Evercore ISI analysts believe that Dell Technologies (DELL) is well-positioned for the next phase of artificial intelligence (AI) adoption. Enterprises are now using agentic AI for operations such as workflow orchestration, sales and marketing automation, customer service management, and finance and risk monitoring. Fueled by the rapid growth of enterprise data from digital devices and collaboration tools, agentic AI has greatly improved its ability to make complex decisions in real time.
Amid the company’s Dell World event, analyst Amit Daryanani believes that as agentic workloads scale, the economics of where these workloads run is very important. AI costs have dropped significantly (token costs have dropped 80% annually), but usage has grown even faster. As a result, token consumption has surged (reasoning token usage up about 320 times), especially for reasoning tasks, and inference is now expected to account for most AI computing (about two-thirds) demand this year.
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Evercore ISI sees Dell as well-positioned to monetize this next phase of AI adoption in enterprises, as agentic workloads move from the pilot stage to production. Evercore has an “Outperform” rating on Dell’s stock and a $270 price target, which implies an 11% upside from current levels.
We look at Dell a bit more closely now…
About Dell Technologies Stock
Dell Technologies is built around two main businesses: the part that serves everyday users with PCs and accessories, and the part that supports companies with servers, storage, and networking. It also offers infrastructure software and services that help customers run cloud, AI, and data-heavy workloads more efficiently.
In practice, Dell focuses on helping organizations manage their technology stack from the edge device to the core data center. That makes it especially relevant for businesses modernizing their IT systems. The company has a huge market capitalization of $163.25 billion.
Dell’s stock has risen mainly because investors see stronger demand for its AI-related infrastructure business. Surging server and networking sales have made the market more confident about future growth. Over the past 52 weeks, the stock has gained 163.54%, while it has been up 134.37% year-to-date (YTD). It reached an all-time intraday high of $263.99 on May 8, but currently is up 11.9% from that level.
www.barchart.com Presently, Dell is trading at a cheaper valuation than its peers. On a forward-adjusted basis, its price-to-earnings (non-GAAP) ratio of 20.46 times is lower than the industry average of 24.58 times.
Dell’s Q4 Earnings Highlight Strong AI Demand and Infrastructure Growth
Dell’s fourth-quarter for fiscal 2026 (quarter ended Jan. 30) results were better than expected. The company’s net revenue increased 39% year-over-year (YOY) to a record $33.38 billion, which was better than the $31.73 billion that Wall Street analysts had expected.
This also translated into profitability gains. Non-GAAP operating income grew 32% from the prior-year period to $3.54 billion. Non-GAAP EPS increased 45% to $3.89, surpassing the $3.53 that analysts had expected.
Wall Street analysts are robustly optimistic about Dell’s future earnings. For the current fiscal year, EPS is projected to surge 28.3% annually to $11.87, followed by a 12.6% growth to $13.37 in the next fiscal year. Moreover, analysts expect the company’s EPS to grow by 94.3% YOY to $2.74 for the first quarter of fiscal 2027 (to be reported on May 28, after the market closes).
What Analysts Think About Dell Technologies Stock
Recently, BofA research analyst Wamsi Mohan reiterated a “Buy” rating on Dell’s stock and raised the price target from $246 to $280. The analyst cited agentic AI as a structural demand driver.
Citi analysts also kept a “Buy” rating and raised the price target from $235 to $290. Ahead of the Q1 report, the analyst sees solid server demand driven by expanding AI infrastructure and growing demand for agentic AI workloads, based on supply commentary. Analysts at Mizuho maintained an “Outperform” rating on Dell’s stock and raised the price target from $260 to a Street-high of $300, based on rising agentic AI workloads that should drive sustainable demand for servers.
Dell Technologies remains a popular name on Wall Street, with analysts awarding it a consensus “Moderate Buy” rating overall. Of the 25 analysts rating the stock, 15 analysts have given it a “Strong Buy” rating, two analysts gave a “Moderate Buy,” while seven analysts are taking the middle-of-the-road approach with a “Hold” rating, and one analyst recommended “Strong Sell.” The consensus price target of $208.54 represents a 29.4% downside from current levels. The Street-high price target of $300 indicates a 1.5% upside.
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www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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