Dell Technologies is quietly outperforming some of the biggest names in AI infrastructure, making it one of the most compelling investment stories in tech right now.
While Nvidia dominates the AI data center accelerator market with an estimated 80% share, Dell has found a powerful growth lane by supplying the servers that house those chips.
Micron Technology is also riding the AI wave through surging demand for memory chips used in data centers, but Dell stock has actually outpaced both semiconductor giants in 2026.
Dell stock has soared 316% this year, comfortably eclipsing the 256% surge in Micron stock and Nvidia’s comparatively modest 23% gain.
The driver behind Dell’s extraordinary run is the booming demand for AI servers, a market that Fortune Business Insights estimates could grow from $262 billion in 2026 to $2.85 trillion in 2034 at a compound annual growth rate of nearly 35%.
Dell’s fiscal 2027 second-quarter results, released on September 1, showed quarterly revenue surging 58% year over year to a record $47 billion.
Non-GAAP earnings per share came in at a record $7.04 last quarter, a staggering 203% increase that blew past analyst expectations of $4.92 per share on revenue of $44.9 billion.
The company sold $16.4 billion worth of AI servers last quarter and received a record $60.9 billion in AI server orders during the same period, pointing to a rapidly expanding revenue pipeline.
Dell finished the quarter with a record AI order backlog of $95 billion, and management noted that its potential revenue pipeline sits at “multiples of our backlog.”
The company now expects its AI server revenue to increase 3x in fiscal 2027 to $74 billion, a growth rate that significantly outpaces the broader AI server market’s expansion.
Dell’s projected AI server revenue for fiscal 2027 suggests it is on track to control roughly 28% of the global AI server market in 2026, a commanding position that could grow further given its sizable backlog.
On the earnings front, Dell has raised its fiscal 2027 guidance and now expects non-GAAP earnings per share of $25.50, representing a remarkable 148% jump over the prior year.
Despite its multibagger performance, Dell trades at a relatively attractive 28 times forward earnings, nearly in line with the Nasdaq-100 index’s forward earnings multiple of 24, suggesting the stock still has room to run.
Assuming Dell’s earnings per share reach $34.56 in fiscal 2029 and the stock trades at 30 times earnings, the share price could climb to approximately $1,037, nearly double its current level.
Investors searching for a high-conviction AI infrastructure play with strong fundamentals and an expanding market opportunity would be well-served by taking a closer look at Dell Technologies (NYSE: DELL).
