Dell vs HP: 2 Legacy Tech Giants, 2 Very Different AI Bets

By Trey Thoelcke Published Mar 17, 7:45AM EDT

Quick Read

Dell Technologies (DELL) generated nearly $10B in AI server revenue in FY2025 with management guidance for at least $15B in FY2026, while HP (HPQ) saw printing segment decline 2% year over year and faces a $0.30 EPS headwind from rising memory costs in FY2026; Dell’s FY2025 revenue hit $95.6B (+8%) with earnings growth of 45.4% year over year versus HP’s operating income falling 16.87% year over year.
Dell is capitalizing on enterprise data center AI infrastructure demand with a $9B backlog, while HP is constrained by structural decline in its printing business and rising component costs that are compressing profitability.

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Dell vs HP: 2 Legacy Tech Giants, 2 Very Different AI Bets — © Thinglass / iStock Editorial via Getty Images

Dell Technologies (NYSE: DELL | DELL Price Prediction) and HP (NYSE: HPQ) are two legacy tech names that retirement investors have held for decades. Right now, they are not the same bet. One is riding the AI infrastructure wave; the other is fighting margin compression in a declining print market. Here is how they compare across the dimensions that matter most.

Growth Trajectory

Dell’s AI server business generated nearly $10 billion in revenue in FY2025. Management has guided for at least $15 billion in AI server shipments in FY2026, a target CEO Jeff Clarke stated the company had already locked in as of day 27 of the fiscal year. The AI backlog stood at roughly $9 billion as of February. Total FY2025 revenue came in at $95.6 billion, up 8%, with quarterly earnings growth of 45.4% year over year and quarterly revenue growth of 39.5% year over year.

HP’s story is more complicated. Personal Systems revenue grew 11% year over year in Q1 FY2026, driven by AI PC momentum, with AI PCs now representing roughly 35% of shipments. But the printing segment (which accounts for a meaningful share of HP’s revenue) declined 2% year over year in the most recent quarter and has been contracting for several consecutive quarters. Full-year FY2025 operating income fell 16.87% year over year.

Winner: Dell.

Valuation

On the surface, HP trades at a trailing P/E of just 7x with a forward P/E of 7x, compared to Dell’s trailing P/E of 17x and forward P/E of 12x. HP’s price-to-sales ratio is just 0.31x versus Dell’s 0.90x.

But cheap multiples reflect real structural risk. HP carries a shareholders’ equity deficit of $766 million as of its most recent quarter. Memory costs (representing 15% to 18% of the cost of a typical PC) are rising sharply, with management quantifying a net FY2026 EPS headwind of $0.30 after mitigations. FY2026 guidance is expected to land at the lower end of the $2.90 to $3.20 non-GAAP EPS range. Dell’s PEG ratio of 0.6 suggests its higher multiple is supported by faster earnings growth.

Winner: Dell, on a growth-adjusted basis.

Yield and Income

This is where HP earns its keep for retirement portfolios. HP’s dividend yield stands at 6.2%, with a quarterly dividend of $0.30 per share. Dell’s yield is 1.4%, though it raised its annual dividend by 20% to $2.52 per share and added a $10 billion share repurchase authorization for FY2026. For investors who need current income, HP’s yield is meaningfully higher, but it comes attached to a business with declining profitability and rising cost headwinds.

Winner: HP, on yield alone.

Long-Term Track Record

Dell shares have gained 63.62% over the past year and 246.71% over five years. HP shares have lost 34.25% over the past year and 38.61% over five years. The divergence is not cyclical noise. It reflects two fundamentally different strategic positions in an AI-driven capital expenditure cycle.

Winner: Dell.

The Verdict

Dell has demonstrated stronger capital appreciation, AI server revenue growth, and earnings trajectory. Its AI server pipeline, enterprise data center exposure, and earnings growth trajectory are not matched by anything in HP’s current portfolio.

HP offers a higher dividend yield but has faced declining profitability and stock price losses over the past year and five years. The yield is real, but so are the headwinds from structural decline in print, margin pressure from rising memory costs, and negative shareholders’ equity.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.