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Hewlett Packard Enterprise (NYSE: HPE) and Dell Technologies (NYSE: DELL) are booming amid the AI infrastructure-building spree. Both are experiencing explosive growth, but which stock is the better long-term pick right now? Let’s have a look.
HPE’s network skyrockets
HPE just reported a record Q2, with revenue reaching $10.7 billion, and its EPS beat estimates by $0.79. Revenue grew 40% year over year. Specifically, networking revenue grew by over 148%, and the Cloud and AI segment increased 23%.
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HPE raised its full fiscal 2026 revenue growth range to 29% to 33%, a huge bump from the 17% to 22% outlook from the previous quarter. Shares of HPE are up almost 124% this year as of this writing.
Dell exceeds all expectations
HPE’s quarterly numbers were excellent, but Dell’s were jaw-dropping. AI server revenue grew an astounding 757% year over year, reaching $16.1 billion. Total revenue increased 88% year over year. The company blew past Wall Street expectations for EPS, reporting earnings of $4.86, well above the $2.94 consensus.
Dell’s share price is up more than 234% year to date as of this writing.
Because of Dell’s skyrocketing stock price, the company’s valuation metrics are now quite high. HPE is also trading with higher metrics, but Dell has a higher forward and trailing price-to-earnings (P/E) ratio, price-to-sales ratio, and enterprise value to EBITDA.
Who we choose as the winner is a nuanced decision. Dell is a higher-risk, higher-reward stock than HPE. Dell is benefiting from historic AI revenue acceleration, whereas HPE is a steadier and more diversified business. At the same time, HPE offers improving margins and a cheaper valuation.
If you’re an aggressive investor with a risk appetite, Dell is a solid choice based on the company’s momentum. For those who don’t want to be quite as aggressive, HPE’s stock is compelling in a red-hot market with frothy valuations, thanks to its more down-to-earth pricing.
Ultimately, the stock you choose depends on your personal risk profile, but both HPE and Dell are winners in the AI infrastructure boom.
Should you buy stock in Dell Technologies right now?
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