Dell Technologies leverages its partnership with Nvidia to secure a $95 billion AI server backlog, positioning the stock as a high-growth, value-oriented play in the expanding artificial intelligence infrastructure market.
Dell's AI server backlog reached $95 billion with orders exceeding revenue, and it trades at a discount to the Nasdaq-100.
Nvidia's revenue more than doubled and it projects $3-4 trillion in AI infrastructure spending by 2030, sustaining its growth.
The Nasdaq-100's forward earnings multiple is used as a benchmark to highlight Dell's valuation discount.
Dell Technologies is emerging as a primary beneficiary of the AI infrastructure supercycle, reporting a record $95 billion backlog for its Nvidia-powered servers. With revenue growing 58% and shares trading at a valuation discount to the Nasdaq-100, analysts see significant long-term upside as the company converts massive order volumes into sustained earnings growth.
Dell manufactures rack-scale servers specifically engineered for Nvidia's latest AI chip architectures, making it a critical hardware partner for hyperscalers deploying AI infrastructure.
Dell currently trades at approximately 20 times forward earnings, which represents a discount relative to the Nasdaq-100 index's forward earnings multiple of 25.