1 Reason to Buy Dell Technologies Stock Like There's No Tomorrow

By Jon Quast – Feb 12, 2026 at 2:55PM ESTKey PointsThe hyperscalers intend to spend billions of dollars on servers in 2026.Dell is a leader in AI servers, and investors may not be appreciating its full potential.We’re bullish on these 10 stocks ›NYSE: DELLDell TechnologiesMarket Cap$82BToday's Changeangle-down(-9.19%) $11.41Current Price$112.75Price as of February 12, 2026 at 3:58 PM ETInvestors need to get ready to ride an unprecedented spending wave.If excitement over artificial intelligence (AI) caused a stock market bubble in 2025, major technology players plan to inflate it more than ever in 2026. AI stocks have soared because investors have high expectations for future financial results. Big tech is proving those hopes are well-founded. The four major hyperscalers, including Alphabet (GOOG 0.63%)(GOOGL 0.62%), plan to spend roughly $650 billion in 2026 on capital expenditures (capex), much of which will be directed toward AI. In other words, investors should brace themselves for unprecedented AI infrastructure spending this year. Image source: Getty Images. Some investors fear there's an AI bubble that will soon pop. But I believe that this unprecedented wave of spending will likely prevent an implosion anytime soon. And this is why I believe that investors should consider Dell Technologies (DELL 9.19%) today -- hear me out. Why investors should look at Dell stock Dell stock is often overlooked among AI infrastructure investments, but the business is experiencing an incredible surge in demand for its AI server products. As of its fiscal third quarter of 2026 (which ended on Oct. 31), the company said orders for AI servers were at an all-time high, as was its backlog of $18.4 billion. Here's where things get interesting: Alphabet intends to spend at least $175 billion in capex in 2026 -- a huge portion of the aforementioned $650 billion. Analysts wanted to know exactly where the money will be going. In response, management said it plans to spend about 60% on servers. ExpandNYSE: DELLDell TechnologiesToday's Change(-9.19%) $-11.41Current Price$112.75Key Data PointsMarket Cap$82BDay's Range$111.25 - $120.6952wk Range$66.25 - $168.08Volume590KAvg Vol7.1MGross Margin20.68%Dividend Yield1.69% In short, Alphabet intends to spend over $100 billion on servers in 2026. And keep in mind that Alphabet is just one company, and the other three hyperscalers will need servers as well, to say nothing of other companies, presenting a massive tailwind for the server market. Now, some might say that this doesn't necessarily portend anything for Dell. After all, the hyperscalers often use white box servers -- servers without branding, such as Dell's. However, unprecedented server demand in 2026 will likely create an imbalance between supply and demand across the entire space, much like what's happening with computer memory right now. In other words, I believe this surging demand for AI servers will benefit Dell, even if the benefit is indirect. Bubbles occur when investors' expectations (and, consequently, valuations) get too far ahead of business fundamentals. However, I would say investors' expectations for Dell stock are modest right now. As of this writing, it trades at less than 11 times its forward earnings, which is quite reasonable. DELL PE Ratio (Forward) data by YCharts In conclusion, Dell stock is a low-risk investment because its business is stable, its products are in high demand, and the valuation is cheap. Demand for AI servers will be higher than ever in 2026, which makes this a stock to at least consider today.Read NextDec 24, 2025 •By Harsh ChauhanForget Nebius Group Stock: This Quiet AI Leader Looks Like the Smarter Buy TodayDec 3, 2025 •By Harsh Chauhan1 Magnificent Artificial Intelligence (AI) Stock to Buy Before It Soars 28%, According to Wall Street AnalystsNov 26, 2025 •By Howard SmithWhy Dell Technologies Stock Rallied TodayNov 9, 2025 •By Harsh ChauhanCould This Be the Most Underrated AI Infrastructure Play of the Decade?Nov 7, 2025 •By Jon QuastForget Hyperscalers: Why Dell's AI Server Business Just Keeps GrowingOct 10, 2025 •By Harsh ChauhanCould This Overlooked Infrastructure Stock Be the Market's Next Multibagger?About the AuthorJon Quast is a contributing writer for The Motley Fool covering consumer goods, technology, and cryptocurrency.

Before The Motley Fool, he was a missionary in South America.TMFJaguarX@TMFJaguarStocks MentionedDell TechnologiesNYSE: DELL$112.75 (9.19%) $11.41AlphabetNASDAQ: GOOGL$309.03 (0.62%) $1.93AlphabetNASDAQ: GOOG$309.37 (0.63%) $1.96*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.