Portfolio: Zacks Top 10

Dell Technologies (NYSE: DELL) is positioned as a leading beneficiary of the accelerating adoption of artificial intelligence (AI) and infrastructure modernization across enterprise IT. The investment thesis for Dell is underpinned by its dominant market share in AI-optimized servers, expanding AI-powered PC portfolio, strategic partnerships, attractive valuation, and a robust capital return program.

AI Server Market Leadership: Dell is capturing significant share in the fast-growing AI server market, which is projected to expand at a 22–35% CAGR through 2030. Dell’s status as a top server OEM and its deep partnerships with NVIDIA, Microsoft, and others position it to lead in both AI infrastructure and edge computing deployments.

AI PC Refresh Cycle: The PC market is rebounding, driven by enterprise upgrades to AI-capable Windows 11 devices. Dell’s commercial segment is benefiting from this refresh, with CSG (Client Solutions Group) revenues rising 5% year-over-year to $12.5 billion in Q1 FY2026.

AI Factory and Professional Services: Dell’s collaboration with NVIDIA on the AI Factory initiative is accelerating enterprise AI adoption at scale. The company is also targeting recurring revenue from professional services to deploy and optimize AI infrastructure, creating new long-term revenue streams

All these initiatives have led to robust financial performance, with FY2026 revenue expected to grow +15% YoY and compound to $113 billion by FY2028 while trading for just a 12x forward P/E. We see this as an attractive growth business selling for an attractive price.