For Immediate Release
Chicago, IL – September 1, 2026 – Today, Zacks Investment Ideas characteristic highlights Dell Technologies DELL, Nvidia NVDA, Advanced Micro Devices AMD, Hewlett Packard Enterprise HPE, Super Micro Computer SMCI and Lenovo Group LNVGY.
Buy DELL Before Q2 Earnings, as Server Demand Soars?
Dell Technologies is about to report Q2 outcomes after-market hours on Tuesday, September 1, with expectations operating excessive following explosive development in its AI infrastructure enterprise.
Dell is coming off a file first quarter, and one other sturdy exhibiting from AI-optimized servers might reinforce the bullish case for DELL inventory, which has surged over 260% 12 months thus far however is buying and selling 10% under a 52-week and all-time excessive of $514 a share.
Dell’s Lofty Q2 Expectations
The Zacks Consensus Estimate requires Q2 earnings of $4.95 per share, greater than doubling from EPS of $2.32 a 12 months in the past. Revenue is projected at $45.34 billion, representing 52% year-over-year development from $29.78 billion within the comparative quarter.
Notably, Wall Street’s expectations at the moment are barely forward of Dell’s personal steerage. Management beforehand projected Q2 income of $44-$45 billion and adjusted EPS of $4.80, plus or minus $0.10. Dell additionally expects roughly $15.5 billion in AI server income, with Infrastructure Solutions Group income projected to rise about 75%.
That follows a spectacular Q1 through which Dell generated $16.1 billion in AI-optimized server income, up 757% 12 months over 12 months, whereas reserving $24.4 billion of AI orders. Dell subsequently raised its present fiscal 2027 AI server income outlook to roughly $60 billion.
Rising EPS Estimates Are Another Bullish Signal
Perhaps the strongest indicator heading into Dell’s Q2 report is the upward development in analyst earnings estimates.
As proven under, EPS revisions for Q2, Q3, FY27, and FY28 have continued to development increased within the final week. In the final 90 days, FY27 EPS revisions have now spiked practically 11% from $17.40 to $19.29, with FY28 EPS revisions rising nearly 10% from $21.42 to $23.51.
After posting adjusted earnings of $10.30 per share final 12 months, Dell is now anticipated to put up 87% EPS development in its FY27, with one other 22% spike projected in FY28.
The Zacks ESP
More intriguing is that the Zacks ESP (Expected Surprise Prediction) paints an much more bullish image, with the Most Accurate and current estimate amongst Wall Street analysts having Dell’s Q2 EPS slated at $5.26 and greater than 6% above the underlying Zacks Consensus of $4.95 (Current Qtr under).
Keeping that in thoughts, Dell most not too long ago crushed Q1 EPS expectations by practically 60% and has posted a really spectacular common earnings shock of 18.66% in its final 4 quarterly experiences.
Dell’s Expanding AI Ecosystem
Dell stays one of the crucial direct {hardware} beneficiaries of hovering AI infrastructure spending by its server product line, primarily bought beneath the PowerEdge (PE) model, which offers the computing {hardware} that companies and knowledge facilities use to run functions, databases, cloud workloads, and AI workloads.
The firm’s partnership with Nvidia continues to broaden by the Dell AI Factory, together with new PE techniques designed round Nvidia’s next-generation Vera Rubin structure.
Dell can be deepening its relationship with Advanced Micro Devices, providing AI platforms powered by AMD Instinct accelerators.
Still, competitors stays intense. Hewlett Packard Enterprise, Super Micro Computer and Lenovo Group are competing aggressively for AI server and enterprise infrastructure spending, making Dell’s potential to keep up sturdy margins whereas quickly scaling AI shipments an necessary metric to observe.
Bottom Line
Dell enters its Q2 report with super momentum, supported by surging AI server demand, which has led to a really optimistic development of rising earnings estimate revisions.
This suggests there might actually be extra upside for Dell inventory, with shares nonetheless buying and selling at an inexpensive 24X ahead earnings a number of regardless of a large YTD rally.
That mentioned, the largest danger is that expectations have grow to be exceptionally excessive, with the present consensus already exceeding the higher finish of Dell’s unique Q2 steerage. Still, the mix of strong AI demand, sharply increased earnings projections, and an increasing Nvidia-and AMD-powered infrastructure portfolio makes the setup compelling forward of its Q2 outcomes.
At the second, Dell inventory sports activities a Zacks Rank #1 (Strong Buy), making DELL one of many extra engaging AI infrastructure shares to think about heading into Tuesday’s report.
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