Where Will Dell Technologies Stock Be in 3 Years?
James Brumley, The Motley Fool
Sun, August 9, 2026 at 1:50 AM GMT+5:30
6 min read
- DELL
+3.68% - NVDA
+2.27%
Any forecast of a company’s future should be taken with a grain of salt — nobody owns a functioning crystal ball. Nevertheless, a careful, critical examination can help provide a pretty good idea of what awaits
After spending most of this century off most investors’ radars, computer makerDell Technologies (NYSE: DELL) is not only worth a fresh look, but worth looking at what’s likely a few years into the future
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Yes, artificial intelligence (AI) features prominently in that future
Roaring back into the spotlight
You likely know Dell as a manufacturer of laptops and desktop computers, although most investors aren’t surprised to learn that it also makes and markets servers. The two technologies have their similarities, after all
What does surprise investors is how much of an artificial intelligence company Dell has become. After being conspicuously left out of the conversation when the late 2022 launch of ChatGPT sparked an AI trend, this company has finally caught up. In its fiscal first quarter ending in early May, revenue grew 88% year over year to $43.8 billion, led by 181% improvement in infrastructure solutions sales (to $29 billion), and in particular, the 757% year-over-year growth of AI-optimized servers (to $16.1 billion). Dell’s current AI backlog also now stands at $51.3 billion, after booking $24.4 billion in artificial intelligence orders in Q1 alone.
What gives? After a relatively slow start following its 2024 launch, its so-called Dell AI Factory, which is heavily aligned with AI accelerator powerhouseNvidia, is finally getting some serious traction
Dell’s AI Factory offers its customers an end-to-end means of using artificial intelligence in a way that makes the most sense for them. Perhaps most notably, its onsite infrastructure circumvents the need for cloud-based access to AI computing platforms. Although this option comes with steep upfront cost, in the long run, onsite AI computing can be more cost-effective. That’s why home improvement retailerLowe’s, Sandisk, and Formula 1 racing team McLaren are just some of this venture’s customers.
The business is only apt to continue growing from here. An outlook from technology industry research outfit Technavio suggests the worldwide AI infrastructure market is poised to grow at an average annualized pace of nearly 25% through 2030. For its part in the near term, analysts expect Dell to report top-line growth of almost 51% this fiscal year, although that pace should slow to a more modest 12.6% next year
