrastructure is reshaping its competitive positioning. The company has , according to . In Q2 2026 alone, , . This momentum has prompted Dell to raise its AI server shipment guidance , .

The AI infrastructure market itself is expanding at an unprecedented pace. in Q2 2025, . Dell's strategic partnerships, such as its collaboration with NVIDIA on liquid-cooled AI infrastructure and its launch of Canada's first PowerEdge XE9712 cluster with NVIDIA GB300 NVL72, position it to capitalize on this growth. According to the 2025 , Dell was named both Market Leader and Innovation Leader in File and Object Storage for AI, outperforming peers like NetApp and Pure Storage.

Sector Positioning and Long-Term Prospects

Dell's leadership in AI infrastructure is not just a short-term trend but a structural shift in its business model. The company's integrated, end-to-end solutions-ranging from rack-scale systems to enterprise services-differentiate it from competitors like Super Micro Computer, which rely on modular, component-based offerings. This holistic approach aligns with the growing demand for turnkey AI deployments in enterprises, where Dell's ecosystem of partners and services provides a competitive edge.

Moreover, , . Dell's current market position, combined with its ability to scale AI server shipments and innovate in cooling and storage technologies, positions it to outperform broader market growth. The U.S., , is a critical growth engine, with Dell's strong enterprise relationships and domestic manufacturing capabilities further enhancing its advantage.

Risks and Considerations

While Dell's trajectory is promising, investors should remain mindful of risks. The negative P/B ratio and potential margin pressures from intense competition in the AI server market could weigh on profitability. Additionally, macroeconomic headwinds, such as rising interest rates or a slowdown in enterprise IT spending, could dampen demand. However, Dell's diversified product portfolio, strong balance sheet, and leadership in high-growth AI infrastructure mitigate these risks.

Conclusion: A Buy for Value-Driven Growth

Dell Technologies is a compelling buy for investors seeking exposure to the AI infrastructure boom. Its combination of rising earnings estimates, undervalued valuation metrics, and sector-leading AI capabilities positions it to deliver outsized returns in the coming years. While short-term challenges like the negative P/B ratio persist, the company's long-term growth drivers-driven by AI-justify a bullish outlook. As the AI infrastructure market accelerates, Dell's strategic investments and ecosystem advantages will likely cement its role as a cornerstone of the next computing era.