S&P 500 and Nasdaq composite futures indexes are up by +0.09%*& +0.52%respectively.
On that note, Dell is poised to open higher too by +0.77%. (see attached)
Let's hope it's a good first week of September 2026 closing.
DELL, the next Magnificent 7 ? Really ?
@JC888：
For years, $Dell Technologies Inc.(DELL)$ was viewed primarily as a mature PC and enterprise hardware company. It is profitable, well established and important to corporate IT departments, but hardly the type of dominant technology stock investors would place alongside $NVIDIA(NVDA)$ , $Microsoft(MSFT)$ or $Amazon.com(AMZN)$. Artificial intelligence (AI) buildout is rapidly changing that perception. Dell has emerged as one of the primary beneficiaries of the enormous buildout in AI infrastructure, supplying the servers, storage and networking equipment needed to turn billions of dollars of advanced semiconductors into functioning AI systems. Following its latest quarterly earnings report, the transformation is becoming difficult to ignore. Dell is now growing at rates normally associated with much younger technology companies, while its earnings outlook continues to improve rapidly. Could Dell eventually become a newest member of the Magnificent Seven ? Q2 Earnings - Explosive AI Growth On Tue, 01 Sep 2026, Dell's reported another exceptional quarter of earnings. Revenue climbed +58% YoY to a record $47.0 billion (see above), while adjusted earnings surged +203% to $7.04 per share. EPS also beat the many Wall Street estimates by more than +40%. (see below) Its Infrastructure Solutions Group, that houses Dell's servers, storage and networking products, was the clear driver. Segment revenue jumped +89% to $31.8 billio,. Operating income more than tripled (> +200% net gain) to a record $4.8 billion. (see below) For Q2 2027, Dell generated $16.4 billion of AI-optimized server revenue, while AI server orders reached a record $60.9 billion. Even after delivering enormous volumes of equipment, the company exited the quarter with an incredible AI server backlog of $95 billion . That backlog gives Dell considerable visibility into future growth and prompted management to raise its fiscal 2027 revenue forecast to $192 billion. This represents approx. +69% YoY growth. Management also expects adjusted EPS of $25.50, up +148%. Magnificent 7 Qualification ? There is obviously no formal definition or membership committee for the Magnificent Seven. The term simply became shorthand for Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla, a collection of enormous technology companies that combined market leadership, dominant competitive positions and exceptional earnings growth. By that standard, Dell still falls short in two main categories. Dell's market capitalization has climbed to roughly $334 billion. It is a massive company in almost any normal context, but remains considerably smaller than the trillion-dollar-scale companies that dominate the Magnificent Seven. Dell also lacks some of the characteristics that distinguish several members of the group. For instance MSFT, GOOG, META & AMZN operate near or full monopoly positions in software, advertising or cloud platforms with exceptionally high incremental margins. NVDA enjoys extraordinary economics as the leading designer of AI accelerators. Dell remains fundamentally a hardware & infrastructure company, meaning margins are structurally lower and the business requires considerably more working capital, with clear direct competitors. So Dell probably does not deserve to be called the 8th Magnificent Seven stock just yet, although when it comes to growth, the comparison is far more reasonable. With latest revenue just increased +58%, earnings grew more than +200%. Its AI infrastructure demand continues to exceed Dell's ability to ship systems, and its backlog now stretches deep into future quarters. The company may not have Magnificent Seven economics, but it is has been producing returns superior to the group. Earnings Outlook Continues to Improve The other attractive feature is that Wall Street may still be catching up to the magnitude of Dell's transformation. Dell currently carries a Buy rating, reflecting the positive trend in analyst earnings estimate revisions. With the latest substantial earnings beat and another major increase to management's outlook, there is a good chance analysts will continue raising estimates as they incorporate the latest results. That earnings momentum becomes particularly interesting when compared with Dell's valuation. Shares trade at roughly 25.6x forward earnings, while analysts forecast 30.5% annual EPS growth over the long term. For a company growing earnings at that rate, a mid-20s earnings multiple does not appear especially demanding. There are risks certainly: Dell's hardware-heavy business will likely never command the margins of a software platform. Investors should expect some cyclicality, as AI infrastructure buildout matures. However, the combination of (a) accelerating earnings, (b) enormous backlog visibility and (c) continued positive estimate revisions gives the stock a compelling setup even after its tremendous run. $Hewlett Packard Enterprise(HPE)$ - Comparatively speaking. Dell's results also look considerably more convincing when viewed alongside its ‘competitor’ HPE. HPE competes across many of the same broad markets, including servers, storage, networking and AI infrastructure. Its latest results also showed similarly strong demand. HPE's fiscal Q3 2026 revenue jumped +33.7% to a record $12.2 billion, while adjusted EPS increased +152% and exceeded Wall Street estimate by nearly +17%. Cloud & AI revenue increased +25% to $9.0 billion, while server revenue climbed more than +35%. Equally important, HPE also reported strengthening AI demand. AI systems orders reached $2.4 billion during the quarter, while backlog climbed to a record level. Management also subsequently raised both its fiscal 2026 outlook and its fiscal 2027 growth framework. When 2 major suppliers of enterprise computing infrastructure simultaneously report accelerating server demand, expanding AI backlogs and improving earnings outlooks, it becomes harder to dismiss Dell's growth as a temporary company-specific surge. Instead, the results suggest the enormous AI capital-spending cycle continues to work its way through the broader technology supply chain. Its also worth noting that Hewlett Packard enjoys a similarly appealing fundamental setup as Dell, with a Buy rating and a 15x forward earnings multiple and long term EPS growth forecasts just under +30%. Dell or HPE ? (1) Overall summary. DELL outperformed HPE by roughly 104% over the 26-month window, with both delivering multi-bagger returns. (see above) (2) Market caps matter. Dell's market cap is about $333 billion vs HPE's $72 billion, with the former 4.8× larger . Usually, larger companies grow more slowly in percentage terms because of the law of large numbers. However, Dell is delivering the higher return despite being nearly 5x bigger. This signals a genuine fundamental re-rating, not a small-cap optical effect. Dollar terms, Dell added over $250 billion in market cap versus roughly $40 billion for HPE; with the former creating about 6x more shareholder wealth in absolute terms. (3) Budget-based investment. Price accessibility. One HPE share costs ~$54 vs Dell's ~$516. A $1,000 outlay, buys about 18 HPE shares or fewer than 2 Dell shares. On a whole-share basis, HPE is clearly more accessible. But share price ≠ affordability. Share price is arbitrary and it reflects share-count decisions (splits, buybacks etc…), not valuation. What really matters: (a) Fractional shares Most modern brokers (Tiger, Moo moo, Hood) offer fractional trading, making share price irrelevant . A modes $500 budget buys a proportional slice of either stock. (b) Valuation, not price: Honestly, neither stock is cheap after the 2025–26 rally. Both are trading above historical multiples. Dell's richer multiple reflects higher growth; while HPE's lower multiple reflects slower growth and Juniper integration risk. (c) Volatility: Dell's sharper run-up means higher pullback risk. For instance, it moved a staggering -13% in a single day in August 2026. HPE offers lower-volatility exposure and what’smore it pays a dividend of about $0.52 /share or about 1% yield). Bottom line: If investors cannot use fractional shares, HPE is the more affordable buy with ‘accessible’ price, dividend, lower volatility. If fractional shares are available, Dell is the better-quality holding; with superior fundamentals and returns make share price irrelevant. That said, the sharper run-up demands higher risk tolerance. The ideal small-budget approach: buy a fractional slice of Dell and keep capital diversified rather than concentrating everything in one name. Dell a Mag 7 ? Hard facts. Dell probably is not ready to replace AAPL, NVDA or MSFT in the Magnificent Seven. Its market capitalization remains considerably smaller, its margins are lower and the hardware business does not have quite the same economic characteristics as the platforms and franchises that dominate the group. More important question for investors is not whether Dell earns an unofficial nickname, its whether the company's earnings power has undergone a lasting transformation ? So far, the evidence is increasingly compelling. Dell is sitting on $95 billion of AI server backlog, management just sharply raised its outlook, analysts continue to increase earnings expectations and the stock trades at a valuation that still appears reasonable relative to its expected earnings growth. At the same time, HPE's strong results provide additional evidence that AI infrastructure cycle remains exceptionally healthy, while also trading at appealing levels. Dell may not technically be the newest member of the Magnificent Seven, but if current earnings trajectory continues, investors may increasingly start treating it like one. Agree ? Remember to check out my other posts. (See below). Help to Repost ok, Thanks. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Surge US Bond Yields Crushing Tech Stocks ? Weak economy, US Market at risk but Oil ? Rising US Fed Rates Crash Stock Market ? Do you think HPE is the better buy, if budget is a considerations ? Do you think actually both stocks are a “Buy”, despite the difference in returns ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. Thank you. @Daily_Discussion @TigerPM @TigerStars @Tiger_SG @TigerEvents
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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