Back to blog

Dell in the Era of Artificial Intelligence: Beating Expectations and Billion-Dollar Revenue Forecasts

March 2, 2026

Just a few years ago, Dell was primarily seen as a reliable supplier of office equipment and personal computers. However, in 2026, this technological veteran has definitively transformed into a key player in artificial intelligence infrastructure, as confirmed by its latest financial results. Following the release of the report for the fourth fiscal quarter, Dell's shares responded with a rocket-like increase of 22%,* sending a clear signal that the market has enormous confidence in its new strategy.

 Dell in the Era of Artificial Intelligence: Beating Expectations and Billion-Dollar Revenue Forecasts
Financial Strength


In the past quarter, Dell not only met the expectations of analysts surveyed by the London Stock Exchange Group (LSEG) but exceeded them in many areas. Starting with earnings per share (EPS), it increased to 3.89 USD, significantly surpassing the market estimate of 3.53 USD. Similarly, revenues saw a positive development, increasing by nearly 40% year-on-year, reaching 33.38 billion USD, exceeding analysts’ consensus by over 1.5 billion USD.


DELL_2026-03-02_13-47-35



Performance of Dell’s stock price over the last five years


Dell’s fundamental strength for 2026 undoubtedly pleased investors, but the primary trigger for the subsequent stock price growth was the outlook for the upcoming fiscal year 2027. While the market had set the revenue forecast at just under 125 billion USD, Dell’s management confidently set the bar at 138 to 142 billion USD. This optimism stems primarily from the demand for AI servers, which are expected to generate 50 billion USD in revenue by 2027, more than double compared to the previous year. [1]


The Battle for Memory


The tech world is currently facing a historic shortage of memory chips, which is creating significant tension across the sector. Memory manufacturers are prioritizing high-bandwidth memory (HBM) components for chipmakers like Nvidia and AMD, or for cloud giants like Google. This leaves traditional hardware manufacturers with limited components, leading to longer delivery times and drastic price increases.


Dell has approached this crisis proactively and has already begun raising prices for its products in the past year. CFO David Kennedy clarified that these steps were necessary to offset higher costs and protect the company's margins. COO Jeff Clarke emphasized that the key to success lies in close collaboration with partners, which allows Dell flexibility in its supply chain, setting it apart from competitors who often struggle with unpreparedness for price shocks.


Market Divergence


Looking at the competitive environment, the contrast between the major players is striking. While Dell is growing based on fundamental parameters, HP’s stock has fallen to its 52-week low. * The primary problem for HP is that memory costs now account for approximately 35% of the total cost of manufacturing a computer, double what it was a year ago. The inability to pass on this 100% increase in costs to the end customer has unfortunately exposed the vulnerability of their business model.


HPQ_2026-03-02_13-54-39


Performance of HP’s stock price over the last five years


Bank of America, while highlighting the risk of demand elasticity, or concerns that too-expensive computers may deter some customers, nonetheless raised its target price for Dell shares from 135 USD to 155 USD with a maintained "Buy" recommendation. [1] Unlike HP, Dell has successfully transformed its identity from a hardware vendor to a provider of comprehensive AI solutions, securing its place in institutional investors' portfolios.


Conclusion


If Dell succeeds in meeting its ambitious goal of doubling revenue from AI servers, it could become a fundamental pillar of infrastructure in the new digital era. Although questions remain about how long customers will be willing to accept rising hardware prices, the current dynamics clearly play in favor of this long-established Texas legend.


*Past performance is not a guarantee of future results.


[1] These statements do not guarantee future performance. Forward-looking statements inherently involve risks and uncertainties, as they relate to future events and circumstances that cannot be predicted, and actual developments and results may differ materially from those expressed or implied in any forward-looking statements.


Disclaimer! This marketing material is not and must not be construed as investment advice. Data related to the past are not a guarantee of future returns. Investing in foreign currency may affect returns due to fluctuations. All securities transactions may result in both gains and losses. Forward-looking statements represent assumptions and current expectations that may be inaccurate or based on the current economic environment, which may change. These statements do not guarantee future performance. InvestingFox is a trade name of CAPITAL MARKETS, o.c.p., a.s., regulated by the National Bank of Slovakia.


Sources:


https://investors.delltechnologies.com/

https://investors.delltechnologies.com/static-files/cbb4c668-2613-4d5c-a7dc-98fe4592b5a5

https://www.cnbc.com/2026/02/27/dell-stock-earnings-memory-shortage-ai-servers.html

Read more

Palo Alto Networks under pressure: AI acquisitions raise costs and squeeze profitability

Palo Alto Networks under pressure: AI acquisitions raise costs and squeeze profitability

February 23, 2026

Palo Alto Networks is among the biggest players in cybersecurity and, in recent years, has been built around a simple goal: to be a platform that covers as many security needs at once as possible. In practice, this means rapid expansion of the portfolio, a strong emphasis on automation, and increasingly also security for AI applications and AI agents. However, this strategy comes at a clear cost. Acquisitions accelerate growth and expand the addressable market, but they also bring integration costs, higher spending on development and sales, and short-term pressure on margins. That is exactly what has become the main theme around PANW shares in recent weeks.

Amazon in the Era of AI Investments: Record Revenues Versus a USD 200 Billion Bet on the Future

Amazon in the Era of AI Investments: Record Revenues Versus a USD 200 Billion Bet on the Future

February 9, 2026

In the investment world, it is often said that markets look forward, not backward. Amazon’s economic results for the fourth quarter of 2025 are a perfect example of this principle. Although the technology giant delivered historically record revenues and confirmed the expansion of its key divisions, the share price reacted with a relatively sharp decline.* The reason, however, lies not in the past, but in an ambitious investment plan for 2026.

Czechoslovak Group (CSG) Successfully Lists on the Stock Market: What Are the Next Prospects?

Czechoslovak Group (CSG) Successfully Lists on the Stock Market: What Are the Next Prospects?

January 26, 2026
Czechoslovak Group (CSG), a Czech defense group with over 30 years of tradition, has successfully made its way onto the Amsterdam Stock Exchange, marking the start of its journey to become a leader in the global defense industry. Following its Initial Public Offering (IPO), CSG’s shares increased by 31.4%, raising the company’s market capitalization to approximately CZK 770 billion.* CSG has thus immediately surpassed ČEZ, a clear indicator of its growing strength and investment appeal.