2026 Sees Surge in AI Infrastructure Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 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: 116.090
Low
113.00
Averages
164.85
High
180.00
Current: 116.090
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.
Meta's Billions for Nvidia Chips Revitalize Market Confidence
- Market Confidence Revived: Meta's commitment to invest billions in Nvidia chips not only provides a much-needed financial boost to Nvidia but also has the potential to reshape market perceptions of its technological advantages, thereby enhancing its stock performance.
- Competitive Landscape Shift: With Meta's investment, Nvidia is likely to regain investor attention, prompting a reassessment of its core position in the AI sector, especially in light of competitive threats from companies like Google.
- Product Portfolio Advantage: Meta plans to utilize not only Nvidia's GPUs but also deploy its CPUs independently, indicating the significant value of Nvidia's product portfolio in meeting Meta's growing computational demands.
- Long-Term Value Consideration: CEO Mark Zuckerberg emphasizes the importance of evaluating the
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Investment Opportunities in Dell Technologies and Broadridge
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- Market Share Advantage: Broadridge Financial Solutions holds an 80% market share in investor communications, and despite facing uncertainties, its high switching costs and complexity create a strong moat; in the most recent quarter, revenue grew by 10% and adjusted earnings jumped by 21% year-over-year.
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- Massive Capital Expenditure: In 2026, major tech companies are projected to invest $650 billion in capital expenditures, surpassing the combined spending of 21 major U.S. automakers and energy firms, reflecting immense confidence and enthusiasm for AI investments across the industry.
- Market Reaction and Risks: While the market remains optimistic about AI's potential, concerns about the timeline for returns and economic viability are intensifying, particularly as these companies face high expenditures and the looming risk of an economic bubble.
- Cloud Business Growth: Google Cloud's business grew by 48% over the past year with a 30% operating margin, indicating that while making substantial investments, cloud services remain a crucial revenue pillar for the company, potentially driving further income growth in the future.
- Semiconductor Sector Beneficiaries: As big tech ramps up spending on servers and semiconductors, companies like Nvidia and ASML are expected to be major beneficiaries, with their revenues and margins likely to see significant boosts in the short term, further solidifying their market positions.
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- 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.
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- 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
Meta's Billions for Nvidia Chips Revitalize Market Confidence
- Market Confidence Revived: Meta's commitment to invest billions in Nvidia chips not only provides a much-needed financial boost to Nvidia but also has the potential to reshape market perceptions of its technological advantages, thereby enhancing its stock performance.
- Competitive Landscape Shift: With Meta's investment, Nvidia is likely to regain investor attention, prompting a reassessment of its core position in the AI sector, especially in light of competitive threats from companies like Google.
- Product Portfolio Advantage: Meta plans to utilize not only Nvidia's GPUs but also deploy its CPUs independently, indicating the significant value of Nvidia's product portfolio in meeting Meta's growing computational demands.
- Long-Term Value Consideration: CEO Mark Zuckerberg emphasizes the importance of evaluating the
See More
Investment Opportunities in Dell Technologies and Broadridge
- Dell's Growth Momentum: Dell Technologies reported a 37% year-over-year revenue increase in its networking and servers segment for the latest quarter, with a combined growth of 43% in the first three quarters, driven by AI infrastructure demand outpacing supply, and expects AI shipments to reach $25 billion in fiscal 2026, a 150% increase from the previous year.
- Market Share Advantage: Broadridge Financial Solutions holds an 80% market share in investor communications, and despite facing uncertainties, its high switching costs and complexity create a strong moat; in the most recent quarter, revenue grew by 10% and adjusted earnings jumped by 21% year-over-year.
- Attractive Stock Valuation: Dell's stock trades at a mere 15x earnings and 9x forward earnings, with a five-year PEG ratio of 0.46 indicating undervaluation; Broadridge's stock is also appealing at 18x earnings following a recent sell-off.
- Analysts Favorable Outlook: Analysts set a median price target of $165.50 for Dell, suggesting a 41% upside from current levels; approximately two-thirds of analysts rate Broadridge as a buy, with a target price indicating a similar 41% increase over the next 12 months.
See More
Analysis of Big Tech's $650 Billion AI Investment
- Massive Capital Expenditure: In 2026, major tech companies are projected to invest $650 billion in capital expenditures, surpassing the combined spending of 21 major U.S. automakers and energy firms, reflecting immense confidence and enthusiasm for AI investments across the industry.
- Market Reaction and Risks: While the market remains optimistic about AI's potential, concerns about the timeline for returns and economic viability are intensifying, particularly as these companies face high expenditures and the looming risk of an economic bubble.
- Cloud Business Growth: Google Cloud's business grew by 48% over the past year with a 30% operating margin, indicating that while making substantial investments, cloud services remain a crucial revenue pillar for the company, potentially driving further income growth in the future.
- Semiconductor Sector Beneficiaries: As big tech ramps up spending on servers and semiconductors, companies like Nvidia and ASML are expected to be major beneficiaries, with their revenues and margins likely to see significant boosts in the short term, further solidifying their market positions.
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
