Apparently, things aren't all bubble gum an unicorns at Dell.
Dell faces margin pressure as surging DRAM prices and constrained supply inflate production costs for both server and consumer segments.
DELL's ISG and CSG margins are declining, with consolidated gross margin dropping over nine months.
Despite the robust AI server backlog and raised FY26 revenue guidance, we do not expect quick margin recovery.
DELL trades at a small premium to its 5-year average but remains at a 40% industry discount on key multiples.