Dell Technologies (DELL.N): Live From 1 Dell Way - Why This Time is Different

Our 1-on-1 with COO Jeff Clarke at DELL HQ covered the sustainability of infra demand & why the Agentic cycle is different, server growth outlook, DELL's perspective on memory "margin stacking", supply challenges, & opex leverage. DELL believes this cycle is different than the last 8 because the underlying driver is TAM expansion, not changing refresh rates. Agentic AI is decoupling cognitive output from headcount for the first time ever, with inference token growth of 87x by 2030 requiring greater compute/storage needs. While traditional server units decline on density improvements, DELL expects server units to grow exponentially alongside a stronger CPU:GPU ratio. Component supply remains the biggest challenge, and shortages could persist 5+ more years. Record ISG gross margins reflect a structural shift higher in the pricing/margin floor rather than "margin stacking". We remain EW-rated with an unchanged model and $511 PT (14x FY28 EPS of $36.47), but now underwrite a higher probabi