2026 Sees Surge in AI Infrastructure Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy DELL?
Source: Fool
- Capital Expenditure Plans: The four major hyperscalers are set to invest approximately $650 billion in capital expenditures in 2026, with a significant portion allocated to AI infrastructure, reflecting strong confidence in future financial outcomes.
- Surge in Dell Demand: Dell Technologies reported all-time high orders for AI servers in its fiscal Q3 2026, with a backlog of $18.4 billion, indicating a rapid increase in market demand for its AI products.
- Google's Spending Details: Alphabet plans to allocate at least $175 billion in capital expenditures in 2026, with about 60% directed towards servers, creating a substantial tailwind for the entire server market, particularly benefiting companies like Dell indirectly.
- Investment Value Analysis: Dell's stock trades at less than 11 times its forward earnings, indicating a reasonable valuation; combined with stable business performance and high demand, it presents a low-risk investment opportunity, especially amid surging AI server demand.
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Analyst Views on DELL
Wall Street analysts forecast DELL stock price to rise
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 112.820
Low
113.00
Averages
164.85
High
180.00
Current: 112.820
Low
113.00
Averages
164.85
High
180.00
About DELL
Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its ISG segment enables the Company’s customer’s digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi cloud environments. Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. Its CSG segment offers branded personal computers (PCs) including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Bridgewater Associates Reveals New Investment Positions
- New Investment Moves: Bridgewater Associates acquired 62,200 shares of Caterpillar (CAT), 156,300 shares of Dell Technologies (DELL), and 23,500 shares of Spotify (SPOT) in Q4 2025, indicating confidence in these companies which may drive their stock prices higher.
- Position Adjustments: The firm closed its holdings in AT&T (T), Annaly Capital Management (NLY), Affirm Holdings (AFRM), and Aehr Test Systems (AEHR), reflecting a cautious outlook on these companies, which could impact their market performance.
- Increased Stakes: Bridgewater raised its stake in Nvidia (NVDA) from 2.51 million shares to 3.87 million shares and Amazon (AMZN) from 1.12 million to 1.95 million shares, demonstrating ongoing optimism in tech stocks that may enhance its investment portfolio in the sector.
- Trimmed Holdings: The fund reduced its positions in Salesforce (CRM) from 2.01 million shares to 1.93 million and Microsoft (MSFT) from 1.10 million to 984,000 shares, indicating a cautious stance on future growth prospects which may affect stock price stability.
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Dell to Host Q4 and Full-Year 2026 Financial Results Call on February 26, 2026
- Conference Call Announcement: Dell Technologies will hold a conference call on February 26, 2026, at 3:30 p.m. CST to discuss its fiscal 2026 fourth quarter and full-year financial results, which is expected to provide critical financial data and future guidance.
- Public Webcast Availability: The conference will be available as a live audio-only webcast on Dell's website, enhancing transparency and providing investors with direct access to important information.
- Financial Results Release: Prior to the call, Dell will issue a press release with financial results and accompanying statements, ensuring that investors have the necessary financial information ahead of the meeting to make informed investment decisions.
- Commitment to Technology and Services: Dell Technologies is committed to providing customers with the broadest and most innovative technology and services portfolio, particularly in the AI era, emphasizing its crucial role in building a digital future.
See More
2026 Sees Surge in AI Infrastructure Investment
- Capital Expenditure Plans: The four major hyperscalers are set to invest approximately $650 billion in capital expenditures in 2026, with a significant portion allocated to AI infrastructure, reflecting strong confidence in future financial outcomes.
- Surge in Dell Demand: Dell Technologies reported all-time high orders for AI servers in its fiscal Q3 2026, with a backlog of $18.4 billion, indicating a rapid increase in market demand for its AI products.
- Google's Spending Details: Alphabet plans to allocate at least $175 billion in capital expenditures in 2026, with about 60% directed towards servers, creating a substantial tailwind for the entire server market, particularly benefiting companies like Dell indirectly.
- Investment Value Analysis: Dell's stock trades at less than 11 times its forward earnings, indicating a reasonable valuation; combined with stable business performance and high demand, it presents a low-risk investment opportunity, especially amid surging AI server demand.
See More
Cisco Shares Plunge Due to Rising Memory Prices
- Significant Stock Drop: Cisco shares plummeted by as much as 12% on Thursday, marking the worst single-day decline since 2022, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global memory shortage, driven by strong demand for AI chips from Nvidia, poses challenges for Cisco as production costs soar, particularly with large data center memory orders limiting the production capacity for other devices, further exacerbating market uncertainty.
- Lackluster Financial Outlook: Although Cisco reported better-than-expected quarterly results, the stock still dropped about 7% due to the company issuing a mediocre forecast, indicating insufficient investor confidence in future growth prospects.
- Strategic Response Adjustments: CEO Chuck Robbins stated that Cisco will respond to rising memory prices by raising prices, revising contracts, and renegotiating terms, while CFO Mark Patterson emphasized controlling what can be controlled to mitigate cost pressures.
See More
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- Stock Plunge: Cisco shares fell 12% on Thursday, marking the largest single-day drop in four years, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global shortage of memory, driven by strong demand for AI chips, has skyrocketed component costs, affecting Cisco and other tech companies, including Apple and Dell, which are also feeling the pinch from increased expenses.
- Financial Response: CEO Chuck Robbins stated during the earnings call that Cisco will raise prices, revise contracts, and negotiate terms to adapt to evolving component prices, aiming to control what can be managed amid rising costs.
- Declining Gross Margin: Although Cisco reported better-than-expected quarterly results, its product gross margin fell to 66.4%, down 130 basis points from the previous year, highlighting the challenges the company faces in managing rising costs.
See More
Wall Street Tech Stocks Lose Over $500 Billion in Value
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
See More
Bridgewater Associates Reveals New Investment Positions
- New Investment Moves: Bridgewater Associates acquired 62,200 shares of Caterpillar (CAT), 156,300 shares of Dell Technologies (DELL), and 23,500 shares of Spotify (SPOT) in Q4 2025, indicating confidence in these companies which may drive their stock prices higher.
- Position Adjustments: The firm closed its holdings in AT&T (T), Annaly Capital Management (NLY), Affirm Holdings (AFRM), and Aehr Test Systems (AEHR), reflecting a cautious outlook on these companies, which could impact their market performance.
- Increased Stakes: Bridgewater raised its stake in Nvidia (NVDA) from 2.51 million shares to 3.87 million shares and Amazon (AMZN) from 1.12 million to 1.95 million shares, demonstrating ongoing optimism in tech stocks that may enhance its investment portfolio in the sector.
- Trimmed Holdings: The fund reduced its positions in Salesforce (CRM) from 2.01 million shares to 1.93 million and Microsoft (MSFT) from 1.10 million to 984,000 shares, indicating a cautious stance on future growth prospects which may affect stock price stability.
See More
Dell to Host Q4 and Full-Year 2026 Financial Results Call on February 26, 2026
- Conference Call Announcement: Dell Technologies will hold a conference call on February 26, 2026, at 3:30 p.m. CST to discuss its fiscal 2026 fourth quarter and full-year financial results, which is expected to provide critical financial data and future guidance.
- Public Webcast Availability: The conference will be available as a live audio-only webcast on Dell's website, enhancing transparency and providing investors with direct access to important information.
- Financial Results Release: Prior to the call, Dell will issue a press release with financial results and accompanying statements, ensuring that investors have the necessary financial information ahead of the meeting to make informed investment decisions.
- Commitment to Technology and Services: Dell Technologies is committed to providing customers with the broadest and most innovative technology and services portfolio, particularly in the AI era, emphasizing its crucial role in building a digital future.
See More
2026 Sees Surge in AI Infrastructure Investment
- Capital Expenditure Plans: The four major hyperscalers are set to invest approximately $650 billion in capital expenditures in 2026, with a significant portion allocated to AI infrastructure, reflecting strong confidence in future financial outcomes.
- Surge in Dell Demand: Dell Technologies reported all-time high orders for AI servers in its fiscal Q3 2026, with a backlog of $18.4 billion, indicating a rapid increase in market demand for its AI products.
- Google's Spending Details: Alphabet plans to allocate at least $175 billion in capital expenditures in 2026, with about 60% directed towards servers, creating a substantial tailwind for the entire server market, particularly benefiting companies like Dell indirectly.
- Investment Value Analysis: Dell's stock trades at less than 11 times its forward earnings, indicating a reasonable valuation; combined with stable business performance and high demand, it presents a low-risk investment opportunity, especially amid surging AI server demand.
See More
Cisco Shares Plunge Due to Rising Memory Prices
- Significant Stock Drop: Cisco shares plummeted by as much as 12% on Thursday, marking the worst single-day decline since 2022, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global memory shortage, driven by strong demand for AI chips from Nvidia, poses challenges for Cisco as production costs soar, particularly with large data center memory orders limiting the production capacity for other devices, further exacerbating market uncertainty.
- Lackluster Financial Outlook: Although Cisco reported better-than-expected quarterly results, the stock still dropped about 7% due to the company issuing a mediocre forecast, indicating insufficient investor confidence in future growth prospects.
- Strategic Response Adjustments: CEO Chuck Robbins stated that Cisco will respond to rising memory prices by raising prices, revising contracts, and renegotiating terms, while CFO Mark Patterson emphasized controlling what can be controlled to mitigate cost pressures.
See More
Cisco Shares Plunge 12% Amid Margin Pressure from Rising Memory Prices
- Stock Plunge: Cisco shares fell 12% on Thursday, marking the largest single-day drop in four years, primarily due to rising memory prices exerting pressure on the company's margins, reflecting market concerns about its future profitability.
- Memory Shortage Impact: The global shortage of memory, driven by strong demand for AI chips, has skyrocketed component costs, affecting Cisco and other tech companies, including Apple and Dell, which are also feeling the pinch from increased expenses.
- Financial Response: CEO Chuck Robbins stated during the earnings call that Cisco will raise prices, revise contracts, and negotiate terms to adapt to evolving component prices, aiming to control what can be managed amid rising costs.
- Declining Gross Margin: Although Cisco reported better-than-expected quarterly results, its product gross margin fell to 66.4%, down 130 basis points from the previous year, highlighting the challenges the company faces in managing rising costs.
See More
Wall Street Tech Stocks Lose Over $500 Billion in Value
- Market Value Loss: On Thursday, Wall Street's tech sector saw over $500 billion wiped off market value across 10 major companies, indicating a sharp decline in investor confidence amid simultaneous pressures on both software and hardware sectors.
- Cisco Earnings Impact: Cisco's stock plummeted 11% despite reporting earnings of $1.04 per share, exceeding expectations, as the company’s gross margin guidance of 65.5%-66.5% fell short of the 68% consensus, highlighting the impact of rising hardware costs.
- Memory Shortage Risks: Lenovo confirmed mounting pressure on PC shipments, with CEO Yang Yuanqing stating that while unit pressures are expected, the company aims to maintain profitability, reflecting growing concerns over memory shortages in the industry.
- Software Sector Decline: The iShares Expanded Tech-Software Sector ETF dropped over 3% on Thursday, with the sector down over 20% year-to-date, illustrating the ongoing impact of fears surrounding AI disruption on software stock performance.
See More
