Dell Technologies Inc. (NYSE:DELL) has more room to run as artificial intelligence demand and a broader infrastructure refresh fuel growth, according to JPMorgan.
Analyst Joseph Cardoso maintained an Overweight rating on Dell. He also raised the December 2027 price forecast to $635 from $565. The new forecast implies about 49% upside from the stock’s Sept. 1 closing price of $425.
Dell AI Orders Hit Record High
Cardoso pointed to record AI server orders of $60.9 billion during Dell’s fiscal second quarter. The company ended the period with a record backlog of $95 billion.
AI server revenue more than doubled year over year to $16.4 billion. Dell now expects $74 billion in AI server revenue for fiscal 2027, up from its previous forecast of $60 billion.
JPMorgan called the company’s execution “best in class,” citing record AI orders, a $95 billion backlog, disciplined pricing and record Infrastructure Solutions Group margins.
JPMorgan said Dell’s five-quarter pipeline continued to grow. It also remained several times larger than the company’s backlog. Some customers are signing multiyear contracts to secure supply, which could support growth into fiscal 2028.
Traditional Infrastructure Adds Momentum
The analyst said Dell’s growth extends beyond AI. Traditional server revenue more than doubled as customers modernized data centers and replaced aging equipment.
About 1.2 million installed assets still use Dell’s 14th-generation technology or older systems. Cardoso expects security needs, data-center resilience and demand from AI inference workloads to drive further upgrades.
Storage revenue also rose by double digits. Demand remained strong across Dell’s PowerStore, PowerScale and ObjectScale products.
Dell reported second-quarter revenue of $46.97 billion, up 58% year over year. The result topped JPMorgan’s $45 billion estimate and the consensus forecast of about $44.8 billion.
Adjusted earnings reached $7.04 per share. That easily beat JPMorgan’s $5.06 estimate and the Street forecast of about $4.90.
Dell now expects fiscal 2027 revenue of about $192 billion, well above its previous outlook of $165 billion to $169 billion. It also forecasts adjusted earnings of roughly $25.50 per share.
JPMorgan said Dell’s operating leverage, disciplined pricing and improving storage profitability strengthen its growth outlook. The firm raised its revenue and earnings estimates following the results.
Dell Analyst Outlook And ETF Exposure
The stock carries a consensus Buy rating and an average price forecast of $526.63.
Raymond James maintained an Outperform rating Wednesday and raised its price forecast to $617. UBS kept a Neutral rating and lifted its forecast to $500. Bernstein maintained an Outperform rating and raised its forecast to $650.
Dell is held by the Tortoise AI Infrastructure ETF (NYSE:TCAI), the GraniteShares 2x Long DELL Daily ETF (NASDAQ:DLLL) and the American Customer Satisfaction ETF (BATS:ACSI).
DELL Price Action: Dell Technologies shares were up 4.40% at $443.71 at the time of publication on Wednesday, according to Benzinga Pro data.
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