Execute cross-functional strategies to respond to supply shortages; Adjust to EW

During Supply Scarcity; Upgrade Dell Technologies Inc. (DELL.N, DELL UN) executing better than peers, enabling mission critical demandcapture, share gains, and pricing power. Uncertainty on duration/magnitude of growth remains on pull-fwd/enterprise exposure.Raise ests materially; PT to $448; $600 bull case. Stock RatingIndustry ViewPrice targetShr price, close (May 29, 2026)Mkt cap, curr (mm)52-Week Range$429.00-106.43 Key Takeaways unprecedented revenue/EPS growth, which we underestimated previously.Post-earnings, our FY27/FY28 EPS are materially higher than we previously modeled. FY27 is now 7% above Street, FY28 is 9% above Consensus.The question now is - What is the durability of this above-trend growth (and what do you pay for that)? Too early to tell, so we step to the sidelines at EW.Key investor focus needs to be NTM EPS revisions and "peak EPS" perception, as this almost single-handedly dictates cyclical out/under performance.Upgrade to EW (from UW); New $448 PT assumes 20x FY28 EPS of $22.40; $600 Bull case valuation vs. $220 Bear case valuation leaves balanced R/R. in this year's All-America Extel survey. Thank you so much! ErikHow to vote: To request a ballot, please go to https://www.extelinsights.com/voting and select “All-American Research Team”. investors should be aware that the firm may have a conflict ofinterest that could affect the objectivity of Morgan StanleyResearch. Investors should consider Morgan StanleyResearch as only a single factor in making their investmentdecision. in Taiwan last week makes clear that Dell is managing the current semiconductor report. concerns. Simply put, Dell is executing across nearly all business lines, taking shareof a growing AI spend pie, gaining share in traditional enterprise markets, andleveraging pricing power in ways that peers aren't, including, we believe, winninggeneral purpose server orders from Tier 2 CSP's. These factors are more thanoffsetting record input cost inflation, and driving the strongest year of revenue andearnings growth - by far - since Dell returned to the public markets in 2018. Thatsaid, the duration and magnitude of today's record growth is still uncertain, as most impact on Dell's sustainable fundamentals. significantly?“When the facts change, I change my mind." - John Maynard Keynes.We’d highlight three important updates to our views: better than peers. If there was one clear takeaway from our trip to Taiwanthat shifts our thinking, it's that Dell is getting better access to memorysupply (and pricing) than many enterprise peers. Long-term suppliers/buyerrelationships and scale are the keys to why this is the case. As a result, DELLis taking share from peers across PCs and traditional servers, and capturing •Second, Dell appears to be capturing new demand from Tier 2 CSP’s.Wecan't state this as fact, but we believe this reflects Dell leveraging strongersupply and access to T2 CSPs via AI servers sales to sell general servers tothis cohort, which has historically bought from the Taiwanese ODMs. We Earnings season and our checks have shown there is clear pull-forward fromlarge enterprises, and we tend to believe it’s significant. But the duration of this accelerated purchasing is still uncertain, as Dell's supply chain partnersare only seeing positive revisions to builds (ex-PCs) at the moment, andmgmt points to these customers lining up for supply again for next year'sorders. Therefore there’s clearly also some degree of sustainability to Dell's Asia suggest a new wave of investment tied to enabling Agentic AI. The majority ofthis value is accruing to the cloud and hyperscaler component suppliers, with mostHardware OEM‘s/ODM's and channel partners (i.e. distributors and VARs) remaininguncertain on exactly what this spending wave means for Enterprise general serverTAM. Nevertheless, the combination of Dell's share gains within tier 2 CSP‘s, sharegains in core enterprise servers, large enterprise pull-forward, and this new wave of Though we want to be clear, we are not seeing material signs of Enterprise Hardware spending materially inflecting, and much of the above reflects Dell'ssuperior execution.Over the last week, our enterprise hardware coverage hasmaterially outperformed on the back of positive earnings results and significantshort covering, as mission critical pull-forward and pricing increases are more thanoffsetting margin headwinds for most. But we want to be clear, we are not pickingup signs of a material inflection in enterprise hardware spending right now. In fact,our May VAR check-in pointed to consistent spending trends from February, March,and April. Further, our 1Q CIO Survey pointed to Enterprise Hardware spending down 20bps Y/Y from 2025, 30bps below the trailing 10Y average, and 80bpsbelow the T15Y average. M Exhibit 2:Hardware domain experts in our 1Q CIO Survey expect 2026 spend growth to accelerate Y/Y in Storage but decelerate Y/Y in Servers and PCs. IT Hardware Spending