CrowdStrike vs. Dell Technologies: Which Technology Stock Is a Better Buy in 2026?
2026-07-17 20:31
•Brendan Coffey •The Motley Fool
••••• •••• Axe Capital view
Why Dell Beats CrowdStrike for SA Investors in 2026
Dell Technologies' AI-driven growth and valuation edge make it a smarter pick than CrowdStrike for local investors.
In the global tech race, CrowdStrike shines in cybersecurity with solid revenue growth, but it trades at a punishing 167x forward P/E and is dealing with the fallout from a major IT outage. That kind of valuation leaves little room for error, especially with Microsoft breathing down its neck. Dell Technologies, on the other hand, is a standout. It's growing revenues by 19% and expects a 51% jump next year thanks to AI server demand estimated at $60 billion. For South African investors, the story is clear: Dell’s reasonable 21x forward P/E and hefty free cash flow offer a much more appealing risk-reward profile. While CrowdStrike could rebound if it resolves its operational issues, the risks seem heavy. Dell’s growth ties nicely into the broader rand outlook, as stronger AI-driven exports could support a steadier USD/ZAR. this is just my opinion and not financial advice
I would buy Dell Technologies for exposure to AI infrastructure growth at a reasonable valuation and avoid CrowdStrike given its high multiple and operational risks.
- DELL
- USD/ZAR
- CrowdStrike recovering faster than expected and regaining market share
- Dell facing stronger competition from Amazon or hardware supply chain disruptions
7/10
The article compares CrowdStrike and Dell Technologies as investment options for 2026. CrowdStrike offers cloud-native cybersecurity growth with 22% revenue growth but trades at a steep 167x forward P/E and faces reputational damage from the July 2024 IT outage. Dell Technologies, trading at a cheaper 21x forward P/E, benefits from massive AI server demand with expected 51% revenue growth and $60 billion in AI server sales projected for FY 2027. The author recommends Dell due to its stronger AI-driven growth trajectory and more attractive valuation despite CrowdStrike's competitive positioning.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Brendan Coffey
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: CRWD, DELL, MSFT, AMZN
Sentiment: Positive - Company shows solid 22% revenue growth and maintains competitive positioning in cybersecurity with its Falcon platform. However, it faces significant headwinds from the July 2024 IT outage, ongoing litigation, intense competition from Microsoft, and trades at an expensive 167x forward P/E valuation. The company also reported a net loss of $162.5 million in FY 2026 despite revenue growth. Dell demonstrates strong fundamentals with 19% revenue growth, $5.9 billion net income, and robust free cash flow of $8.6 billion. The company is positioned to capitalize on AI infrastructure demand with projected 51% revenue growth and $60 billion in AI server sales for FY 2027. Trading at a reasonable 21x forward P/E, it offers better value and growth prospects compared to CrowdStrike.
Keywords: cybersecurity, cloud infrastructure, AI servers, valuation comparison, enterprise software, hardware manufacturing, data centers, IT outage impact
Insights:
- CRWD: Neutral: Company shows solid 22% revenue growth and maintains competitive positioning in cybersecurity with its Falcon platform. However, it faces significant headwinds from the July 2024 IT outage, ongoing litigation, intense competition from Microsoft, and trades at an expensive 167x forward P/E valuation. The company also reported a net loss of $162.5 million in FY 2026 despite revenue growth.
- DELL: Positive: Dell demonstrates strong fundamentals with 19% revenue growth, $5.9 billion net income, and robust free cash flow of $8.6 billion. The company is positioned to capitalize on AI infrastructure demand with projected 51% revenue growth and $60 billion in AI server sales for FY 2027. Trading at a reasonable 21x forward P/E, it offers better value and growth prospects compared to CrowdStrike.
- MSFT: Neutral: Mentioned as a competitive threat to CrowdStrike in the cybersecurity market, creating pricing and market share pressure. No direct investment recommendation provided.