Dell Technologies vs. Intel: Which Technology Stock Is a Better Buy for 2027?

Investors choosing between Dell Technologies (NYSE:DELL) and Intel (NASDAQ:INTC) are weighing two different paths in the hardware market. One is a master of execution, while the other is undergoing a massive transformation.

Dell excels at selling complete IT solutions to businesses, while Intel is undergoing a historic transformation to become a premier semiconductor manufacturer for others. Both companies are central to the digital economy, but they offer vastly different risk and reward profiles for everyday investors looking toward 2027.

The case for Dell Technologies

Dell Technologies designs and sells a wide range of hardware, including personal computers, servers, and data storage solutions. It serves a broad customer base including large global enterprises, public institutions, and individual consumers through a mix of direct sales and channel partners. Approximately 40% of its net revenue is generated through these indirect sales channels, which helps it maintain a global footprint.

In its latest annual report, covering the fiscal year ended Jan. 30, 2026, revenue reached about $113.5 billion, which was a growth of approximately 18.8% compared with the prior fiscal year. The company reported net income of roughly $5.9 billion for the same period. This resulted in a net margin of close to 5.2%, reflecting the portion of total revenue that the business kept as profit.

As of its January 2026 balance sheet, the debt-to-equity ratio is negative 12.8x. This metric compares total debt, including short-term and long-term obligations, to shareholder equity, and this negative value indicates that total liabilities exceed shareholder equity. The current ratio is approximately 0.9x, while free cash flow for the fiscal year ended Jan. 30, 2026, reached about $8.6 billion in total.

The case for Intel

Intel designs and manufactures semiconductors that power everything from data centers to personal computers. It is increasingly focused on its foundry strategy, which involves manufacturing chips for other companies among semiconductor stocks. Its primary customers are original equipment manufacturers and cloud service providers who incorporate Intel hardware into their final computing products.

In its latest annual report, covering the fiscal year ended Dec. 27, 2025, revenue was around $52.9 billion, representing a slight decrease of approximately 0.5% compared with the prior fiscal year. The company reported a net loss of roughly $267.0 million for the period. This led to a net margin of close to negative 0.5% as the company continues to invest heavily in its manufacturing capabilities.

According to its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.4x, which measures total debt relative to shareholder equity. The current ratio is approximately 2.0x, while free cash flow for the fiscal year ended Dec. 27, 2025, reached nearly negative $4.9 billion. Note that stock-based compensation (SBC) represented roughly 25% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.

Risk profile comparison

Dell Technologies faces intense competition from hardware, software, and infrastructure providers. It also manages risks from supply chain disruptions and a dependency on single-source suppliers for critical components. Furthermore, the company is subject to the influence of its founder, Michael S. Dell, and faces cybersecurity threats that could interrupt its business.

Intel faces significant competition from rivals like Nvidia Corp. (NASDAQ:NVDA) and Qualcomm Inc. (NASDAQ:QCOM). The company is also navigating the financial uncertainty of its foundry strategy and the execution risks of its massive corporate restructuring. Additionally, geopolitical impacts on manufacturing and semiconductor supply chain volatility continue to pose threats to its long-term stability.

Valuation comparison

Dell is cheaper using Forward P/E, comparing price to future earnings estimates, and the P/S ratio, which uses sales over the past twelve months.

Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.

Which stock would I buy for 2027?

Despite its already massive size, Dell's sales are seen rising a staggering 51% to $171.3 billion in fiscal 2027, with more than $11 billion in both net income and free cash flow. While Dell still sells the laptops that originated the business, the story is all about AI. The business is selling AI-optimized servers hand over fist, with management expecting more than $60 billion in AI server sales in FY 2027, almost triple the prior year.

Intel is pressing on with its plan to revive its business. In the spring it announced a partnership with Space Exploration Technologies Inc. (NASDAQ:SPCX) and Tesla Inc. (NASDAQ:TSLA) to build Terafab, a massive AI chip-making plant aiming to produce as many as 200 billion AI chips a year. Intel is providing its foundry expertise and its 14A process, an effort to produce 1.4-nanometer chips it announced two years ago and is still developing.

Also this year, Intel signed a deal with Nvidia to help build a new AI GPU called Crescent Island that can work in tandem with Nvidia's Blackwell AI chips, and agreed to help develop an AI-centric chip for the Google division of Alphabet Inc. (NASDAQ:GOOG), too. Last year, the company raised investments from the U.S. government and SoftBank to improve its capital position.

All that has generated some optimism on Wall Street. For fiscal 2026, sales are seen rising 19% to $62.3 billion, though a large $11 billion net loss is projected, reflecting the cost of expanding its U.S. foundries.

The choice here isn’t difficult: Dell is offering massive revenue and profitability growth in the near term, at much more affordable P/S and forward P/E ratios. It’s a clear case of buying a good stock at a reasonable price, something long-term investors strive for.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Intel, Nvidia, Qualcomm, and Tesla. The Motley Fool has a disclosure policy.