Stocks · fast growers
Dell turned $100,000 into about $459,930 this year by building the servers AI runs on.
Most people know Dell for laptops. The money this year came from somewhere else: racks of AI servers, packed with Nvidia chips, that Dell assembles, ships and installs for cloud companies, governments and big businesses. In its quarter ended July 31, 2026, Dell sold $16.4 billion of AI servers, double the $8.2 billion a year earlier. It booked a record $60.9 billion of new AI orders in that one quarter and ended it with $95 billion of orders still waiting to ship. Total sales were $47.0 billion, up 58%, and earnings per share were $6.34, up 273%. Dell then raised its full-year forecast by $25 billion, to $192 billion of sales, including $74 billion of AI servers, about three times last year.
Dec 31, 2025 close: $125.88 → $100,000 buys about 794 shares
Low close Jan 20: $111.07 → about $88,235 (it started the year by falling 12%)
May 29, the day after first-quarter results: +32.8% in one day; the stock doubled in May
Oct 7, 2026 close: $578.96 → about $459,930 (4.6×, +360%, price only, before dividends)
Record close Sep 17: $588.40; Oct 7 was 1.6% below it
A year ago (Oct 7, 2025 close $150.87): $100,000 would be about $383,748
Why it might not be done: Dell expects $25.50 of adjusted earnings per share this fiscal year, so today’s price is about 23 times that. That is not cheap, but it is far from bubble pricing for earnings growing this fast, and Dell says its pipeline of possible AI deals is still several times its $95 billion backlog.
The catch: Dell is mostly a builder, not the chip maker. After paying for the parts and making the product, it keeps about 21 cents of each sales dollar (21.1% adjusted gross margin last quarter, 20.9% under standard accounting). Sandisk, this morning’s card, kept about 85 cents. Thin margins leave little cushion if chip or memory costs jump, if big AI customers delay orders, or if rivals cut prices. The stock fell 21% between June 1 and July 29 this year while the business kept growing. The next test is third-quarter results, expected in late November; Dell has not announced the date yet. If you own it, size it so a 20–30% drop doesn’t force you to sell. For more ideas, see Insights; for where to park cash, see Savings.
Source: Nasdaq DELL historical closing prices ↗ ($125.88 on Dec 31, 2025; $111.07 on Jan 20, 2026; $317.05 on May 28 and $420.91 on May 29; $465.96 on Jun 1; $369.64 on Jul 29; $588.40 on Sep 17; $578.96 on Oct 7, 2026; $150.87 on Oct 7, 2025) · Dell fiscal Q2 2027 results, SEC Form 8-K Ex. 99.1, Sept 1, 2026 ↗ (AI-optimized server revenue $16,401M vs $8,208M, up 100%; record $60.9B AI orders; $95B AI backlog; revenue $46,971M vs $29,776M, up 58%; diluted EPS $6.34, up 273%; gross margin 20.9%, non-GAAP 21.1%; FY27 guidance $192B revenue, $74B AI server revenue, up 200%, $25.50 non-GAAP EPS) · S&P 500 rank: Top Stocks YTD, Oct 7 ↗, ChartRow, Oct 6 ↗ · Sandisk gross margin 84.6%: Sandisk 8-K, Aug 5, 2026 ↗
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