DELL: AI Server Boom Powers Record $33B Quarter
Dell Technologies (NYSE: DELL) has surged 20.6% in a week after reporting a blowout fiscal Q4 with $33.4 billion in revenue — the highest quarterly figure in the company's history. Diluted EPS of $3.22 capped a fiscal year of accelerating profitability, with earnings per share climbing from $1.37 in Q1 to $3.22 in Q4. At $144, Dell trades at just 19 times trailing earnings with a 5% free cash flow yield. The earnings beat was driven by AI server demand, with Meta's announcement of up to $135 billion in AI infrastructure spending this year reinforcing Dell's position as a primary beneficiary of the enterprise AI buildout. Dell's PowerEdge servers using AMD's Instinct GPUs and EPYC CPUs are at the center of this capital expenditure cycle. The stock has more than doubled from its 52-week low of $66.25, yet at a $96.5 billion market cap against $113 billion in trailing revenue, Dell still trades below 1x sales — a remarkable discount for a company riding the most significant enterprise technology upgrade cycle in decades.