Key Highlights
- Dell (DELL) shares reached a record high of $191.38, climbing approximately 49% since the start of the year
- Goldman Sachs upgraded its price target from $195 to $215 while reaffirming its Buy recommendation
- AI-optimized server sales totaled $8.95B in Q4 FY26, representing a 342% increase from the previous year
- The company entered FY27 with an unprecedented AI backlog of $43 billion
- Several Wall Street firms including Mizuho, Evercore ISI, and BofA have raised their targets to the $205–$215 range
Dell Technologies (DELL) shares touched a historic peak of $191.38 during Wednesday’s trading session on April 16, following Goldman Sachs’ decision to increase its price objective to $215 from the previous $195 target while maintaining its Buy recommendation.
The technology company’s shares have surged approximately 49% year-to-date and delivered an impressive 117% return over the trailing twelve months. Goldman’s upgrade comes amid a broader wave of optimistic analyst revisions from major financial institutions.
Goldman’s bullish outlook centers on two critical factors: expanding AI server demand and Dell’s competitive positioning in DRAM supply chain management. This supply advantage becomes increasingly crucial as AI infrastructure expansion confronts component availability challenges.
With shares trading near $187.70 at the time of the target revision, Goldman’s updated forecast suggests approximately 15% upside potential from current trading levels.
Dell delivered AI-optimized server revenue of $8.95 billion during Q4 FY26 — representing a remarkable 342% year-over-year increase. The company’s AI backlog heading into FY27 reached an unprecedented $43 billion, providing exceptional revenue visibility.
Full fiscal year 2026 revenue reached $113.54 billion, marking a 19% year-over-year expansion. Non-GAAP earnings per share hit $10.30.
Looking ahead to FY27, Dell provided guidance for total revenue between $138 billion and $142 billion, with AI-optimized server revenue projected at approximately $50 billion.
Wall Street Consensus Shifts Higher
Goldman represents just one voice in a chorus of bullish analysts. Mizuho elevated its price objective to $215 from $180, highlighting robust AI server demand expected to persist throughout 2026 and 2027.
Evercore ISI increased its target to $205 from $160, emphasizing the sustained strength in CPU-based server demand. BofA Securities similarly raised its target to $205 while keeping its Buy rating intact, following discussions with CEO Michael Dell regarding AI infrastructure developments.
Presently, Dell commands 19 buy or strong buy recommendations across Wall Street, with only a single sell rating. Goldman’s $215 target exceeds the Street consensus, signaling a more optimistic perspective on Dell’s AI market position.
Wolfe Research launched coverage with a Peerperform rating, highlighting potential headwinds from memory pricing volatility and supply constraints. Analyst George Rogers observed that AI server revenue currently represents 27% of Dell’s total revenue mix and continues expanding.
Valuation Metrics and Profitability Trends
Trading at a forward price-to-earnings multiple of 14x and a PEG ratio of 0.74, Dell appears undervalued relative to the broader market despite projecting 25% EPS growth for FY27.
This disconnect between growth trajectory and valuation multiple forms the foundation of Goldman’s investment thesis — a high-growth enterprise trading at value stock multiples.
Margin pressure represents a legitimate concern. GAAP gross margin contracted to 20% in Q4 FY26 from 24% in the year-ago period, as the lower-margin AI server segment expands its revenue contribution.
Regarding capital allocation, Dell increased its quarterly dividend by 20% and authorized an additional $10 billion for share buybacks. The company returned a record $7.5 billion to shareholders throughout FY26.
Dell’s Infrastructure Solutions Group posted $19.6 billion in Q4 FY26 revenue, representing a 73% year-over-year surge.
Goldman’s updated $215 price target represents the most recent in a series of upward analyst revisions driven primarily by Dell’s accelerating AI server operations and its record $43 billion order backlog entering fiscal 2027.
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