Is Dell Stock Priced Right Against Its Peers?

Key points

• Dell trades at a lower earnings multiple than most peers, even as its trailing four-quarter revenue growth outpaced the group.
• Over the latest four quarters, Dell grew revenue by 49%, surpassing peers such as Hewlett Packard Enterprise and HP Inc., with Dell also maintaining a higher operating margin.
• Infrastructure Solutions (servers, storage, networking) drove most growth, rising nearly 40% in fiscal 2026, while Client Solutions (PCs) grew around 5.4%; AI servers contributed significantly, including $16.4 billion in AI server revenue during the latest quarter.
• Dell ended the quarter with a large AI orders backlog, totaling about $95 billion still to ship, signaling strong demand ahead despite broader cost pressures.
• The company ranks fourth in operating margin within its group, with AI server mix contributing to ongoing margin improvement as scale increases.
• Management projects fiscal Q3 2027 revenue around $49 billion at the midpoint and raised the full-year revenue guide to about $192 billion, while cautions about parts shortages and rising costs, particularly memory chips.
• Dell shares fell about 41.9% between October 12 and November 10, 2026, contrasting with a broader market decline, which investors interpret as skepticism that growth will persist at current levels.