- Dell reported better-than-expected fiscal second-quarter results, which contributed to a positive outlook for the company.
- Dell raised its full-year guidance, now expecting adjusted earnings of $25.50 per share on $192 billion in revenue by the end of fiscal 2027.
- AI server revenue is projected to reach $74 billion for fiscal 2027, indicating strong demand in the sector.
- Citi and Bank of America raised their price targets on Dell shares to $600, implying a 41% upside from the previous close.
- Truist raised its price target to $505, citing a record AI server backlog of $95 billion, which provides visibility into fiscal year 2028.
- Shares of Dell have gained 238% year to date, driven by high demand for its products due to the adoption of artificial intelligence.
- Truist noted broad demand across various sectors, including neoclouds, model builders, enterprises, and sovereign customers.
- Dell's fiscal second-quarter results showed a significant boost in its infrastructure solutions group revenue, which grew by 89%.
Dell Technologies has significantly raised its full-year revenue forecast, now expecting adjusted earnings of $25.50 per share on $192 billion in revenue by fiscal 2027, surpassing analyst expectations of $18.92 earnings per share on $172.67 billion in revenue.
The company attributes this optimistic outlook to a record $95 billion AI server backlog, driven by soaring demand for its products amid the rapid adoption of artificial intelligence technologies. Bank of America noted that the demand is broad across neoclouds, model builders, enterprises, and sovereign customers, indicating a robust market for Dell's offerings.
Dell's stock has surged 238% year-to-date, reflecting investor confidence bolstered by the company's strong fiscal second-quarter results, which included an 89% growth in its infrastructure solutions group revenue. The stock price reached $445.51, with a market cap of $282 billion, despite a recent 8.4% decline over the past week.
Analysts have responded positively, with Citi raising its price target for Dell to $515 and Bank of America to $600, indicating a potential 41% upside from recent trading levels. Truist Securities also raised its target to $505, citing accelerating AI orders and durable tailwinds from AI-related demand.
Overall, Dell's strategic positioning in the AI market and its strong financial performance have inspired confidence among investors and analysts alike.
“Citi and Bank of America set $600 price targets, implying 41% upside, while Truist raised its target to $505 on a record $95 billion AI server backlog. Dell now expects $192 billion revenue and $25.50 EPS for fiscal 2027, above analyst estimates.”
CNBC
