Melius Research raised its Dell price target to a Street-high $735, while BofA and Mizuho lifted their targets to $600. Raymond James moved to $617 and Evercore ISI increased its target to $575. Morgan Stanley, which remains more cautious, lifted its target to $499.
At $461.50, the $735 target implies roughly 59% additional upside.
$95B Backlog Resets the Dell Stock Story
The enthusiasm comes from numbers that were substantially stronger than Wall Street expected.
Dell reported record quarterly revenue of $47 billion, up 58% year over year, while adjusted earnings jumped 203% to $7.04 per share. The company also raised full-year revenue guidance from $167 billion to $192 billion and adjusted EPS guidance from $17.90 to $25.50.
The largest catalyst was AI infrastructure.
Dell booked $60.9 billion of AI server orders during the quarter, generated $16.4 billion in AI-server revenue and exited July with a record $95 billion backlog. Its fiscal 2027 AI-server revenue forecast was raised to $74 billion.
Coinpaper’s initial earnings coverage focused on that dramatic earnings reversal. The follow-up question is whether those orders can support the stock after its extraordinary 2026 advance.
Analysts See More Than Just AI Servers
One reason analysts remain bullish is that Dell’s strength is broadening.
Traditional server and networking revenue grew 122% year over year, while storage increased 26%. Melius specifically highlighted storage, one of Dell’s more profitable businesses, as another beneficiary of the AI buildout.
That fits a broader shift toward AI infrastructure stocks, where spending is spreading from Nvidia GPUs into servers, networking, storage, memory and power.
Dell is also closely tied to Nvidia’s expansion. Its systems use Nvidia accelerators, while Nvidia recently posted $96.2 billion in quarterly revenue and guided to $108 billion for the current quarter, reinforcing the scale of underlying AI demand.
The Rally Now Has a Valuation Test
The stock is no longer cheap by Dell’s historical standards.
Reuters put Dell at roughly 18 times forward earnings, above Hewlett Packard Enterprise and Super Micro, meaning investors are increasingly paying for sustained AI growth rather than simply a traditional hardware business.
There are also supply risks. DRAM, NAND, CPUs and other components remain constrained, while rising memory costs have already pushed up some AI server prices.
Still, Dell’s quarter changed the near-term debate. Investors are no longer asking whether AI server demand exists. The question is how much of the $95 billion backlog Dell can convert into revenue and profit, and whether that conversion can justify another leg higher after an already extraordinary 2026 rally.
