Dell Technologies (NYSE:DELL) has been steadily climbing back up from its post-Liberation Day nadir in early April. Though its share price is still slightly down year-to-date, DELL has risen over 50% since reaching a 52-week low last month.
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There are plenty of AI-related hopes attached to Dell, which recently announced new servers that will be powered by Nvidia’s Blackwell chips. The company’s management has guided for “at least $15 billion” for AI server shipments in Fiscal Year 2026, a strong indication that the company is well on its way to enjoying the fruits of the AI bonanza.
Indeed, the company has revealed a $9 billion AI server backlog. As the company prepares to unveil its Q1 FY 2026 numbers later this week on May 29, one investor known by the pseudonym Oakoff Investments sees dollar signs up ahead.
“Dell Technologies Inc.’s upcoming Q1 FY2026 earnings are poised as a significant catalyst, expected to build on Q4’s robust ISG [Infrastructure Solutions Group] performance and a rapidly expanding AI server backlog,” states the investor.
Oakoff is positively bullish regarding DELL’s AI prospects, believing that the $15 billion figure is only a “starting point” for the company. Last quarter, ISG enjoyed an EBIT margin of 18.1%, which was significantly higher than the 8% margin from Q1 FY 2025 – another sign that AI growth is “firing on all cylinders.”
Moreover, the investor is optimistic that the company’s Client Solutions Group could also deliver for DELL. Oakoff notes that the PC installed base is getting older, while the end of support for Windows 10 in October will mean that at least half a billion PCs could be in need of an upgrade.
“Dell’s market standing in AI PCs is only going to progress and add another layer of top-line growth,” adds Oakoff.
Further sweetening the pot, according to the investor’s calculations, the company is severely undervalued, and could appreciate by some 32% going forward. A strong Q1 report should be part of this multiple expansion.
“The upcoming Q1 report should bring back optimism,” concludes Oakoff Investments, who rates DELL a Buy. (To watch Oakoff Investment’s track record, click here)
Wall Street is also projecting optimism prior to DELL’s earnings report. With 12 Buy and 3 Hold ratings, DELL enjoys a Strong Buy consensus rating. Its 12-month average price target of $133.56 has an upside just shy of 20%. (See DELL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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