Key Highlights
- Dell (DELL) stock reached a record peak of $191.38, climbing approximately 49% since the start of the year
- Goldman Sachs upgraded its price target from $195 to $215 while reaffirming its Buy recommendation
- AI-optimized server sales reached $8.95B in fiscal Q4 2026, representing a 342% increase from the prior year
- Company entered FY27 with an unprecedented AI order backlog of $43 billion
- Several Wall Street firms have elevated their targets, including Mizuho, Evercore ISI, and BofA with ranges of $205–$215
Dell Technologies (DELL) stock achieved a new all-time peak of $191.38 on Wednesday, April 16, following Goldman Sachs’ decision to increase its price objective to $215 from the previous $195, while maintaining its Buy recommendation.
The shares have surged approximately 49% year-to-date and delivered an impressive 117% return over the trailing twelve months. Goldman’s adjustment coincided with a broader trend of bullish revisions from Wall Street analysts.
Goldman’s optimistic stance is anchored in two key factors: rapidly expanding demand for AI servers and Dell’s competitive advantage in securing DRAM component supplies. This supply chain positioning becomes increasingly critical as artificial intelligence infrastructure expansion encounters component availability constraints.
With shares trading around $187.70 at the time of the target revision, Goldman’s $215 projection suggests approximately 15% potential appreciation from present levels.
Dell delivered AI-optimized server revenue of $8.95 billion during Q4 of fiscal year 2026 — representing a remarkable 342% surge compared to the same period last year. The company’s AI-related order backlog entering FY27 reached an unprecedented $43 billion, providing exceptional forward revenue visibility.
Total fiscal 2026 revenue reached $113.54 billion, reflecting 19% growth year-over-year. Non-GAAP earnings per share totaled $10.30.
For fiscal 2027, Dell provided guidance projecting total revenue between $138 billion and $142 billion, with AI-optimized server sales expected to reach approximately $50 billion.
Wall Street Consensus Builds
Goldman isn’t operating in isolation. Mizuho elevated its target to $215 from $180, emphasizing robust AI server demand expected to persist throughout 2026 and 2027.
Evercore ISI increased its objective to $205 from $160, highlighting the sustained strength in CPU-based server demand. BofA Securities similarly raised its target to $205 while retaining its Buy stance, following discussions with CEO Michael Dell regarding AI infrastructure strategies.
Currently, Dell commands 19 buy or strong buy recommendations across Wall Street, with only a single sell rating. Goldman’s $215 target exceeds the analyst consensus, demonstrating a notably bullish perspective on Dell’s AI market position.
Wolfe Research launched coverage with a Peerperform rating, acknowledging potential risks related to memory component pricing and supply availability. Analyst George Rogers observed that AI server revenue currently represents 27% of Dell’s total business and is projected to expand further.
Valuation Metrics and Profitability Analysis
Trading at a forward price-to-earnings ratio of 14x and a PEG ratio of 0.74, Dell appears undervalued relative to broader market benchmarks, particularly given its guidance for 25% earnings per share growth in FY27.
This disconnect between growth trajectory and current valuation forms the foundation of Goldman’s bullish investment thesis — essentially a high-growth enterprise trading at value stock multiples.
Profitability margins warrant attention. GAAP gross margin contracted to 20% in Q4 FY26 from 24% in the comparable year-ago quarter, primarily as the lower-margin AI server segment expands its proportion of total revenue.
Regarding capital allocation, Dell increased its dividend payout by 20% and authorized an additional $10 billion for share buybacks. The company distributed a record $7.5 billion to shareholders throughout FY26.
Dell’s Infrastructure Solutions Group posted $19.6 billion in Q4 FY26 revenue, representing 73% year-over-year growth.
Goldman’s updated $215 price objective represents the most recent in a series of upward revisions directly linked to Dell’s accelerating AI server operations and its record-breaking $43 billion backlog as the company enters FY27.
