3. Dell Technologies Inc. (NYSE:DELL)
Dell Technologies Inc. (NYSE: DELL) ranks third because the company is demonstrating that the AI server boom is translating into actual orders, revenue and profit—not merely optimistic forecasts. In its latest reported quarter, Dell Technologies Inc. (NYSE: DELL) booked $24.4 billion in artificial intelligence orders and recognized $16.1 billion in AI-optimized server revenue. Total quarterly revenue reached a record $43.8 billion, increasing 88% from the previous year. astructure Solutions Group produced $29 billion in revenue, up 181%, while operating income from the segment increased 206% to approximately $3.1 billion. Traditional server and networking revenue also increased 92%, demonstrating that demand is not limited to specialized AI systems. Storage revenue grew more modestly but still reached a first-quarter record. Dell Technologies Inc. (NYSE: DELL) raised its full-year AI-server revenue expectation to approximately $60 billion and increased its total fiscal 2027 revenue forecast to a midpoint of $167 billion. mbers help explain why analysts remain optimistic. The bullish argument is straightforward: when another AI server manufacturer reports strong preliminary demand, Dell Technologies Inc. (NYSE: DELL) may be positioned to perform even better because of its greater scale, established supply chain, enterprise relationships, financing capabilities and global services organization. The upside catalyst-watch framing cited by Citi captures the belief that Wall Street estimates may still underestimate earnings momentum.
Dell Technologies Inc. (NYSE: DELL) is also broader than a pure server assembler. It can provide compute, storage, networking, cybersecurity, data-management tools, personal computers and financing as part of a complete enterprise AI infrastructure package. Many companies prefer to purchase an integrated solution from a familiar vendor rather than assemble individual components from multiple suppliers.
The risk is that AI server revenue can carry thinner margins than investors expect, particularly when expensive GPUs and memory account for a large percentage of the final system’s cost. Component shortages, changing memory prices and customer concentration could also affect profitability. Dell Technologies Inc. (NYSE: DELL) must prove that its rapidly expanding revenue will consistently translate into free cash flow and higher earnings per share.
For now, execution appears excellent. Dell Technologies Inc. (NYSE: DELL) is not simply waiting for enterprise AI adoption; it is already shipping billions of dollars of equipment. The combination of record orders, raised guidance, improving operating income and a massive AI backlog makes it one of the best AI infrastructure stocks to watch.
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