Dell can turn AI-server scale and on-premise demand into durable growth, with backlog, deployment capabilities, and storage mix supporting execution and margins.
The valuation assumes AI growth converts into durable demand and earnings, but memory-driven revenue, constrained supply, and cyclical purchasing raise estimate and multiple risk.
Structural improvements in storage mix are driving significant margin expansion, providing a more meaningful earnings contribution than AI servers.
Hardware: GS raises DELL/HPE on AI server/networking strength; storage mix is the underappreciated margin driver
Goldman Sachs raised its numbers for the company, arguing that storage is an underappreciated margin driver, contributing significantly more to EPS than AI servers.
On-Prem strong as GS took up numbers across the hw space: DELL +4%; HPE +3.7%; SMCI +3.1%; NTAP +3%. On DELL, GS argued storage is the underappreciated margin driver (each $1B of storage revenue is worth ~$0.40 of EPS vs. ~$0.06 for AI servers).
The company's stock caught a bid as on-premise solutions gained renewed interest.
On-prem catching a bid again: DELL +7.4%; HPE +3.5%
The company's stock rose in sympathy with SMCI, and JPM identified it as a direct beneficiary of easing power and financing constraints following SPCX's guidance.
The company is a partner on NVDA's DSX POD.
DELL +5.3%; HPE +3.7% in sympathy with SMCI; JPM called DELL out directly as a beneficiary of easing power and financing constraints after SPCX’s guide, and both are partners on NVDA’s DSX POD.
Barclays notes that DELL's AI server business remains strong, with FY27 revenue projected to triple and potential upside to FY28 estimates.
The company's AI backlog remains substantial, exceeding half of its FY27 guidance, providing a strong foundation for future AI-driven revenue.
Barclays downgraded the stock to Equal Weight, citing expectations of materially slower growth and smaller beats as memory pricing normalizes, as much of the enterprise server/storage growth was driven by memory inflation rather than true AI inflection.
Barclays downgraded the stock to Equal Weight, citing that valuations have run up, commodity costs have boosted revenues, and a significant AI inflection is not yet apparent.
Despite a projected tripling of AI revenue by FY27, enterprise growth has been primarily driven by memory-related ASPs, suggesting that growth will slow and beats will be smaller as memory prices normalize.
MS believes Dell is highly leveraged to the repatriation of compute to on-premise, driven by security, sovereignty, and lower token costs, as enterprises increase their on-premise compute and all-flash storage.
Dell leads in 3-year spending intentions among IT hardware companies, with a +31% average, indicating strong demand.
NVDA screens as a beneficiary across scenarios, with DELL/HPE/NTAP most levered to repatriation.
The strength in IT hardware spending appears cyclical, driven by pricing increases and a pull-forward of 2027 spending into 2026, rather than solely by AI adoption.
With over 70% of CIOs expecting budgets to be flat or down beyond 2028, there is a digestion risk against hardware valuations, which are currently trading at approximately 22x NTM P/E.
The company's AI-server moat extends beyond component access to design, supply chain, integration, and deployment, enabling clusters to go live approximately 4–6 weeks faster than peers and supporting premium pricing.
Storage attach and ISG operating leverage are expected to support margins, despite AI-server margins remaining in the mid-single digits.
The company emphasizes liquid cooling, modular racks, and full-stack deployment execution.
Memory is expected to remain the main AI-infrastructure bottleneck in 2027 as demand outpaces supply.
Enterprise AI is still in its early stages, and broader adoption will require data/workflow redesign beyond just infrastructure.
The company's stock caught a bid, indicating positive sentiment in AI hardware, with JPM's Hon Hai note raising 2027 NVL72 rack shipment estimates.
Agentic workloads create much larger memory requirements across HBM, DRAM, NAND, and HDD, benefiting DELL from higher CPU/DRAM/NAND content.
SNDK is viewed as the clearest beneficiary as KV cache and suspended agent state spill into flash, while WDC/STX benefit from logs/traces, P/NTAP from enterprise context storage, and DELL/HPE from higher CPU/DRAM/NAND content. Networking/connectivity names...
The company is expected to benefit from higher CPU/DRAM/NAND content, along with HPE.
Dell began deliveries of Vera Rubin NVL72 racks to CoreWeave in June, with further Q4 shipments supporting Wistron’s AI-server orders.
The stock is a thematic winner in AI infrastructure, specifically within enterprise/on-prem, and is trading near highs.
In semis, it’s more nuanced than just AI winners vs. losers because most names are perceived winners, but the outperformance since the Leopold lows has been centered on CPUs and on-prem/enterprise. The SOX is ~14% below its June highs, yet just a few names...
The company is among a select few large-cap AI semi stocks hitting all-time highs, confirming to investors that parts of the AI trade are still viable.
AMD joined DELL/HPE among a very select few large cap AI semi stocks hitting all-time highs as AMD crossed the $1T marker, which continued to confirm to semis investors that pockets of the AI trade can still work, although obviously many questions today of “too far,...
The company benefits from enterprise AI adoption and open-weight models making on-prem inference cheaper.
The company benefits from agentic AI being a CPU story, which also makes it a server story.
The company benefits from memory 2nd derivative rolling over, which is favorable for OEMs as cost growth slows while pricing remains sticky, helping margins.
Investors favor the company due to its smaller exposure to frontier models, reducing concerns.
The company's on-prem AI Factory delivers significantly lower four-year costs compared to cloud alternatives, which is favorable for enterprise AI adoption driven by tokenomics.
The company is preferred due to multiple EPS drivers across neocloud, storage, and enterprise growth.
ISI prefers DELL because it sees multiple EPS drivers across neocloud, storage and enterprise growth, while maintaining HPE at In Line/$65.
HPE: Evercore ISI defends downgrade after investor pushback, says valuation gap vs DELL is overstated and networking conversion still uncertain
Enterprise AI and on-premise names continue to be bid up and are seen by investors as beneficiaries from open-source driven down token costs.
RBC initiated coverage with an Outperform rating and a $640 price target, expecting AI backlog and storage mix to drive durable growth and margin expansion.
The company exited 2Q27 with ~$95B of AI server backlog and a pipeline expected to convert to >$132B of orders, with demand increasingly constrained by memory supply rather than customer appetite.
Dell IP storage is seen as a significant margin lever, with mix shift and the completion of the legacy storage transition supporting ISG operating margins in the 10–14% range.
RBC sees incremental upside from agentic-AI-driven CPU/server demand and the enterprise refresh cycle.
The company is valued at ~21x CY27 EPS, which is attractive compared to its ~24x five-year NTM average.
The company's guidance is viewed as increasingly realistic, supported by a massive non-cancelable backlog and strong AI server order momentum.
The company is expected to exceed Street EPS estimates for FY27 and FY28, driven by strong AI server shipments, rising attach rates, and improving storage margins.
Storage is identified as the largest incremental EPS lever due to its higher margins, while enterprise AI and inference are expected to support increased on-prem infrastructure and continued operating expense leverage.
Evercore maintains an Outperform rating and raised its price target to $650, with an upside case of $1,000 based on potential FY28 EPS exceeding $40.
Bernstein says AI server demand remains exceptionally strong across customer types, with ~$61B of new orders in the quarter, ~$16.4B shipped, and backlog reaching ~$95B.
Enterprise AI factory deployments have risen to ~6,500, a 60% increase in six months.
Agentic AI, not open-source adoption, is the main driver pushing enterprises from experimentation into production.
Bernstein expects AI server margins to stay mid-single-digit, but sees ISG margins improving through scale and higher-margin Dell IP storage.
Bernstein warns that DRAM/NAND shortages could worsen again next year as demand outgrows supply.
The company delivered strong revenue and EPS guidance, with AI servers driving significant order growth and backlog, and storage-led margins contributing positively.
AI server revenue exceeded expectations, and traditional servers and storage showed strong growth, leading to an 89% increase in ISG revenue and a 15% ISG operating margin.
AI orders and pipeline continued to expand, with a five-quarter pipeline remaining multiples of the current backlog, indicating sustained demand.
The company's AI customer count significantly increased, with enterprise customer additions accelerating, repeat purchases rising, and enterprise buyers attaching more storage and networking, expanding both addressable market and margin.
The broader portfolio, including traditional CPU compute, storage, networking, services, and financing, is central to the bull case, as AI stimulates demand across these areas, weakening the bear argument that AI exposure is merely low-margin server assembly.
The company demonstrates durable execution advantages, combining engineering, supply-chain scale, global deployment, support, and financing, which are crucial as systems transition to full rack-scale solutions.
Bears question the sustainability of broader growth and margin structure once component inflation, supply scarcity, and initial enterprise refresh normalize.
Management cautioned that not all FQ2 benefits would persist at the same level, with ISG operating margin expected to normalize to approximately 13.5% in FQ3 and CSG operating margin to 6% in FQ3 and 5.5% in FQ4.
Headline growth may overstate underlying unit demand, as inflation and input-cost increases contributed to revenue growth, with a significant portion of traditional-server growth attributed to like-for-like pricing and richer configurations.
If memory prices stabilize or fall, the company could face slower revenue growth even with healthy unit demand, leading to tougher comparisons in FY28.
Order and backlog figures may include double ordering and project timing risk due to supply constraints, and large dollar deployments remain concentrated among a relatively small group of neocloud and sovereign customers, whose financing capacity and project schedules may be less durable.
FQ2's 15% ISG operating margin benefited from unusually favorable conditions, and management does not expect all those benefits to recur, with AI servers remaining a mid-single-digit-margin product.
Reported free cash flow was significantly below adjusted free cash flow due to DFS dynamics, and inventory rose, raising concerns about the conversion of earnings growth into reported cash.
There is a longer-term risk that FY27 represents a peak growth and pricing year, with potential normalization of traditional-server demand, slower storage attachment, weak PC units, and pressure from public-cloud or ODM alternatives.
The company's multiple has expanded significantly, meaning any slowdown in growth or margin disappointment could lead to a re-rating.
The company provided a massive guidance raise for the full year, exceeding buyside expectations and comfortably surpassing the lower end of buyside estimates.
Revenue guidance was significantly increased, and AI-server revenue projections surpassed both buyside and Street estimates.
Bank of America expects Dell to deliver a strong beat and raise, with FY27 AI server revenue reaching approximately $65 billion, up from the current $60 billion guide, due to strong backlog and order activity.
Demand for AI servers continues to exceed available supply.
Beyond AI, ISS, storage, and commercial PCs are also performing well, with CSG margins modeled at 6.3% versus 6.0% guidance.
Bank of America reiterated its Buy rating and raised its price target to $505 from $500.
Upside is still constrained more by memory/SSD availability and customer datacenter readiness than by demand.
Another raise is expected, with AI server growth tracking over 80% year-over-year, non-AI infrastructure also improving, and FY27 AI server guidance potentially moving towards ~$20B from $17.9B.
DELL/HPE/NTAP: JPM favors DELL/HPE into prints, puts NTAP on Negative Catalyst Watch
Evercore ISI believes investors are underestimating the potential profit contribution from storage, which, despite being a smaller portion of revenue, carries materially higher margins.
Double-digit storage growth, along with mix and leverage, could drive approximately $2 of FY28 EPS upside in a bull case, about 9% above current estimates.
Further upside is expected as the company shifts towards more proprietary, software-defined storage and AI-ready architectures, which should enhance attach rates and mix.
Evercore ISI reiterated an Outperform rating and raised its price target.
The company is a positive read-through from strong 2027 AI-server demand, with Vera Rubin potentially exceeding 50K racks and production ramping from late 2026.
Wells Fargo reiterated Overweight and raised its price target, citing an inflection in the traditional server business due to enterprise refresh and agentic AI demand, alongside strong AI-server momentum.
Wells Fargo sees potential for FY27 AI-server revenue to exceed current models.
Total RPO provides significant backlog visibility, having increased substantially year-over-year.
Wells Fargo raised FY27/FY28 EPS estimates and believes the company is well-positioned to capture upside as supply improves and enterprise AI demand broadens.
DELL/HPE/HPQ +3-5% on the back of better Lenovo results overnight.
Goldman reiterated Buy, expecting enterprise AI adoption and data-center modernization to support upside to estimates through stronger ASPs and improving infrastructure demand.
Agentic AI should expand the traditional server market and broaden AI-server demand beyond hyperscalers/neoclouds into sovereign and enterprise customers, with a clear read-through for DELL.
DELL/HPE/NTAP: Goldman Sees AI-Led Enterprise Hardware Upside but Says the Recent Rally Raises the Bar
Goldman reiterates Buy on DELL, HPE and NTAP, saying enterprise AI adoption and data-center modernization should support upside to estimates through stronger ASPs and improving infrastructure demand. Goldman says agentic AI should expand the traditional ser...
Supply constraints should cap near-term unit growth, and PC shipments remain weak.
The sector’s strong Q2 outperformance makes the risk/reward more demanding into earnings.
Checks indicate that SPCX and CRWV plan to purchase AI servers from Taiwanese ODMs instead of exclusively from DELL starting in 2027, suggesting potential market share loss.
DELL -4% as Fubon was out saying their checks show SPCX and CRWV planning to buy Ai servers from Taiwan ODMs instead of purchasing 100% from DELL likely starts in 2027. Pushback:
Evercore reiterates Outperform and a $500 price target, arguing concerns around DELL’s AI server customer concentration are overstated despite roughly 60B of FY27 AI server revenue being skewed toward a few large neocloud and frontier-lab customers. Evercor...
DELL/AAPL Outperform in Bernstein CIO Survey; IBM/HPQ/HPE Spending Intentions Remain Weak
AI adoption is beginning to show tangible productivity benefits, but on-prem AI server spending is still cautious; CIOs also expect a teens decline in PC units as refresh cycles lengthen, partly offset by richer configurations and higher memory-driven ASPs....
The stock rose as clients shifted quarterly capital expenditure towards servers, storage, and memory purchases to secure supply-constrained infrastructure.
DELL +7% / HPE +5% as IBM neg pre as they said they saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure
The company is evolving into a diversified AI infrastructure beneficiary rather than just a GPU server story.
Persistent supply constraints continue to limit revenue, indicating strong demand.
There is durable enterprise AI demand.
Storage is becoming a meaningful margin expansion driver.
Accelerating enterprise AI adoption is occurring beyond hyperscalers.
Growing customer preference for on-prem AI deployments is driven by token economics and data locality.
Susquehanna lifts FY28/29 EPS to $24.23/$28.08, approximately 10% above Street estimates, modeling ISG at a 37% CAGR as the DC segment rises to over 60% of ISG by FY29 on NeoCloud share capture, with mix shift being the key margin driver.
Enterprise recovers double-digits off the FY27 trough as AI inferencing broadens into enterprise and sovereign, while agentic AI structurally lifts CPU attach rates.
Asia ODM checks corroborate approximately 20% CY26 server shipment growth.
Evercore believes the expanding investigation into alleged exports of SMCI servers to China creates a modest positive read-through for DELL, as customers may increasingly diversify toward alternative vendors for future AI deployments.
Evercore views DELL as the cleaner beneficiary given its scale with Tier-2 cloud providers, and believes any incremental AI server allocation could drive upside to its $60B AI server revenue target.
Morgan Stanley upgraded the company to Equal-Weight from Underweight and raised its price target to $448 from $170 after concluding the company is benefiting from preferential memory supply and pricing, driving share gains across PCs and general-purpose servers.
The firm now models FY27 EPS of $19.67 and FY28 EPS of $22.40, both above Street expectations, and believes server demand can remain strong through FY28.
Morgan Stanley’s supply-chain work suggests memory remains the key differentiator, while management continues to see demand outpacing supply, implying estimates may still be too low.
The firm stops short of Overweight given the stock’s sharp year-to-date move and uncertainty around the durability of enterprise spending pull-forward.
The company delivered a huge AI-led, broad-based beat-and-raise, with April-quarter revenue, margins, and EPS significantly exceeding street expectations, and management framed the second half as supply-constrained rather than demand-constrained.
Q1 revenue and EPS significantly surpassed street estimates, and the Q2 and FY27 revenue and EPS guidance were materially above expectations.
AI server revenue, orders, and backlog were strong, with the FY27 AI server revenue guide raised significantly above consensus, and a forward pipeline that remains multiples of the backlog, providing strong visibility for AI growth.
Traditional Servers & Networking revenue grew strongly, with management highlighting enterprise refresh, infrastructure modernization, and incremental AI inference/agentic AI workloads, broadening the AI narrative beyond just GPU systems.
Despite AI server mix, gross margin was above street, and operating margin expanded, with ISG operating margin remaining strong, and management reiterating mid-single-digit AI server profitability.
Storage revenue grew, with Dell IP storage gaining mix and unstructured storage showing momentum, which is important as it offsets lower-margin AI server mix and supports the "AI factory" stack narrative.
Client Solutions Group (CSG) revenue grew, with the company gaining share for a second consecutive quarter, benefiting from enterprise refresh and a large installed base of older devices, and demand was stronger than anticipated across lines of business.
The quarter changes the narrative from a low-multiple PC/server hardware company to a clear enterprise AI infrastructure winner with multiple ways to monetize the AI buildout, supported by strong AI server guidance and backlog.
Traditional servers are now part of the AI story, with agentic AI and inference driving demand for dense CPU-based systems alongside normal enterprise refresh and modernization.
The company demonstrated a cleaner margin argument, delivering strong operating margin and ISG operating margin, with management indicating improved ex-AI gross margin outlook and mid-single-digit AI server operating income margins.
Storage and services attach, particularly Dell IP storage and unstructured data products, are qualitatively offsetting lower-margin AI server revenue, supporting the idea that AI can drive both revenue and better earnings quality over time.
Bears argue that while the quarter was spectacular, it may not be sustainable, as hardware cycles can look best when customers pull demand forward, buying ahead of price increases and securing scarce supply.
Management acknowledged pull-in and buy-ahead, raising concerns about ASP inflation, pull-forward in traditional servers and PCs, and the risk of demand erosion later if pricing continues to rise.
The guidance embeds a slower second half than the first half, and while management attributes this to supply constraints, bears question how much of the Q1/Q2 strength was true underlying demand versus customers rushing orders ahead of higher component costs.
Bears will focus on margin mix, competition, and concentration, as AI servers have large revenue but are structurally lower margin, and the company still faces constraints in DRAM, NAND, CPU, and HDD.
If component inflation cannot be passed through cleanly or if customers push back on pricing, gross margin could remain under pressure.
Competitive risk remains from ODMs, hyperscaler in-house procurement, and other server and storage vendors.
PC growth is a weaker link, as the refresh cycle may help in FY27 but might not be durable into FY28 if demand was pulled forward.
Memory: Mizuho Raises PTs Across MU/SNDK/ARM/DELL/ON on Agentic AI + HBM Tightness
The company saw a significant stock price increase due to a huge beat and raise, with fiscal year 2027 revenues projected to increase to $60 billion from $50 billion, AI orders reaching $24.4 billion, and AI server sales at $16.1 billion.
IREN plans to buy Blackwell systems from the company for about $1.6 billion.
The stock rose ahead of earnings on news that Iren will buy $1.6 billion in BW systems from the company.
Stronger AI server demand and resilient enterprise trends are driving upside to quarterly and FY27 guidance.
The company's FY27 AI server target of $50B is viewed as conservative with potential to reach $60-65B.
Dell is successfully passing through costs by frequently updating pricing quotes.
The company was added to the Tactical Outperform list due to continued AI infrastructure momentum and improving enterprise AI demand signals.
There is potential for upside to both the current quarter and FY27 guidance, driven by stronger AI server demand, resilient enterprise PC/storage/networking trends, and increasing deployments across the Dell AI Factory ecosystem.
Potential upside exists from Vera Rubin ramps, expanding neocloud demand, and stronger AI attach opportunities beyond servers.
The stock still has meaningful upside driven by AI server backlog growth and an emerging storage inflection.
The company's $50 billion FY27 AI server target is considered conservative, with potential upside towards $60-65 billion supported by stronger CSP/neocloud demand and ASP expansion.
Traditional server demand is improving, Intel/AMD CPU refresh cycles are accelerating, and there is underappreciated upside from AI-optimized storage as VMware VxRail headwinds roll off into 2HFY27.
Wells Fargo materially raised its numbers across the board and believes the company's $50 billion FY27 AI server target remains conservative, with potential upside toward $60-65 billion supported by stronger CSP/neocloud demand and ASP expansion.
Cleveland was positive, noting that partners appeared well ahead of plan due to pull-forward and large AI server shipments, and that the company is effectively passing through costs by refreshing quotes every 7-14 days.
The company is seen as having the best tactical setup in the near term among IT hardware companies.
Into earnings, MS sees DELL as the best tactical setup near term, while HPQ and NTAP are viewed as most exposed to potential margin/EPS guide-down risk later in the year.
The company remains well positioned to monetize the next leg of AI infrastructure adoption as enterprises move from experimentation toward scaled AI deployment.
The firm highlights expanding Dell AI Factory offerings, deeper NVDA/OpenAI/Palantir partnerships, and growing enterprise AI adoption/use cases across both cloud and on-prem deployments.
The company's broadened AI portfolio spanning rack-scale infrastructure, liquid cooling, storage, agentic AI workstations, and AI orchestration software was emphasized.
Enterprise customers are rapidly transitioning from testing AI to full production deployments, opening up a massive on-prem market opportunity where Dell is highly competitive.
The rise of agentic AI frameworks will drive a significant inflection in CPU and general-purpose computing demand, directly benefiting Dell's hardware portfolio.
Dell is positioned to act as the primary deployment partner for enterprise AI, effectively doing for on-prem enterprises what cloud providers did for cloud computing.
Dell faces near-term headwinds from memory and advanced semiconductor supply shortages, which limit its ability to meet surging demand.
Long-term demand forecasting remains highly unpredictable, making capacity planning difficult.
The company has executed well in AI servers and supply chain positioning, with FY27 AI server revenue guided to ~$50 billion, representing approximately 100% year-over-year growth.
The firm still sees earnings upside potential from AI infrastructure demand and neocloud exposure.
The firm raises its price target to $243 on higher AI assumptions.
Much of the upside from AI is now reflected in the shares after a sharp rerating of approximately 170% compared to the S&P's 30%.
Future earnings revisions are expected to be more modest as valuation has materially expanded to approximately 18-20x EPS.
The firm downgrades the stock to Neutral due to a more balanced risk/reward profile.
The stock received a sympathy bid due to its larger AI server revenues, following positive sentiment in the sector.
Mgmt acknowledged they have found no additional employee involvement beyond those already indicted.DELL +10% got the sympathy bid given their larger AI server revs but HPE +1% given the negative read-through from ANET’s switch silicon and wafer supply const...
BofA reiterated Buy and raised its price target, stating that AI exposure across servers, storage, and PCs is driving stronger growth and supporting a higher valuation multiple.
Improved storage positioning and lower financial leverage enhance flexibility, with margin expansion potential as AI mix increases.
A balanced near-term outlook, despite macro uncertainty, sees upside from AI adoption and premium configurations.
BofA raised its price target, citing improving fundamentals and sustained AI-driven demand.
The company's stock was helped by the AI trade and signs that the rate of change in DRAM price increases is starting to shift.
The stock was down early as Nvidia denied any PC-related acquisition.
The CFO disclosed the sale of 19.5k shares.
CEO Michael Dell emphasized robust AI demand and confirmed the company has the supply and operational capacity to deliver FY27 guidance with potential upside.
Enterprise AI is accelerating, with inference use cases widening, smaller open models driving a broader customer base, and enterprise deals being richer in services, storage, and networking.
Supply chain disruption favors incumbents with decades-long supplier relationships and scale.
The stock reached new highs after BofA raised its price target following a meeting with Michael Dell.
Goldman Sachs is increasingly constructive on enterprise/hybrid AI hardware, expecting enterprises to transition from AI proof-of-concept to deployment, driving traditional data center modernization and new accelerated compute investment.
Branded OEMs like Dell are expected to capture the majority of enterprise AI hardware spending due to their channel presence, service reliability, and go-to-market scale.
Only 7% of organizations have fully integrated AI, suggesting significant runway for growth.
DELL, HPE, NTAP, PENG: Goldman Sachs Increasingly Constructive on Enterprise/Hybrid AI Hardware; Reiterates Buy on All Four
The stock was initiated at Hold with a $170 target due to concerns about higher memory cost inflation.
Gross margins are shrinking as the business mix shifts toward AI servers.
Any throttling of SMCI's chip allocation is expected to benefit the company.
SMCI has always been viewed as big price aggressor, so any throttling of SMCI’s chip allocation will be good for DELL +5%; HPE +3%. For reference, SMCI’s order book includes $13B in orders from Blackwell
The company delivered a huge beat and raise, with its FY27 outlook shifting the narrative back to AI server strength, driven by significant AI orders and shipments, and a growing AI backlog.
The analyst believes the company could achieve high-teens CY27 EPS, which, with a 10x multiple, could lead to a stock price of $180+.
Barclays upgrades the stock to Overweight while maintaining its $148 price target, citing strength in AI server orders, stable AI operating margins, and disciplined cost management.
Concerns around AI server gross margin dilution are largely understood, with Dell managing to MSD margins and planning approximately $9.4 billion of AI server shipments in Q4, supporting approximately 15%–60% AI server growth in FY26–FY27.
Recovering enterprise server and storage demand, rising IP mix in storage, and a large installed base of older-generation servers are driving upgrade opportunities.
The company’s best-in-class opex discipline supports margin expansion and is expected to drive 20%+ EPS growth into FY27.
Goldman Sachs assumed coverage with a Buy rating and set a $165 target, arguing the company is positioned to remain a leading AI server supplier given its engineering depth, ability to scale large deployments quickly, broad services offering, and entrenched enterprise footprint across office and data center environments.
AI server shipments from Taiwan's Big 6 makers surged in December, with combined monthly revenue rising 35.9% year-on-year to a record NT$1.59 trillion, driven by booming demand for AI servers.
AI server shipments from Taiwan's Big 6 makers continued to surge in December, bucking seasonality as combined monthly revenue rose 35.9% year-on-year to NT$1.59 trillion, a fresh record high, amid booming demand. 1/10 $NVDA $DELL $HPE #Alservers #Foxconn #...
The company is expected to benefit from persistent AI strength in GPUs and ASICs in 2026E.
AI strength is expected to persist across GPUs and ASICs (positive NVDA, DELL, AVGO), AI interconnect and optical with scale-up/out/across and 800G/1.6T (positive LITE, CRDO), and continued tailwinds for WFE (positive LRCX) alongside a memory supercycle wit...
Dell announced plans at CES to broaden its personal computer portfolio to target a wider range of price points with new product releases in 2026, and intends to revive a popular PC line.
Dell's PC business underperformed in 2025, losing market share to competitors, because the company focused too much on high-end, premium PCs for commercial customers, missing out on a large part of the market.
Main read-throughs that should get a bid today are other names where tight supply/demand is causing pricing to be strong: HDDs (WDC/STX), NAND (SNDK), and Optical (LITE, COHR). Hearing some fears this morning around rising DRAM prices mean for Hardware (AAP...
ELSEWHERE EElt XYZ+2.59 as Clev was out positive saying distribution and discounts appear to be driving ongoing seller improvements DELL +7% as sell-side was out positive on following analyst day - yesterday and getting helped by the Al bid HPE +49: Continu...
Research through 2026-11-03 · 2025-10-09 to 2026-11-03 · 65 source reports.
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Research through 2026-11-03. Artifact validity does not establish factual accuracy or research freshness.