Apple vs. Dell Technologies: Which PC Maker Stock is a Better Buy?

Apple AAPL and Dell Technologies DELL are well-known personal computer (PC) makers in a market that is expected to see year-over-year shipment growth of 2.1% in 2025, per IDC.  Global PC shipment is expected to witness a CAGR of 0.4% between 2025 and 2029 to hit 422.6 million in 2029. Commercial shipment is expected to grow 4.3% year over year to 138 million and see a CAGR of 0.8% between 2025 and 2029 to hit 142.6 million. Meanwhile, U.S. shipment growth is expected to be 1.7% to hit 70.4 million in 2025, per Canalys. For 2026, the shipment is expected to grow 1.9% to 71.7 million. Commercial is expected to 6.3% in 2025 and 1.4% in 2026 while consumer is expected to remain flat year over year in 2025 and increase 1.1% in 2026.The growing demand for artificial intelligence (AI) powered PCs and Microsoft Windows 10 end-of-service in October 2025 are key catalysts. However, higher U.S. tariffs, particularly on China and associated recessionary risk, are a major concern. This factor has negatively impacted both Apple and Dell Technologies. Year to date, Apple shares have lost 23.4%, outperforming Dell Technologies, shares of which have plunged 29.3%.AAPL and DELL Stock’s Performance Image Source: Zacks Investment Research So, Apple or Dell Technologies, which is a better buy under the current scenario?The Case for Apple StockApple’s Mac business is benefiting from strong demand for M4, M4 Pro, and M4 Max chips. In March, Apple expanded its Mac portfolio with the new MacBook Air powered by the M4 chip with up to 18 hours of battery life and a new 12MP Center Stage camera. Apple also announced the new Mac Studio featuring M4 Max and the new M3 Ultra chip. The new chip is the most powerful created by Apple and features double Neural Engine cores, Thunderbolt 5 with more than 2 times the bandwidth per port for faster connectivity and robust expansion.Apple’s strong Mac portfolio helped it gain market share in the first quarter of 2025. Per IDC, Apple had a market share of 8.7%, up 70 basis points (bps) on a year-over-year basis. Shipment grew 14.1% year over year to hit 5.5 million. According to Gartner, Mac shares inched up 20 bps while shipments increased 7% year over year.The availability of Apple Intelligence globally with macOS Sequoia 15.4 updates in new languages, including French, German, Italian, Portuguese (Brazil), Spanish, Japanese, Korean, and Chinese (simplified), as well as localized English for Singapore and India, bodes well for Mac’s prospects.The Case for Dell Technologies StockDell’s AI prospects remain strong, with AI expanding from major cloud service providers to large-scale enterprise deployments and edge computing with PCs. The Dell AI Factory combines DELL’s solutions and services optimized for AI workloads and supports an open ecosystem of partners comprising Meta Platforms, Microsoft and Hugging Face, apart from NVIDIA. The latest innovations include Dell Pro Max high-performance AI PCs, new PowerEdge servers, and the Dell AI Data Platform with NVIDIA.In the fourth quarter of fiscal 2025, Client Solutions Group revenues were $11.88 billion, up 1% year over year. Commercial Client revenues increased 5% year over year to $10 billion, while Consumer revenues fell 12% to $1.89 billion.Per IDC, DELL had a market share of 15.1%, down 30 bps on a year-over-year basis in the first quarter of calendar 2025. Shipment grew 3% year over year to hit 9.6 million. According to Gartner, DELL shares fell 40 bps while shipments increased 2.1% year over year.DELL’s Earnings Estimate Revision Steady, AAPL’s Goes SouthThe Zacks Consensus Estimate for DELL’s fiscal 2026 earnings is pegged at $8.97 per share, unchanged over the past 60 days, indicating a 10.2% increase over fiscal 2025’s reported figure. Dell Technologies Inc. Price and Consensus Dell Technologies Inc. price-consensus-chart | Dell Technologies Inc. Quote The consensus mark for AAPL’s fiscal 2025 earnings has declined 0.6% to $7.18 per share over the past 60 days, suggesting 6.37% growth over fiscal 2024. Apple Inc. Price and Consensus Apple Inc. price-consensus-chart | Apple Inc. Quote Both DELL’s and AAPL’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. However, Dell Technologies’ average surprise of 5.13% is better than Apple’s surprise of 4.39%, reflecting a good quality of earnings beat on a consistent basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Valuation: DELL is Cheaper Than AAPLValuation-wise, Dell Technologies shares are cheaper compared with Apple. While DELL has a Value Score of B, Apple has a Value Score of D, suggesting stretched valuation. In terms of forward 12-month Price/Sales, Dell shares are trading at 0.57X, lower than Apple’s 7.13X.DELL and AAPL Valuation Image Source: Zacks Investment Research ConclusionDell Technologies strong AI-powered PC portfolio and a rich partner base is noteworthy apart from a cheaper valuation. While both Apple and Dell Technologies carry a Zacks Rank #3 (Hold) each, DELL is a better pick, given solid prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Dell Technologies Inc. (DELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks