Quality Momentum

QM · rank #18 · 2026-09-10

DELL

NYSE · $338.67B (USD)

SignalBuy1.2strength 1.2 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Momentum 12-1
Return from 12 months ago to 1 month ago.
+222.33%
ROE TTM
Return on equity, trailing 12 months.
+44.3%
Profit margin
Net profit margin, trailing 12 months.
+7.5%
Market cap (USD)
Size filter: > $500M required.
$338.67B
Anchor (recent)
Close on 2026-08-11
$440.97
Anchor (far)
Close on 2025-08-11
$136.81

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

Dell Technologies is a global IT infrastructure and PC vendor whose growth engine has rapidly shifted to AI-optimized servers, with its Infrastructure Solutions Group now generating record revenues driven by hyperscaler and enterprise AI demand.

Rationale

The momentum signal (2.22) is directly reinforced by a 58% YoY revenue surge, record $47B quarterly revenue, and a $95B AI server backlog that provides durable forward earnings visibility supporting the quality-momentum thesis.

Material risks

  • 1Dell is an assembler/integrator of NVIDIA GPUs and third-party components, not a sole-source supplier, meaning hyperscalers building direct ODM relationships or NVIDIA expanding its own server channel could rapidly commoditize Dell's AI server margin and volume.
  • 2Profit margins remain thin (7.5%) relative to the ROE (44%), suggesting heavy leverage amplifies any demand slowdown or component cost spike into outsized earnings deterioration.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Proceed