Dell Technologies (NYSE) DELL) is progressing as money responding effectively to the increasing demand of the industry artificial intelligence construction.
The company went from a traditional PC and server provider to a major AI player, a shift that has seen its profits improve. property price.
By press time, DELL’s stock was trading at $295 after closing on Friday, down about 17%, while the stock has gained 130% for the year.
The main driver behind the Dell conference is the explosive demand for AI-optimized servers and infrastructure. Dell ended the 2026 financing, which ended in January 2026, with a remaining portfolio of $ 43 billion for AI.
In the fourth quarter alone, the company reported $34 billion in AI-related orders and shipped between $9 billion and $9.5 billion in AI servers, which represents a 342% year-over-year increase.
At the same time, Dell is bigger finances performance also confirmed this. Revenue for 2026 rose 19% year over year to $113.5 billion, while adjusted earnings per share rose 27% to $10.30.
The Infrastructure Solutions Group, which includes servers, delivered the strongest results, with AI supporting the fastest-growing part of the total revenue.
Looking ahead, Dell raised its long-term outlook through fiscal 2030, projecting annual revenue growth of 7% to 9% and adjusted EPS growth above 15%, driven by continued use of AI infrastructure.
The company also predicted AI economic growth in the 2027 financial year, bolstering confidence in its growth.
Wall Street is bearish on DELL stock
Despite the stock rally, Wall Street analysts are predicting what will happen to DELL’s stock over the next 12 months. According to data from 17 Wall Street researchers who were followed by TipRanksDell maintains a ‘Moderate Buy’ rating.
Of these, 12 analysts recommend buying the shares, four suggest holding, and one advises selling. The average 12-month price target is $228.87, implying a potential downside of about 22.5%, while the high-end target of $300 and the low-end target of $150 indicate different views on the stock’s valuation and potential for the technology sector.
On May 22, Wells Fargo analyst Aaron Rakers reiterated his ‘Overweight’ rating and raised his price target to $270 from $180, citing Dell AI’s strong momentum and a positive position ahead of its earnings.
In the past, Morgan Stanley Analyst Erik Woodring raised his target to $170 from $110 and maintained “Underweight”. While the company acknowledged Dell’s long-term AI growth prospects, it remained cautious on the price increase after its recent conference call.
BofA Securities was also optimistic, with analyst Wamsi Mohan raising his price target to $280 from $246 on May 18 while maintaining a “Buy” rating. The review showed continued strong demand for server AI and improved business processes.
JPMorgan followed by its upward revision on May 15, increasing its target to $280 from $205 and maintaining ‘Overweight’. The bank cited a reduction in the stress of memory-related costs and increased revenue from AI servers.
Not all companies have changed dramatically, however. UBS analyst David Vogt downgraded Dell to ‘Neutral’ from Buy on May 11, although he still raised his price target to $243 from $167. UBS said Dell’s business fundamentals remain strong, but said the stock’s recent rally has made it a good reward.
