TLDR
- Dell $DELL stock jumped 9.9% to $484.49 after Super Micro’s blowout AI server guidance boosted sentiment across the sector.
- Revenue surged 87.5% year over year to $43.84 billion, with EPS of $4.86 crushing the $2.96 consensus estimate.
- Dell entered the fiscal year with a $43 billion backlog of AI-optimized server orders, with AI server revenue up 757% last quarter.
- Analysts hold a “Moderate Buy” consensus with an average price target of $492.43; Citigroup lifted its target to $515.
- Insiders sold 3.43 million shares worth roughly $1.45 billion over the past three months, a factor that had previously weighed on sentiment.
Dell Technologies (DELL) stock climbed 9.9% on Wednesday, closing at $484.49, after Super Micro Computer’s stronger-than-expected fiscal 2027 outlook sent a positive signal through the AI server space.
Super Micro projected fiscal 2027 revenue of $65 billion to $72 billion, well above the $52.5 billion consensus estimate. Its stock jumped more than 14%, and that enthusiasm spilled over to Dell, which benefits from the same wave of enterprise AI infrastructure spending.
Dell came into the session already carrying momentum. The stock had closed the prior session at $440.97, and Wednesday’s move added roughly $44 per share in a single day.
The broader setup helps explain the reaction. Dell entered its current fiscal year with a $43 billion backlog of AI-optimized server orders. That is not a small number, and it tells you demand is not slowing down.
Blowout Quarter Sets the Stage
Dell’s most recent quarterly results gave investors plenty to work with. Revenue hit $43.84 billion, up 87.5% compared to the same period last year. That came in well above analyst estimates of $35.74 billion.
EPS of $4.86 beat the $2.96 consensus by $1.90. AI server revenue alone rose 757% in the quarter, a number that tends to get attention.
Dell has set full-year FY2027 guidance at $17.90 EPS and Q2 2027 guidance at $4.80 EPS. Analysts currently estimate $17.77 EPS for the full year.
The company also pays a dividend. A quarterly payment of $0.63 per share was made on July 31, representing a $2.52 annualized yield of around 0.5%.
Analyst Targets Move Higher
Wall Street has been adjusting targets upward. Citigroup raised its target from $475 to $515 and kept a “buy” rating. Sanford C. Bernstein lifted its target from $280 to $500 with an “outperform” rating.
HSBC and CLSA both upgraded the stock to “buy” and “outperform” in May. Wall Street Zen went further, moving its rating to “strong-buy.”
The current analyst breakdown shows 20 buy ratings, one strong buy, 10 holds, and one sell. The average target sits at $492.43.
The stock trades at a P/E of 38.48 and a P/E/G ratio of 0.98. Its 50-day moving average is $417.18, and the 200-day moving average is $265.98.
One area investors have been watching is insider activity. Over the past three months, insiders sold 3.43 million shares worth approximately $1.45 billion. Director-linked entities Silver Lake Partners and SL SPV-2 both reduced their positions by more than 80% in early June.
Institutional investors hold 76.37% of the stock. Several funds increased their positions in Q2, including NewEdge Advisors, which raised its stake by 147.2%.
Dell also expanded its distribution partnership with D&H Distributing in North America, giving more resellers access to its storage and server lineup.
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