DELL Analysis: Dell's Blowout Q4 and AI Server Doubling Guidance Make the Bull Case Hard to Ignore
Dell Technologies (NYSE: DELL) is having its moment. Shares surged 19% on February 27, 2026 after the company reported fiscal Q4 revenue of $33.4 billion — a blowout quarter that crushed expectations and capped off a transformative fiscal year. More importantly, Dell guided for its AI server revenue to double in fiscal 2027, a statement that reframes the company from a legacy PC and enterprise hardware vendor into a frontline beneficiary of the AI infrastructure buildout. At $145.10 per share, Dell trades at roughly 19.4x trailing earnings with a market capitalisation of $97.2 billion. The stock has more than doubled from its 52-week low of $66.25, yet remains well below its 52-week high of $168.08 — suggesting the market is still pricing in execution risk around the AI transition. For investors trying to separate signal from noise in the crowded AI trade, Dell offers something unusual: a company with real revenue, real earnings, and a concrete path to doubling its highest-growth segment. The question isn't whether Dell is benefiting from AI — the quarterly results make that undeniable. The question is whether the current valuation adequately reflects both the upside from AI server demand and the margin pressure from rising memory costs that come with it.