TLDR
- Dell Technologies stock surged 9% to $165 per share after raising long-term revenue growth targets from 3-4% to 7-9% through fiscal 2030
- The company doubled its annual EPS growth forecast to 15% and committed to 10% yearly dividend increases through 2030
- Dell’s AI business generated $20 billion in revenue over two years as demand for AI servers accelerates
- Multiple Wall Street firms raised price targets, though some analysts question AI server adoption rates and margin pressure
- The stock has climbed 40.4% year-to-date and recently hit a new 52-week high
Dell Technologies shares jumped 9% on Wednesday, closing near $165 after the company unveiled upgraded financial targets driven by artificial intelligence infrastructure demand.
The computer hardware maker raised its long-term annual revenue growth outlook to 7-9%. This represents more than double its previous 3-4% forecast through fiscal 2030.
Dell also increased its adjusted earnings per share growth target to 15% annually. The company updated guidance for both the third quarter and full fiscal 2026.
CEO Michael Dell cited strong customer demand for AI-related products and services. Vice chairman Jeff Clarke disclosed the company’s AI business produced $20 billion in revenue during the past two years.
Dell recently raised $4.5 billion through a senior note offering to bolster its balance sheet. The company also pledged to increase its quarterly dividend by at least 10% each year through fiscal 2030.
Wall Street Reacts with Higher Price Targets
Several major investment banks lifted their Dell price targets following the announcement. Bank of America Securities, Citi, Morgan Stanley, JPMorgan, and Mizuho all increased their forecasts.
Bank of America analyst Wamsi Mohan set a $170 price target. He highlighted potential gains from AI-enhanced PCs and the ongoing PC refresh cycle.
JPMorgan’s Samik Chatterjee maintained an Overweight rating with a $165 target. He described Dell’s margin story as “show-me,” indicating investors want concrete results before fully embracing the optimistic projections.
Morgan Stanley analyst Erik Woodring noted AI server sales could squeeze profit margins due to elevated production costs. He expects Dell’s core business improvements to offset some margin pressure.
Mixed Views on AI Server Growth
TD Cowen analyst Krish Sankar maintained a Hold rating while raising his price target from $130 to $150. He questioned the pace of AI server adoption among businesses.
Sankar warned that uncertainty around AI server demand could strain Dell’s finances. He pointed to potential increases in research and development expenses.
The analyst also observed that the current PC replacement cycle appears similar to previous periods. He noted Dell’s operating margins remain flat despite revenue growth expectations.
Dell currently holds a Moderate Buy consensus rating on Wall Street. This rating reflects 11 Buy recommendations and six Hold ratings from 17 analysts covering the stock.
The average analyst price target sits at $160.87, suggesting roughly 2% downside from current levels. Dell shares have gained 40.4% since January and recently reached a new 52-week high.
Dell unveiled its PowerEdge XR8720t server for telecom and edge computing workloads. The new product launches globally in the first quarter of 2026.
