<\/p>\n
Dell just turned in one of its strongest quarters in company history, and Wall Street is paying attention.<\/p>\n
Revenue rose, profit soared, and demand for AI infrastructure kept climbing. Now one of Wall Street’s biggest names is raising its price target on the AI stock.<\/p>\n
Goldman Sachs analyst Katherine Murphy raised her price target on Dell Technologies (DELL) to $570 from $510 while keeping a “Buy” rating, according to a research note first reported by TheFly. <\/p>\n
Goldman Sachs is bullish on Dell stock<\/p>\n
To understand why Goldman Sachs (GS) has raised its Dell stock price target, it helps to look at what the company reported in the recent quarter.<\/p>\n
Dell posted revenue of $47 billion for its fiscal second quarter (ending in July), up 58% from a year earlier. Earnings per share came in at $7.04, up 203%. <\/p>\n
Both numbers beat analyst expectations, and management raised guidance for the rest of the year.<\/p>\n
The company’s Infrastructure Solutions Group, which includes AI servers, traditional servers, and storage, was the biggest driver. <\/p>\n
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The segment brought in a record $31.8 billion in revenue, up 89%, with operating income more than tripling.<\/p>\n
AI demand was the standout. <\/p>\n
Dell booked $60.9 billion in AI server orders in the quarter alone, its best quarter ever for that metric, and ended the period with a backlog of $95 billion. <\/p>\n
Over the past year, the company has booked more than $130 billion in AI server orders total.<\/p>\n
Traditional servers grew even faster than AI servers on a percentage basis, up 122%, as businesses replace aging data center equipment. <\/p>\n
Storage revenue rose 26%, marking six straight quarters of demand growth above the broader market.<\/p>\n
What’s behind the Dell stock price target hike<\/p>\n
Murphy pointed to a few specific factors behind the higher Dell stock price target. Her note credited the beat and raise to enterprise refresh activity and AI demand, along with better-than-expected profitability.<\/p>\n
Here’s a quick breakdown of what she highlighted:<\/p>\n
Durable enterprise IT hardware demand tied to data center modernization<\/p>\n
Growing adoption of agentic AI across enterprise customers<\/p>\n
Accelerating AI server demand and order growth<\/p>\n
Operating margin outperformance driven by scale<\/p>\n
A more favorable mix of higher-margin storage products<\/p>\n
Dell’s own management has said storage products built on the company’s proprietary technology, rather than partner brands, carry better margins. As that mix improves, profitability should expand.<\/p>\n
Dell executives echoed that theme on the earnings call. Chief Operating Officer Jeff Clarke pointed to the sheer scale of the aging equipment still sitting in corporate data centers as a reason the growth has room to continue.<\/p>\n
“We still have 1.2 million assets that are 14G or older in the install base,” Clarke told analysts. They have to be upgraded.”<\/p>\n
Goldman Sachs expects a broader replacement cycle and accelerating AI spending to drive revenue and earnings higher. <\/p>\n
According to consensus data compiled by Tikr.com, analysts tracking DELL stock forecast revenue to increase from $113.5 billion in fiscal 2026 (ending in January) to $277 billion in fiscal 2030. <\/p>\n
In this period, adjusted earnings are projected to expand from $10.30 per share to $42.72 per share. <\/p>\n
If DELL stock trades at 20x forward earnings, up from its current 17.7x multiple, it could surge roughly 90% over the next three years. <\/p>\n
Dell stock has more than tripled in the past year, due to stellar AI growth.<\/p>\n
NurPhoto \/ Getty Images<\/p>\n
What’s next for Dell stock price?<\/p>\n
Dell also raised its full-year outlook alongside the quarterly results. <\/p>\n
The company now expects full-year revenue of $192 billion, up roughly 70% from the prior year, with earnings per share of $25.50, up about 150%.<\/p>\n
Management said operating expenses are on pace to fall to about 8% of revenue for the year, the lowest level in the company’s 42-year history.<\/p>\n
Lower overhead combined with higher revenue is a big part of why profits are growing faster than sales.<\/p>\n
For investors watching Dell stock, the combination of a fresh price target increase, a maintained Buy rating, and management’s confidence in the second half of the year points to a company Wall Street believes still has room to run. <\/p>\n
Whether that plays out will depend on Dell continuing to convert its growing AI backlog into actual shipped revenue, something the company will update investors on again next quarter.<\/p>\n
Out of the 21 analysts covering Dell stock, 14 recommend “Buy”, and seven recommend “Hold”. The average Dell stock price target is $586, 19% above the current price.<\/p>\n
Related: Morgan Stanley flags unexpected Dell stock update after earnings<\/p>\n
#Goldman #Sachs #resets #Dell #stock #price #target<\/p>\n","protected":false},"excerpt":{"rendered":"
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