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    Will Dell’s Stricter Office Mandate and AI Server Momentum Change Dell Technologies' (DELL) Narrative

    Simply Wall St·12/25/2025 09:30:45
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    • Dell Technologies recently tightened its return-to-office rules for North American commercial sales staff, requiring them to work in the office five days a week for at least eight hours a day after internal reviews showed uneven compliance with earlier policies.
    • At the same time, Dell’s evolution into an AI infrastructure provider with a large AI server order backlog and a long-term revenue growth outlook has drawn fresh attention to how its culture and operations support this shift.
    • Next, we’ll examine how Dell’s AI infrastructure momentum and stricter in-office mandate could reshape its existing investment narrative.

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    Dell Technologies Investment Narrative Recap

    To own Dell Technologies, you need to believe its shift from legacy hardware to an AI infrastructure “factory” can compound earnings despite margin pressure in traditional PCs and servers. The latest return to office crackdown for North American sales looks culturally significant but does not materially change the near term AI server backlog catalyst or the key risk that AI growth remains rate dilutive to margins.

    The most relevant recent update here is Dell’s raised long term outlook for 7 to 9% annual revenue growth over the next five years, supported by a large AI server order backlog. That guidance underpins the current AI infrastructure narrative, but it also heightens the importance of how efficiently Dell converts those AI shipments into sustainable profitability as its mix shifts away from slower PC and legacy infrastructure demand.

    Yet for all the optimism around AI servers, investors also need to be aware that...

    Read the full narrative on Dell Technologies (it's free!)

    Dell Technologies’ narrative projects $122.2 billion revenue and $7.4 billion earnings by 2028.

    Uncover how Dell Technologies' forecasts yield a $163.30 fair value, a 27% upside to its current price.

    Exploring Other Perspectives

    DELL 1-Year Stock Price Chart
    DELL 1-Year Stock Price Chart

    Seventeen fair value estimates from the Simply Wall St Community span roughly US$112 to US$222 per share, highlighting how far apart individual investors can be on Dell’s worth. Against that wide range, concerns that AI server growth is still diluting margins give you an important reason to compare several viewpoints before deciding how much of Dell’s future you want in your portfolio.

    Explore 17 other fair value estimates on Dell Technologies - why the stock might be worth as much as 73% more than the current price!

    Build Your Own Dell Technologies Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.