DELL's CSG Revenues Rise: Is an Improving PC Market the Catalyst?
Dell Technologies is a prominent PC maker and is expected to benefit from the recovering demand driven by the PC-refresh cycle. The company is benefiting from the Windows 11 PC refresh cycle as many enterprise customers upgrade to new AI-capable Windows 11 devices, driving strong demand in the commercial segment. In the first quarter of fiscal 2026, CSG revenues were $12.50 billion, up 5% year over year.
DELL is also benefiting from an expanding partner base that includes NVIDIA, Microsoft, Meta Platforms and Imbue. In March, Dell Technologies and NVIDIA expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales.
Dell Technologies recently partnered with Lowe's to enhance customer and associate experiences by deploying advanced AI and PC technologies. Using Dell AI Factory with NVIDIA and high-performance Dell devices, Lowe's is optimizing inventory, improving asset protection, and streamlining store operations across its network.
In March 2025, Dell Technologies and NVIDIA also expanded their AI Factory collaboration, introducing new AI PCs, infrastructure, software, and services to accelerate enterprise AI adoption across various scales.
DELL Faces Stiff Competition in the PC Market
Dell Technologies suffers from stiff competition in the PC market from the likes of HP HPQ and Apple AAPL.
HPQ is benefiting from a sustained focus on launching new and innovative products. The growing interest in generative artificial intelligence-enabled PCs, along with Windows 11 upgrades and a probable PC refreshment cycle, is likely to drive fresh demand for PCs in 2025.
The growing interest in generative AI-enabled PCs might give a fresh boost to HP's PC demand in the years ahead. The company forecasted that 40-60% of all PCs will be AI PCs in the next three years. To make the most of the growing opportunities in this category, HP has launched several AI PCs this year and plans to continue to expand its AI PC portfolio.
Apple's Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In March 2025, Apple expanded its Mac portfolio with the new MacBook Air powered by the M4 chip with up to 18 hours of battery life and a new 12MP Center Stage camera.
DELL's Share Price Performance, Valuation and Estimates
DELL's shares have risen 1.1% year to date, underperforming the broader Zacks Computer & Technology sector's return of 1.6%.
DELL Stock Performance
Image Source: Zacks Investment Research
DELL stock is trading at a premium, with a forward 12-month Price/Sales of 0.77X compared with the Computer & Technology sector's 6.36X. DELL has a Value Score of A.
DELL Valuation
The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at $2.26 per share, which has increased 11.5% in the past 30 days. This indicates a year-over-year increase of 19.58%.
The consensus mark for fiscal 2026 earnings is pegged at $9.43 per share, which increased 6.91% in the past 30 days. This suggests 15.85% year-over-year growth.
DELL currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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Conservatives want to win the AI race, but disagree on how Conservatives distrusting Big Tech for what they see as social media companies stifling speech during the COVID-19 pandemic and surrounding elections said that tech companies shouldn't get a free pass, especially on something that carries as much risk as AI. Many who opposed the moratorium also brought up preserving states' rights, though proponents countered that AI issues transcend state borders and Congress has the power to regulate interstate commerce. Eric Lucero, a Republican state lawmaker in Minnesota, noted that many other industries already navigate different regulations established by both state and local jurisdictions. 'I think everyone in the conservative movement agrees we need to beat China,' said Daniel Cochrane from the Heritage Foundation. 'I just think we have different prescriptions for doing so.' Many argued that in the absence of federal legislation, states were best positioned to protect citizens from the potential harms of AI technology. 'We have no idea what AI will be capable of in the next 10 years and giving it free rein and tying states hands is potentially dangerous,' Rep. Marjorie Taylor Greene wrote on X. A call for federal rules Another Republican, Texas state Sen. Angela Paxton, wrote to Cruz and his counterpart, Sen. John Cornyn, urging them to remove the moratorium. She and other conservatives said some sort of federal standard could help clarify the landscape around AI and resolve some of the party's disagreements. Wednesdays Columnist Jen Zoratti looks at what's next in arts, life and pop culture. But with the moratorium dead and Republicans holding only narrow majorities in both chambers of Congress, it's unclear whether they will be able to agree on a set of standards to guide the development of the burgeoning technology. In an email to The Associated Press, Paxton said she wants to see limited federal AI legislation 'that sets some clear guardrails' around national security and interstate commerce, while leaving states free to address issues that affect their residents. 'When it comes to technology as powerful and potentially dangerous as AI, we should be cautious about silencing state-level efforts to protect consumers and children,' she said. ___ Associated Press writer Matt Brown in Washington contributed to this report.
