Dell Technologies (NYSE: DELL) has been one of the market’s most explosive stocks. After bottoming near $120 in March, the tech giant has surged to roughly $248. Now, as Dell approaches its first-quarter earnings report on May 28, Wall Street analysts remain overwhelmingly bullish. JPMorgan Chase recently reiterated its Buy rating on DELL stock and maintained a $280 price target.
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“We are expecting Dell to raise its earnings guidance for FY27 (Jan-end) again from the already raised outlook of 25% growth, although more modest in this case, on account of flow-through of the beat in F1Q27 but constrained by supply visibility, which still needs to catch up to the higher demand outlook for AI servers in particular,” the firm said, according to CNBC.
Meanwhile, analysts at Citigroup raised their price target on DELL to $290 from $235, citing “strong neocloud/sovereign AI demand and improving enterprise mix” as key growth drivers, according to Seeking Alpha.
Analysts at Mizuho Financial Group also boosted their Dell price target, increasing it to $300 from $260. The firm pointed to agentic AI workloads as a durable catalyst for sustained server demand and recurring revenue growth.
What Wall Street Expects from Dell Earnings
Over the past year, Dell has transformed from a traditional PC company into one of Wall Street’s premier artificial intelligence infrastructure plays.
The company’s rally has been fueled by surging demand for AI servers powered by NVIDIA GPUs, large-scale enterprise and hyperscaler orders, and growing expectations that the company will remain a major beneficiary of the AI spending boom.
Heading into earnings, expectations are high for big numbers.
Analysts expect Dell to report fiscal first-quarter revenue in the mid-$35 billion range, with adjusted earnings per share projected between $2.90 and $3.00. Investors will also be closely watching the company’s guidance for the remainder of the fiscal year.
Wall Street Will Be Focused on AI Server Demand
Dell previously projected $50 billion in AI server revenue for the fiscal year and disclosed an AI server backlog of approximately $43 billion. According to Dell CEO Michael Dell, the company’s AI server business has expanded rapidly, growing “from $2 billion to $10 billion to $25 billion,” with expectations of reaching “$50 billion this year,” according to MarketBeat.com.
The company also noted that more than 4,000 customers are now using what the company calls “AI factories,” adding that the industry remains in the “steep part of the S-curve” for AI adoption.
Another factor supporting DELL’s momentum is the broader acceleration in enterprise AI spending. Many corporations are still in the early stages of deploying generative AI workloads, which require substantial investments in servers, storage, networking equipment, and data center infrastructure. Dell has positioned itself as a one-stop provider for many of these needs, enabling it to capture spending across multiple layers of the AI ecosystem.
Investors will also pay close attention to margins during the earnings report. While AI servers have become a major growth driver, analysts want to see whether the company can maintain profitability as competition intensifies and supply chain constraints remain in focus. Any signs of improving margins or stronger-than-expected free cash flow could provide another catalyst for the stock. Conversely, weaker guidance or concerns about AI demand normalization could trigger volatility after the stock’s massive run higher in recent months.
Can DELL Stock’s AI Momentum Continue After Earnings?
With shares already posting a massive rally this year, Dell now faces a high-stakes earnings report that could determine whether the momentum continues. Investors will be looking for stronger guidance, continued growth in AI server demand, and evidence that Dell can keep scaling its artificial intelligence infrastructure business.
If the company delivers another strong quarter and raises its outlook, analysts believe DELL stock could have additional upside ahead.
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