Dell Technologies (DELL) Goldman Sachs Communacopia + Technology Conference 2026 summary

Industry trends and technology cycles

• AI adoption is in early stages, with only 10–15% of companies fully recognizing its importance for business transformation.

• AI is shifting infrastructure from a cost center to a value creation engine, requiring reimagined workflows and processes.

• Barriers to adoption are more cultural and regulatory than technological, with S-curve adoption underway.

• Hybrid and on-premises models are favored for keeping AI close to proprietary data, especially in sensitive industries.

• Most enterprise data remains on-premises, and future data creation will accelerate with AI and agentic software.

Business model, supply chain, and competitive advantages

• Broad portfolio and deep supplier relationships enable nimble supply allocation and reliability, especially in tight markets.

• Strong demand signal integrity and direct customer engagement provide a competitive edge.

• Complexity in AI platforms and chips benefits the company, as it can orchestrate engineering, supply chain, and financing.

• Scale, operating leverage, and integrated services create customer stickiness and recurring value.

• Operating leverage is highlighted by a record low 8% OpEx rate, achieved through internal AI-driven process modernization.

Market opportunities and demand durability

• AI server backlog remains high, with $95 billion outstanding and $130 billion converted in the past year.

• Neocloud and sovereign AI projects are major demand drivers, with significant activity outside the US and in public sectors.

• Traditional compute demand is durable due to a large installed base of aging servers and the need for modernization.

• Storage growth is accelerating, driven by AI-generated data and new use cases like robotics and multi-agent systems.

• PC demand is deferred but expected to rebound as aging devices are replaced, especially for AI-enabled productivity.