TLDR:
- Dell Technologies (NYSE:DELL) is expanding its AI capabilities with new PowerEdge servers and solutions
- Jim Cramer advises not betting against Michael Dell and views DELL stock favorably
- Dell reported strong AI-related server orders of $3.2 billion in Q2 fiscal 2025
- New PowerEdge servers with AMD processors offer improved AI performance and efficiency
- Dell is partnering with AMD to deliver advanced end-to-end AI solutions at scale
Dell Technologies (NYSE:DELL) is making strides in the artificial intelligence (AI) market, expanding its offerings and partnerships to meet growing enterprise demand.
The company recently announced several new additions to its Dell AI Factory, including new PowerEdge servers equipped with AMD processors, aimed at accelerating AI adoption in the enterprise sector.
In the second quarter of fiscal 2025, Dell reported impressive AI-optimized server orders totaling $3.2 billion, demonstrating strong market traction.
This resulted in an ending backlog of $3.8 billion, indicating robust future demand for Dell’s AI solutions. The company’s Infrastructure Solutions Group (ISG) performed particularly well, achieving record revenue of $11.6 billion, a 38% increase year-over-year. Within ISG, sales of servers and networking equipment surged by 80% year-over-year to reach $7.7 billion.

To capitalize on this momentum, Dell has introduced five new PowerEdge servers featuring AMD’s 5th Generation EPYC processors. These servers are designed to deliver industry-leading AI performance, efficiency, and flexibility at scale. The new lineup includes the PowerEdge XE7745, which supports up to eight double-width or 16 single-width PCIe GPUs, making it well-suited for enterprise AI workloads, inferencing, and model fine-tuning.
Dell has unveiled the PowerEdge R6725 and R7725 servers, optimized for scalability with high-performing AMD processors. These platforms offer enhanced cooling capabilities and support for dual 500W CPUs, addressing thermal challenges while maintaining high performance for data analytics and AI workloads. The R7725, in particular, boasts up to 66% increased performance and 33% improved efficiency at the top of its range.
Dell is also expanding its AI software offerings. The company has introduced Dell Generative AI Solutions for AMD, which simplifies AI deployment and can reduce time-to-value by up to 86%. The Dell Enterprise Hub now supports PowerEdge XE9680 servers with AMD Instinct MI300X accelerators, enabling secure deployment of advanced language models like Llama and Mixtral.
To support customers in their AI journey, Dell is extending its Professional Services for Generative AI to AMD environments. New Implementation Services for GenAI Platform with AMD provide tailored operational platforms, including Kubernetes configuration and deployment of advanced AI frameworks.
Industry analysts have taken notice of Dell’s AI push. Kuba Stolarski, Research VP at IDC, commented,
“Dell Technologies and AMD continue to drive AI innovation, offering comprehensive solutions and services that help businesses modernize data centers, improve scalability, and leverage AI for better business outcomes.”
Financial commentator Jim Cramer has also expressed confidence in Dell’s strategy and leadership.
On his show “Mad Money,” Cramer advised investors, “Never bet against Michael Dell,” and suggested that Dell stock would be at the top of his list if not for the abundance of other AI-related semiconductor and hardware names in the market.
From a financial perspective, Dell appears well-positioned. The company is trading at a forward P/E of 15.6X for the current fiscal year, slightly above the Computer – Micro Computers industry average of 14.9X. Dell also boasts a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 11X, indicating potential value for investors.
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