As the race to dominate the next era of artificial intelligence infrastructure accelerates, Dell Technologies (DELL) is rapidly emerging as one of Wall Street’s favorites. The latest vote of confidence came from Mizuho, which raised its price target on Dell to a new Street-high $260, arguing that the company is uniquely positioned to capitalize on the explosive buildout of AI servers and the rise of agentic AI systems that require massive computing power, storage, and networking capacity.
The bullish call reflects growing optimism that Dell is evolving far beyond its legacy PC business into a critical backbone provider for the AI economy. The company is expected to benefit from surging enterprise demand for AI infrastructure, expanding market share in high-performance servers, and a rapidly growing backlog tied to next-generation data center deployments.
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With enterprises pouring billions into AI compute, the emergence of autonomous agentic AI applications is adding another powerful tailwind to the long-term bull case for Dell.
About Dell Technologies Stock
Dell Technologies is a multinational technology company with its headquarters in Round Rock, Texas. Primarily operates through its two segments: Client Solutions Group (PCs, workstations, peripherals) and Infrastructure Solutions Group (servers, storage, networking, services). Dell provides comprehensive hardware, software and services solutions to consumers, businesses, public sector, and enterprise customers globally. The company’s market cap is $148.7 billion.
Shares of Dell Technologies have been on a massive run as investor enthusiasm around AI infrastructure and agentic AI demand continues to intensify. The stock has surged 94.32% year-to-date (YTD) and has delivered gains of 154.22% over the past 52 weeks, making it one of the strongest performers in large-cap tech.
More recently, momentum accelerated further on May 6, when Dell shares jumped 10.4% intraday, while also hitting a fresh 52-week high of $239.45 before closing near record levels. The sharp rally followed bullish analyst commentary, including Mizuho raising its price target to a Street-high $260 amid growing optimism that Dell is becoming a major beneficiary of the next wave of AI spending.
www.barchart.com The stock is currently trading at 18.19 times forward earnings, a discount to industry peers.
Record Q4 Results
Dell Technologies released its fourth-quarter and full-year fiscal 2026 results on Feb. 26, delivering record numbers as AI infrastructure demand continued to accelerate across enterprise and hyperscale markets.
For the fourth quarter ended Jan. 30, Dell reported record revenue of $33.4 billion, up 39% year-over-year (YOY). Operating income climbed 43% YOY to $3.1 billion, while net income increased 47% to $2.3 billion. Non-GAAP EPS surged 45% to $3.89, above estimates. Cash flow from operations jumped nearly 700% YOY to $4.7 billion.
The company’s Infrastructure Solutions Group (ISG), which houses Dell’s AI server operations, was the primary growth engine during the quarter. Dell disclosed that it generated record AI-optimized server revenue of around $9 billion in Q4 alone, up 342% YOY and exited the year with a massive AI server backlog of $43 billion. Management said the company closed more than $64 billion in AI-optimized server orders during fiscal 2026 and shipped over $25 billion throughout the year.
For the full fiscal year 2026, Dell delivered record annual revenue of $113.5 billion, representing 19% growth. Full-year net income increased 30% YOY to $5.9 billion, while non-GAAP EPS climbed 27% to $10.30.
Furthermore, the company forecast full-year revenue between $138 billion and $142 billion, implying 23% growth at the midpoint. Additionally, Dell projected full-year adjusted EPS of $12.90 at the midpoint, representing about 25% growth YOY.
For the fiscal first quarter of 2027, Dell guided revenue to a range of $34.7 billion to $35.7 billion and EPS of $2.90. And, management expects AI server revenue to more than double in fiscal 2027 to around $50 billion, underscoring the scale of enterprise AI spending now flowing into Dell’s infrastructure business.
Analysts forecast EPS of $11.90 for fiscal 2027, a 28.7% YOY jump, followed by a further 12.4% rise to $13.37 in 2028.
What Do Analysts Expect for Dell Technologies Stock?
In addition to Mizuho showing confidence, BofA Securities raised its price target on Dell Technologies last month, to $246 from $205 and maintained a “Buy” rating, citing the company’s growing exposure to AI across servers, storage, and PCs.
Plus, Evercore ISI raised its price target on Dell Technologies to $240 from $205 while maintaining an “Outperform” rating.
Overall, DELL has a consensus “Moderate Buy” rating. Of the 25 analysts covering the stock, 16 advise a “Strong Buy,” two suggest a “Moderate Buy,” six analysts give it a “Hold” rating, and one recommends a “Strong Sell.”
DELL has already surged past the average analyst price target of $186.68, while Mizuho’s Street-high target price of $260 suggests that the stock could still rally 5.4%.
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www.barchart.com On the date of publication, Subhasree Kar 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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