Part 3/12:
Dell's updated guidance exemplifies how the company's server and PC business is benefiting from broader AI infrastructure deployment. As more data centers emerge to support AI activities, demand for servers and related hardware increases, positioning Dell as a key player in this evolving landscape. Earnings per share grew 17% year-over-year, and Dell responded by raising its profit guidance for the upcoming quarter. Despite these positives, Dell’s valuation remains modest—an 11x PE ratio—primarily because it lacks proprietary or cutting-edge products and must compete aggressively on price and service, similar to other manufacturers like Super Micro.