TLDR
- Dell stock fell 3.39% despite positive analyst commentary ahead of its September 1 earnings report.
- J.P. Morgan maintained a Buy rating with a $565 price target, expecting another revenue guidance increase.
- AI-server market growth forecasts for 2026 jumped to over 80%, up from 64% just 90 days ago.
- Overall server demand forecasts for 2026 rose to 30%, up from a previous estimate of 22%.
- Wall Street expects Q2 earnings of $4.91 per share and revenue of around $44.5 billion.
Dell Technologies (DELL) stock dropped 3.39% on August 28 even as J.P. Morgan backed the company ahead of its Q2 earnings report due September 1.
J.P. Morgan analyst Joseph Cardoso kept a Buy rating on Dell and set a price target of $565. He believes Dell could raise its Fiscal Year 2027 revenue guidance again when it reports results.
Dell already forecasts 47% revenue growth this year. That is a strong number, but Cardoso thinks the actual results could push management to revise higher once more.
The bullish case rests heavily on AI infrastructure. Industry researcher 650 Group now expects the AI-server market to grow more than 80% year-over-year in 2026. Just three months ago, that same forecast stood at 64%.
That is a sharp move in a short period of time, and it suggests demand is running well ahead of earlier expectations. Dell is one of the key players in this space, so stronger AI-server demand flows directly into its revenue picture.
Traditional Servers Also Lifting the Outlook
It is not just AI driving the optimism. Broader server demand is also tracking higher. Forecasts for overall server growth in 2026 are now above 30%, compared to a prior estimate of 22%.
J.P. Morgan said recent earnings across the industry and its own channel checks back up this stronger outlook. That gives the bank more confidence that Dell’s current guidance is conservative.
Cardoso does not expect the next guidance raise to be as large as the previous one. Dell already made a meaningful upward revision three months ago. Still, the direction looks the same.
Wall Street is expecting adjusted earnings of $4.91 per share and GAAP earnings of $4.43 per share for the quarter. Revenue is forecast to come in around $44.5 billion, up 51% from $29.78 billion in the same period last year.
What Analysts Think of DELL Stock
Dell has beaten earnings estimates in five of the last six quarters. The one miss came in the quarter ending April 2025, when it came in at $1.55 versus an estimate of $1.69.
The most recent quarter ending April 2026 was a big beat. Dell posted $4.86 per share against an estimate of $2.94, a 65% surprise to the upside. That kind of result is part of why sentiment has stayed positive.
Across Wall Street, DELL carries a Moderate Buy consensus based on 12 Buy ratings, five Holds, and zero Sells over the past three months.
The average 12-month price target sits at $519.36, implying around 14% upside from current levels. The median target is $500, roughly 9.6% above the last closing price of $456.24.
Dell is set to report Q2 results on September 1 for the period ending July 31, 2026.
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