Dell Technologies Inc.

(New York Stock Exchange)
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Bullish +75

Dell (DELL): A Top 10 Cheap AI Stock Trading at 13x Forward Earnings

AI infrastructure Earnings report Financial outlook AI-generated analysis

πŸ“ˆ Dell Technologies ranks 10th on a list of top cheap stocks to buy heading into 2027.

πŸ’° The company trades at a forward P/E ratio of 13x with expected revenue growth nearing 34% for 2027.

🏦 Dell is identified as one of the most popular stocks among hedge funds.

πŸ“Š Dell booked a record $60.9 billion in AI server orders during its fiscal second quarter.

πŸ“¦ The company ended the quarter with a massive $95 billion backlog of AI servers waiting to ship.

πŸš€ Dell lifted its full-year revenue outlook to $192 billion following strong quarterly performance.

πŸ–₯️ Revenue from traditional servers and networking jumped 122% as customers replace aging data center equipment.

πŸ’Έ Dell returned a record amount to shareholders through buybacks and dividends in the quarter.

⚑ Management stated that demand for AI infrastructure is running ahead of current supply capabilities.

Bullish Signals
  • Dell booked a record $60.9 billion in AI server orders in its fiscal second quarter, demonstrating strong market demand.
  • The company ended the quarter with a substantial $95 billion backlog of AI servers waiting to ship.
  • Dell lifted its full-year revenue outlook to $192 billion based on robust order intake and business performance.
  • Revenue from traditional servers and networking jumped 122% as customers modernize data centers for AI and general computing needs.
  • Management indicated that demand is running ahead of supply, ensuring continued order flow despite component constraints.
  • Dell returned a record amount to shareholders in the quarter through buybacks and dividends.
Full Analysis
Dell Technologies (NYSE:DELL) has been highlighted as a top value investment opportunity, ranking 10th on a list of cheap stocks for 2027. The article notes that Dell trades at a forward price-to-earnings ratio of 13x and is expected to see revenue growth approaching 34% by 2027. Additionally, the stock is noted as being popular among hedge funds, suggesting strong institutional interest in its current valuation. In its fiscal second quarter, Dell reported a significant surge in demand for AI infrastructure, booking a record $60.9 billion in AI server orders and ending with a $95 billion backlog of AI servers awaiting shipment. This robust order book led the company to lift its full-year revenue outlook to $192 billion. Beyond AI-specific hardware, Dell also saw traditional server and networking revenue jump 122% as customers modernize data centers for performance and efficiency. Management indicated that demand is currently outpacing supply, with customers eager to upgrade equipment despite component constraints. The company also returned a record amount of capital to shareholders through buybacks and dividends in the quarter. While acknowledging risks, the article positions Dell's strong order book and valuation as key reasons for its inclusion among attractive AI infrastructure stocks.