Demand for AI infrastructure continues to rise, repositioning Dell from a traditional PC manufacturer to a major technology company. As of the close on September 4, Dell’s stock price stood at $524.14, up approximately 316% since 2026, with its market capitalization increasing by about $255 billion since the end of 2025 to reach $338.7 billion.
Order growth raises market expectations
Over the past 12 months, Dell has converted approximately $131.7 billion in AI demand into orders. Management stated that the current pipeline remains significantly larger than backlog orders, and the number of AI customers has exceeded 6,500.
Against this backdrop, the company raised its full-year financial guidance. Dell increased its full-year revenue forecast from $167 billion to $192 billion and raised its adjusted earnings per share guidance from $17.90 to $25.50.
AI servers are not the only thing growing
This rally is not driven solely by AI server business. Dell’s traditional server and networking revenue increased by 122%, and its storage revenue rose by 26%, indicating that the expansion of data center infrastructure is benefiting multiple product lines simultaneously.
As a result, market focus has shifted. For Dell, long regarded as a PC manufacturer, investors now place greater emphasis on its role in AI computing, networking, and storage.
Inclusion in the S&P 100 on September 21
Dell will join the S&P 100 on September 21, alongside Palo Alto Networks, Arista Networks, and SanDisk. Companies being removed from the index include Honeywell Aerospace, Nike, Simon Property Group, and Colgate-Palmolive.
This adjustment reflects a shift in the composition of large U.S. equities, with companies related to the internet, storage, cybersecurity, and AI computing entering core index components more rapidly.
However, after the significant rally, Dell's valuation has risen noticeably. Based on expected earnings, the company's current forward P/E ratio is approximately 18.6x. The report notes that analysts' average target price is around $564, indicating that the potential upside from current levels has narrowed considerably compared to the year-to-date gain.