Dell's Insane Numbers Terrified Me - In The Best Way Possible (Downgrade)

Dell Technologies Inc. delivered a blowout Q2 FY27, with revenue up 58% YoY and adjusted EPS surging 203% to $7.04. AI infrastructure demand is driving unprecedented growth, with $60.9B in new AI server orders and a $95B AI backlog this quarter. Management raised FY27 guidance dramatically: revenue to $192B (+70% YoY) and non-GAAP EPS to $25.50 (+150% YoY). Despite historic growth, DELL’s valuation remains in line with sector medians, but any AI spending slowdown poses significant downside risk.

Dell Technologies Inc. ( DELL ) is among my winning picks of 2026, a stock that I have held since my last coverage in October 2025 and was long due for an update. When