Dell Shares Surge on AI Infrastructure Boom

Dell Technologies' stock is demonstrating remarkable momentum, posting substantial gains that have captured market attention. The equity has climbed 22.2% over the past month and has advanced an impressive 40.4% since the start of the year. Recent trading activity shows particular strength, with shares gaining another 9% during the previous week alone. This sustained upward movement raises questions about its fundamental drivers.

The company's latest earnings report reveals record-breaking performance. For the second quarter of 2026, Dell achieved unprecedented revenue of $29.8 billion, representing a 19% year-over-year increase. Particularly noteworthy was the Infrastructure Solutions Group, which expanded by 38%. Revenue specifically from AI servers reached $3.2 billion, marking a sequential increase of 23%.

Financial analysis indicates the stock remains undervalued despite these significant gains. A discounted cash flow calculation suggests an intrinsic value of $195.60 per share, implying the current trading price sits at a 16.4% discount. The price-to-earnings ratio of 22.7 further supports this assessment, standing well below the considered fair value multiple of 37.9.

Wall Street Endorsement Grows

Major financial institutions have responded positively to Dell's positioning in the artificial intelligence infrastructure market. During October, several prominent firms raised their price targets for the company. Bank of America reaffirmed its "Buy" recommendation, while JPMorgan, Bernstein, UBS, and Citigroup all increased their expectations following optimistic AI server projections.

Should investors sell immediately? Or is it worth buying Dell?

The company has strengthened its forward guidance, now anticipating long-term revenue growth between 7% and 9%. Additionally, management expects profit growth of at least 15%. The strategic "Dell AI Factory with Nvidia" initiative provides additional momentum in the lucrative AI infrastructure sector.

Shareholder Returns and Upcoming Catalysts

Investors are benefiting through multiple channels. Beyond the substantial share price appreciation, the company will distribute a quarterly dividend of $0.525 per share on October 31. Market participants are now looking toward the next significant event on November 25, when Dell is scheduled to release its quarterly financial results.

With technical indicators remaining supportive and fundamental metrics appearing robust, market observers are questioning whether Dell shares are positioned for their next upward trajectory.