Key Highlights
- Dell Technologies shares reached a record peak of $191.38, climbing approximately 49% in 2025
- Goldman Sachs elevated its price objective from $195 to $215 while affirming its Buy recommendation
- AI server revenue soared to $8.95B in fiscal Q4 2026, representing a 342% annual increase
- The company entered FY27 with an unprecedented $43 billion AI backlog
- Wall Street analysts including Mizuho, Evercore ISI, and Bank of America have set ambitious targets between $205 and $215
Shares of Dell Technologies (DELL) surged to an unprecedented high of $191.38 on Wednesday, April 16, following Goldman Sachs’ decision to increase its price objective to $215 from the previous $195 mark while maintaining its positive Buy stance.
The technology giant’s shares have advanced approximately 49% since the beginning of the year and have delivered an impressive 117% gain over the trailing twelve months. Goldman’s upgraded outlook arrived amid a broader trend of positive analyst revisions from major financial institutions.
Goldman’s optimistic projection hinges on two fundamental drivers: surging demand for AI-enabled servers and Dell’s competitive positioning in DRAM procurement. This supply chain advantage has become increasingly critical as artificial intelligence infrastructure expansion encounters component availability challenges.
Trading near $187.70 at the time of the target adjustment, Goldman’s revised forecast suggests approximately 15% additional appreciation potential from prevailing levels.
Dell disclosed AI-optimized server revenue of $8.95 billion during its fourth fiscal quarter of 2026 — representing a remarkable 342% increase compared to the prior year period. The company’s AI order backlog entering fiscal 2027 reached an extraordinary $43 billion, providing substantial revenue predictability.
Total fiscal year 2026 revenue registered at $113.54 billion, marking a 19% annual expansion. Adjusted earnings per share hit $10.30.
Looking ahead to FY27, Dell provided guidance calling for total revenue between $138 billion and $142 billion, with AI-optimized server revenue projected at roughly $50 billion.
Wall Street Upgrades Gain Momentum
Goldman is far from the only firm raising expectations. Mizuho Securities lifted its price objective to $215 from $180, highlighting robust AI server demand expected to persist throughout 2026 and 2027.
Evercore ISI increased its target to $205 from $160, emphasizing the sustained strength in CPU-based server demand. Bank of America Securities similarly advanced to $205 while retaining its Buy rating, following discussions with CEO Michael Dell regarding AI infrastructure initiatives.
Street-wide, Dell currently holds 19 buy or strong buy recommendations against just a single sell rating. Goldman’s target exceeds consensus estimates, reflecting a more optimistic perspective on Dell’s artificial intelligence market position.
Wolfe Research launched coverage with a Peerperform designation, identifying memory pricing and supply chain vulnerabilities as potential headwinds. Analyst George Rogers observed that AI server sales currently represent 27% of Dell’s total revenue with expectations for continued expansion.
Valuation Metrics and Profitability Considerations
Trading at a forward price-to-earnings multiple of 14x and a PEG ratio of 0.74, Dell appears attractively valued relative to the broader equity market despite projecting 25% earnings per share growth for fiscal 2027.
This divergence between growth trajectory and current valuation forms the foundation of Goldman’s bullish investment thesis — identifying a high-growth enterprise priced at value stock levels.
Profitability pressure represents a legitimate consideration. GAAP gross margin contracted to 20% in Q4 FY26 from 24% in the comparable year-ago period, reflecting the increasing contribution of lower-margin AI server sales to overall revenue composition.
Regarding capital allocation, Dell increased its quarterly dividend by 20% and authorized an additional $10 billion for share repurchases. The company returned a record $7.5 billion to shareholders throughout fiscal 2026.
Dell’s Infrastructure Solutions Group posted $19.6 billion in Q4 FY26 revenue, surging 73% year-over-year.
Goldman’s updated $215 price projection represents the most recent in an ongoing series of upward target revisions directly linked to Dell’s accelerating AI server operations and its record $43 billion order backlog heading into fiscal 2027.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
