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The headline: All 6 firms raised their price targets, with analysts highlighting that Dell’s AI boom is now lifting not just servers, but storage, traditional compute and overall profitability.
Average PT: $614
Implied upside from $464: ~32%
Updated analyst views:
• Melius: Buy — $735 from $650 (+58%)
• Raymond James: Outperform — $617 from $500 (+33%)
• BofA: Buy — $600 from $505 (+29%)
• Mizuho: Outperform — $600 from $500 (+29%)
• Evercore ISI: Outperform — $575 from $550 (+24%)
• Piper Sandler: Overweight — $558 from $497 (+20%)
Why analysts are getting more bullish:
• Q2 revenue reached $47.0B vs. ~$44.9B expected, while EPS of $7.04 crushed the ~$4.90 consensus
• FY27 revenue guidance surged to ~$192B from $167B
• FY27 EPS guidance jumped to ~$25.50 from $17.90
• AI server revenue reached $16.4B, with $61B of orders and backlog climbing to ~$95B
• Dell raised its FY27 AI server revenue outlook to ~$74B from $60B
• Traditional server revenue surged 122% and storage grew 26%, showing AI demand is spreading across the broader infrastructure stack
The margin surprise: Gross margin reached 21.1%, far above expectations, while stronger storage mix and AI scale helped offset component inflation.
The key constraint: Demand continues to exceed available supply across DRAM, NAND, CPUs and other components — BofA estimates demand is running roughly 30% above supply in FY27.
Bottom line: Dell is evolving from an AI-server volume story into a broader infrastructure earnings story. AI is driving server demand, pulling through higher-margin storage and traditional compute, while the massive guidance raise shows the opportunity is translating directly into revenue and earnings.