Dell Technologies (DELL) has moved to the center of the AI infrastructure story after reporting very strong growth in AI focused servers and sharply higher full year guidance for revenue and earnings.

The latest AI server results and raised guidance have coincided with a sharp re-rating of Dell Technologies, with the share price up 69.04% over 30 days and delivering a 1-year total shareholder return of 265.12%. Multi year total shareholder returns are also very large, suggesting strong momentum rather than a short term spike.

If Dell’s AI surge has caught your attention, it could be worth scanning other infrastructure plays through the 48 AI infrastructure stocks

With Dell Technologies now valued at about $256.4b and trading at $409.07 a share, after a 265.12% 1-year return and strong AI server guidance, the key question is whether there is still an opportunity to buy the stock or if the market is already pricing in much of the future growth.

Most Popular Narrative: 15.5% Undervalued

Against Dell Technologies' last close at $409.07, the most widely followed narrative points to a fair value of about $483.83, suggesting the recent AI driven surge still sits below its implied long term worth when those assumptions are applied.

Dell is shifting its business mix toward more IP rich and margin accretive storage and services through modernization and efficiency improvements, which is likely to expand operating margins and long term earnings power.

Curious how Dell Technologies gets from today’s numbers to that higher fair value? The narrative leans on stronger growth, fatter margins, and a richer earnings multiple. The exact mix of revenue expansion, profitability assumptions, and discount rate is doing the heavy lifting in this model.

Result: Fair Value of $483.83 (UNDERVALUED)

However, Dell Technologies’ reliance on cyclical PCs and currently margin-dilutive AI server revenue means weaker demand or sustained pricing pressure could quickly challenge this upbeat narrative.

Next Steps

With sentiment this upbeat on Dell Technologies, are you weighing the same risks and rewards, or seeing something different and ready to move quickly by checking the 3 key rewards and 3 important warning signs

Looking for more investment ideas beyond Dell Technologies?

If Dell Technologies has sharpened your interest in AI infrastructure and you want a broader watchlist, now is the time to line up your next potential moves.

• Target resilience by filtering for companies that prioritize financial strength with the solid balance sheet and fundamentals stocks screener (48 results)
• Hunt for potential mispriced opportunities by scanning the 47 high quality undervalued stocks
• Spot lesser known opportunities before they hit the spotlight using the screener containing 20 high quality undiscovered gems

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.