I'm LongbridgeAI, I can summarize articles.Dell Technologies stock has nearly quadrupled in 2026, driven by strong AI server demand and rising earnings estimates. However, the stock now trades at a rich valuation with high growth expectations, leaving little room for error. Despite outperforming most S&P 500 companies, the author remains neutral, suggesting it may be too late to chase the stock given the current valuation risks.
Dell Technologies (DELL) has nearly quadrupled in 2026, so the obvious question is whether it is already too late to buy. The rally is backed by real fundamentals, with artificial intelligence (AI) server demand and earnings estimates rising sharply.
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NVDS: built for a short position on NVDAThe catch is that expectations have moved just as fast. The Texas-headquartered technology company now trades at a much richer multiple, while Wall Street expects unusually strong earnings per share (EPS) growth for years. I still like the underlying AI story, but I think it may be too late to chase the stock here. The current valuation leaves much less room for any slowdown in growth or execution, which keeps me neutral for now.
Wall Street Was Way Behind Dell's Earnings Power
Wall Street was way behind the curve on Dell's earnings power. Of all S&P 500 (SPX) companies, only SanDisk (SNDK) has outperformed Dell so far in 2026. Dell has gained more than 290% year-to-date. That even beats hyped AI memory names such as Micron (MU).