TLDR
- Dell stock is up 350% over the past year, yet analysts still see upside ahead.
- Fiscal Q2 revenue jumped 58% to a record $47 billion; adjusted EPS tripled to $7.04.
- AI server revenue doubled to $16.4 billion, with new orders running at 3.7x that amount.
- Evercore raised its price target to $650 and kept Dell as a top pick.
- Wall Street holds a Moderate Buy consensus with an average price target of $595.17.
Dell stock (DELL) has surged 350% over the past year, yet analysts are not hitting the brakes. After a blowout fiscal second quarter, both the fundamentals and Wall Street sentiment suggest there could be more room to climb.
Fiscal Q2 revenue hit a record $47 billion, up 58% year over year. That beat the $44.9 billion Street consensus comfortably. Adjusted EPS tripled to $7.04, well above the $4.91 estimate. AI server orders reached $60.9 billion, and Dell still finished the quarter with a $95 billion backlog.
Infrastructure Solutions Group (ISG) was the standout. Revenue surged 89% to $31.8 billion, and operating income climbed 225% to $4.8 billion. The segment’s 15% margin expanded by 620 basis points.
AI server revenue doubled to $16.4 billion, while new orders came in at 3.7x that figure. Dell shipped a record amount and still left $95 billion waiting for delivery. Traditional servers and networking grew 122%, storage rose 26%, and commercial-client revenue was up 22%.
Dell COO Jeff Clarke described customer spending as turning IT from a cost center into a “value driver.” The numbers back that up.
Storage: The Overlooked Opportunity
Beyond compute, storage is emerging as a key part of the story. Dell’s PowerScale and PowerStore products are increasingly tied to AI workflows, feeding unstructured data into AI systems and supporting surrounding databases and applications.
Storage revenue reached $4.9 billion in Q2. Dell’s own IP demand has outgrown the market for six straight quarters, and PowerStore has posted double-digit demand growth for nine consecutive quarters. Management expects to add more than $2.5 billion of storage revenue this year, calling it a “tremendous margin opportunity.”
Because Dell owns the IP behind these products, they carry better margins than assembling systems around third-party GPUs.
Enterprise AI Is Still Early
Dell now has more than 6,500 AI Factory customers. Of those, 3,300 came in just three quarters, after the first 3,200 took eight quarters to accumulate. That pace is accelerating.
Management expects Q3 revenue to rise 81% to $49 billion and raised full-year AI server guidance to $74 billion, three times last year’s level.
On valuation, the stock currently trades at roughly 20.6x the Fiscal 2027 consensus EPS estimate of $25.88. Looking further out, consensus has EPS at $28.61 in Fiscal 2028 and $34.56 in Fiscal 2029. Applying a 20x multiple to the 2029 figure would put the stock near $691, about 29% above current levels.
Evercore raised its price target on Dell to $650 from $575 on Wednesday, keeping it as a top pick. Analyst Amit Daryanani pointed to neocloud deployments, enterprise AI adoption, supply chain advantages, and capital allocation as key reasons. His bull case puts EPS above $40 in Fiscal 2028 and sees a path to $1,000 per share.
Wall Street’s overall consensus sits at Moderate Buy, based on 14 Buy ratings and seven Hold ratings. No analyst currently rates DELL a Sell. The average price target of $595.17 implies roughly 11% upside over the next 12 months.
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