Dell Technologies (DELL) Stock Jumps on AI Server Boom After Q3 Earnings

Dell Technologies Inc. (NYSE: DELL) is firmly back in Wall Street’s spotlight today as investors digest blockbuster fiscal third‑quarter results and a sharply higher outlook for artificial‑intelligence (AI) server demand.

As of early afternoon on Wednesday, November 26, 2025, Dell shares are trading around $134.25, up roughly 6.6% from Tuesday’s close of $125.92, after touching an intraday high of $135.31. Volume has already cleared 11 million shares, well above a typical day’s pace. ^[1]

The move makes Dell one of the notable gainers in a tech‑led rally ahead of the U.S. Thanksgiving holiday, with the Nasdaq 100 up around 1–1.2% and the S&P 500 up close to 1% at midday. ^[2]

Dell stock price today: reclaiming ground after an AI wobble

Today’s surge follows a strong premarket reaction: Dell stock traded as high as $131.65 before the opening bell, roughly 4.5% above yesterday’s close, after the company posted record Q3 results and lifted its full‑year guidance on the back of exploding AI server demand. ^[3]

From a technical and longer‑term perspective:

Dell is now more than 100% above its 12‑month low of $66.25. ^[4]
Even after today’s pop, the stock trades about 20% below its 52‑week high of $168.08, leaving room between the current price and prior peaks. ^[5]
Based on recent market‑cap numbers in the mid‑$80 billions and today’s higher share price, Dell’s equity value now sits around the low‑$90 billion range. ^[6]

In short: the stock has already doubled over the past year, yet many investors still view it as an AI infrastructure play trading at a discount to some of the more speculative names in the space.

Record Q3 FY2026 results: AI infrastructure leads the charge

Dell’s fiscal 2026 third‑quarter results (for the period ended October 31, 2025) are the core driver of today’s move.

According to the company’s earnings release: ^[7]

Revenue:
- $27.0 billion, a record third quarter, up 11% year over year.
Profitability:
- GAAP EPS: $2.28, up 39% year over year.
- Non‑GAAP EPS: $2.59, up 17%, and ahead of analyst estimates around $2.47–$2.48. ^[8]
Cash flow:
- $1.2 billion in cash flow from operations for the quarter. ^[9]

The standout story is Dell’s Infrastructure Solutions Group (ISG), which houses its data‑center and AI hardware offerings:

ISG revenue hit $14.1 billion, up 24% year over year.
Within ISG, servers and networking revenue reached $10.1–10.2 billion, up 37%. ^[10]
Dell shipped $5.6 billion of AI‑optimized servers in the quarter and logged $12.3 billion in AI server orders, bringing year‑to‑date AI orders to about $30 billion. ^[11]

Management framed this as a powerful validation of Dell’s positioning in the AI infrastructure arms race. COO Jeff Clarke highlighted that Dell’s five‑quarter AI pipeline is “multiples” of its already‑large $18.4 billion backlog and spans neocloud providers, sovereign customers, and enterprises. ^[12]

Constellation Research notes that Dell’s ability to rapidly deploy high‑performance AI racks—often within 24 to 36 hours with uptime above 99%—is becoming a key differentiator as customers scale out AI clusters. ^[13]

Client Solutions (PCs) stay subdued as Windows 11 upgrade lags

The Client Solutions Group (CSG)—Dell’s PC and client device business—remains the relative laggard:

CSG revenue was $12.5 billion, up only 3% year over year.
Commercial PC revenue grew 5%, but consumer revenue fell 7%.
Operating income for the segment was $748 million, essentially flat versus a year ago. ^[14]

An analysis from The Register adds more color: Dell expects PC unit sales to be roughly flat next year, despite buzz around “AI PCs” and the approaching end of support for Windows 10. COO Jeff Clarke told investors that the Windows 11 transition is running 10–12 percentage points behind the previous OS upgrade cycle, estimating that about 500 million PCs can’t run Windows 11 and another ~500 million don’t yet need an upgrade. ^[15]

In other words, the PC refresh wave is slower and lumpier than many in the market hoped, and Dell is leaning heavily on its data‑center and AI franchise to offset the drag from a “roughly flat” PC market.

At the same time, Clarke suggested Dell still sees mid‑ to high‑single‑digit growth in its own PC sales, helped by commercial customers gradually modernizing fleets and by Dell’s ability to bundle PCs with services and infrastructure deals. ^[16]

Guidance: Dell leans into AI, raises FY26 outlook

The most important element for the stock today is arguably guidance, not just the backward‑looking Q3 numbers.

From Dell’s official outlook and subsequent analysis: ^[17]

Full‑year FY26 revenue is now guided to $111.2–$112.2 billion, implying roughly 17% growth at the midpoint.
Full‑year AI server shipments are expected to be about $25 billion, up more than 150% year over year and increased from a prior outlook of around $20 billion.
Full‑year EPS:
- GAAP diluted EPS expected around $8.38 at the midpoint, up about 31% year over year.
- Non‑GAAP diluted EPS expected $9.92 at the midpoint, up about 22%.
Q4 FY26 outlook:
- Revenue between $31–$32 billion, implying roughly 32% year‑over‑year growth at the midpoint of $31.5 billion.
- Non‑GAAP EPS around $3.50, above many Street estimates near $3.31.

UBS, in a note summarized by Investing.com, highlighted that Dell’s guidance includes an AI revenue outlook of $9.4 billion for Q4 alone, underscoring how central AI servers have become to the growth story. ^[18]

Wall Street reaction: price‑target tweaks, “Moderate/Buy” consensus

Analysts have largely welcomed the results and guidance, while acknowledging some mixed signals around PCs and non‑AI infrastructure.

According to MarketBeat and Investing.com: ^[19]

Earnings vs expectations:
- Non‑GAAP EPS of $2.59 beat the consensus estimate (~$2.47–$2.48) by roughly 5–6%.
- Revenue of about $27.0–27.01 billion came in slightly below expectations around $27.26–$27.3 billion.
Ratings & targets:
- MarketBeat shows a “Moderate Buy” consensus, with 17 Buy, 8 Hold, and 1 Sell rating, and an average price target around $160–161 per share. ^[20]
- UBS trimmed its target from $186 to $167 but maintained a Buy, citing strong AI revenue but softer performance in other infrastructure and PC segments. ^[21]
- Other firms such as Piper Sandler, Mizuho, and Goldman Sachs have raised targets into the $170–$185 range, highlighting Dell’s upgraded AI shipment outlook and improved multi‑year earnings profile. ^[22]

On valuation, Dell is not priced like a speculative high‑growth AI startup:

It trades around 18–19× trailing earnings, with a PEG ratio under 1.0, implying its earnings growth forecast still outpaces the multiple investors are paying. ^[23]
The stock offers an annual dividend of $2.10 per share (about $0.525 quarterly), implying a yield around 1.6–1.7% at recent prices, with a payout ratio near 31% and four consecutive years of dividend increases. ^[24]

This mix—AI‑driven growth with a moderate multiple and a growing dividend—is part of why many analysts continue to favor Dell within the broader AI infrastructure theme.

Ownership trends: institutions & insiders heavily involved

Institutional and insider ownership are both high, underscoring that Dell is very much an “institutional stock” today.

MarketBeat’s coverage of recent filings notes that: ^[25]

Edmond de Rothschild Holding S.A. increased its Dell position by 5.6% in the second quarter, to 46,271 shares worth about $5.7 million at the time.
Several other institutional investors have been adding to or initiating positions, and roughly 76% of Dell’s float is held by institutions and hedge funds.
Insiders still own about 42% of the stock, though there has also been substantial insider selling in recent months as early investors and sponsors take profits after the multi‑year run.

High insider ownership can align management and shareholder interests, but sustained insider selling is something investors will likely continue to watch.

How Dell fits into today’s broader market move

Today’s jump in Dell shares is happening against a supportive macro and market backdrop.

U.S. stocks are on track for one of their biggest holiday‑week rallies since June, with the Nasdaq up more than 4% so far this shortened week and the S&P 500 up over 3%. ^[26]
A Benzinga midday recap puts Dell among the top gainers in the Russell 1000, noting the stock was up about 6.4% at $134 as investors piled into tech and AI names ahead of Thanksgiving. ^[27]
Investopedia’s live market coverage likewise lists Dell as a notable post‑earnings mover, up around 6% alongside other earnings‑driven winners. ^[28]

Put simply: Dell’s company‑specific AI story is unfolding on a day when risk appetite across equities—especially in technology—is already strong.

Key Dell stock news from November 26, 2025

A number of outlets have weighed in on Dell today, each emphasizing different angles of the story:

Premarket reaction & AI narrative:
- The Tokenist explained why Dell surged over 4% in premarket trading, pointing to record Q3 revenue, $12.3 billion in AI server orders, and the boosted $25 billion AI shipment forecast as the primary catalysts. ^[29]
Post‑earnings rally analysis:
- A Motley Fool piece (via Nasdaq) framed the move as evidence that worries about an “AI spending slowdown” were overdone, noting the 5–6% early‑session rally after the company delivered better‑than‑expected profits and reaffirmed a robust AI pipeline. ^[30]
Q3 breakdown & AI server lens:
- Constellation Research highlighted how infrastructure solutions, particularly AI‑optimized servers, are powering growth, with traditional server demand also improving in North America and EMEA and all‑flash storage seeing double‑digit demand. ^[31]
Street reaction & valuation:
- Investing.com focused on UBS’s price‑target cut to $167 while maintaining a Buy, pointing out that despite some softness in non‑AI segments, Dell’s AI server revenue of $5.6 billion and guidance for $9.4 billion of AI revenue in Q4 support a P/E in the high‑teens and a PEG ratio below 1.0. ^[32]
PC & Windows 11 context:
- The Register drilled into Dell’s comments on the sluggish Windows 11 transition, the prospect of a “flattish” PC market, and the growing importance—and complexity—of managing memory and supply‑chain constraints as AI drives demand for denser, more memory‑intensive servers. ^[33]
Gap‑up trading & consensus view:
- Another MarketBeat “instant alert” detailed how Dell gapped up from $125.92 to an open around $133–134, reaffirmed its FY26 EPS guidance of $9.92, and maintained a consensus price target around the low‑$160s with a “Moderate Buy” rating. ^[34]

Together, these reports paint a consistent picture: Dell’s AI infrastructure business is firing on all cylinders, PC growth is steady but unspectacular, and the market is currently willing to reward AI‑driven upside even in the face of a slight top‑line revenue miss.

What today’s move could mean going forward

From a narrative perspective, today’s price action suggests:

AI credibility over AI hype: Dell’s story is about orders, shipments, and revenue, not just AI buzzwords. The company is booking tens of billions in AI server demand, raising shipment guidance, and converting it into double‑digit revenue and earnings growth. ^[35]
Execution risk remains: Delivering on a $25 billion AI shipment target, managing memory and component costs, and scaling complex deployments will be operationally demanding—especially as competitors chase the same opportunity. ^[36]
PC and non‑AI businesses still matter: A prolonged period of “roughly flat” PC demand or slower growth in traditional infrastructure could weigh on results if AI orders eventually normalize. ^[37]
Valuation is less extreme than some AI peers: With a high‑teens earnings multiple, a sub‑1 PEG ratio, and a dividend yield around 1.6–1.7%, Dell looks more like a growth‑at‑a‑reasonable‑price AI infrastructure name than a high‑flyer priced for perfection. ^[38]

For now, the market’s verdict on November 26, 2025 is clear: Dell Technologies has reinforced its status as a major beneficiary of the AI infrastructure build‑out, and investors are rewarding that momentum with one of the stock’s strongest sessions in months.

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Always do your own research or consult a licensed financial professional before making investment decisions.

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