Key Takeaways
- Shares of Dell Technologies declined 3.39% on August 28 despite encouraging analyst coverage before the September 1 earnings release.
- J.P. Morgan reaffirmed its Buy recommendation and $565 price objective, anticipating management will boost revenue projections once more.
- Projections for AI-server market expansion in 2026 have surged past 80%, a significant increase from the 64% forecast made just three months earlier.
- Broader server demand predictions for 2026 have climbed to 30%, exceeding the prior 22% estimate.
- Consensus estimates point to Q2 earnings of $4.91 per share with revenues approaching $44.5 billion.
Dell Technologies (DELL) shares experienced a 3.39% decline on August 28, occurring simultaneously with J.P. Morgan expressing continued confidence in the technology giant just days before its scheduled Q2 earnings announcement on September 1.
Analyst Joseph Cardoso from J.P. Morgan reaffirmed his Buy recommendation on Dell Technologies while establishing a $565 price objective. His analysis suggests the company may elevate its Fiscal Year 2027 revenue outlook when financial results are disclosed.
The company currently projects 47% revenue expansion for this fiscal year. While this represents robust growth, Cardoso anticipates that actual performance could prompt leadership to implement another upward revision.
The optimistic perspective centers predominantly on artificial intelligence infrastructure developments. Industry analyst firm 650 Group recently updated its AI-server market projections, now anticipating growth exceeding 80% year-over-year in 2026. This represents a substantial increase from the 64% growth rate predicted merely 90 days prior.
This rapid acceleration in forecasts indicates demand is significantly outpacing earlier predictions. As Dell Technologies holds a prominent position in this market segment, enhanced AI-server demand directly translates to improved revenue prospects.
Conventional Server Market Contributing to Positive Momentum
Artificial intelligence isn’t the sole factor fueling optimism. General server demand is also demonstrating upward momentum. Current projections for comprehensive server market growth in 2026 have risen above 30%, representing a notable increase from the previous 22% estimate.
According to J.P. Morgan, recent quarterly results throughout the sector and proprietary channel verification support this enhanced forecast. This reinforces the firm’s conviction that Dell’s existing guidance remains cautious.
Cardoso acknowledges that the upcoming guidance adjustment may not match the magnitude of the previous increase. Dell implemented a substantial upward revision during the last quarter. Nevertheless, the trajectory remains consistently positive.
Analyst consensus projects adjusted earnings of $4.91 per share and GAAP earnings of $4.43 per share for the upcoming quarter. Revenue forecasts center around $44.5 billion, representing a 51% increase from the $29.78 billion reported during the comparable period last year.
Analyst Sentiment on DELL Stock
Dell Technologies has exceeded earnings expectations in five out of the past six reporting periods. The singular miss occurred in the quarter concluding April 2025, delivering $1.55 compared to the anticipated $1.69.
The latest quarter ending April 2026 delivered an impressive performance. Dell reported earnings of $4.86 per share, substantially above the $2.94 estimate, representing a remarkable 65% positive surprise. Such results contribute significantly to sustained positive market sentiment.
Among Wall Street analysts, DELL stock holds a Moderate Buy consensus rating, derived from 12 Buy recommendations, five Hold positions, and zero Sell ratings issued during the previous three months.
The average price target over a 12-month horizon stands at $519.36, suggesting approximately 14% appreciation potential from present trading levels. The median price objective is $500, indicating roughly 9.6% upside from the most recent closing price of $456.24.
Dell Technologies is scheduled to announce Q2 financial results on September 1, covering the period that concluded July 31, 2026.
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