Key Takeaways
- Dell Technologies shares reached a record peak of $191.38, surging approximately 49% in 2025
- Goldman Sachs elevated its price objective from $195 to $215 while reaffirming its Buy recommendation
- AI-focused server sales reached $8.95B in Q4 fiscal 2026, representing a 342% annual increase
- The company’s AI order backlog entering fiscal 2027 stands at an unprecedented $43 billion
- Several Wall Street firms have increased targets, with Mizuho, Evercore ISI, and Bank of America setting objectives between $205 and $215
Dell Technologies (DELL) shares surged to a record high of $191.38 on Wednesday, April 16, following Goldman Sachs’ decision to increase its price objective to $215 from $195 while maintaining its Buy recommendation.
Shares have advanced approximately 49% since the beginning of 2025 and have delivered 117% returns over the trailing twelve months. Goldman’s adjustment arrived amid a broader trend of analyst upgrades from major financial institutions.
Goldman’s investment thesis centers on two fundamental drivers: expanding demand for AI-enabled servers and Dell’s competitive positioning in DRAM procurement. This supply chain advantage becomes increasingly critical as artificial intelligence infrastructure expansion confronts component availability constraints.
Trading around $187.70 at the time of the upgrade, Goldman’s revised target suggests approximately 15% potential appreciation from present levels.
Dell delivered AI-optimized server sales of $8.95 billion in the fourth quarter of fiscal 2026—representing a 342% increase compared to the prior year period. The company’s AI-related backlog entering fiscal 2027 reached an unprecedented $43 billion, providing exceptional forward revenue visibility.
Total fiscal 2026 revenue reached $113.54 billion, reflecting 19% annual growth. Non-GAAP earnings per share totaled $10.30.
For fiscal 2027, management issued guidance calling for total revenue between $138 billion and $142 billion, with AI-optimized server revenue projected at approximately $50 billion.
Wall Street Consensus Shifts Higher
Goldman represents just one voice in a growing chorus of bullish analysts. Mizuho Securities increased its target to $215 from $180, highlighting robust AI server demand expected to persist throughout 2026 and 2027.
Evercore ISI elevated its objective to $205 from $160, emphasizing the sustained strength of CPU-based server demand. Bank of America Securities similarly moved to $205 while maintaining its Buy stance, following direct discussions with CEO Michael Dell regarding AI infrastructure buildout.
Among Wall Street analysts covering Dell, the company now commands 19 buy or strong buy recommendations against just one sell rating. Goldman’s target exceeds the Street consensus, reflecting a distinctive perspective on Dell’s AI market positioning.
Wolfe Research launched coverage with a Peerperform rating, highlighting potential risks around memory pricing and supply constraints. Analyst George Rogers observed that AI server sales currently represent 27% of Dell’s overall revenue mix and are projected to expand further.
Valuation Metrics and Profitability Considerations
Trading at a forward price-to-earnings multiple of 14x and a PEG ratio of 0.74, Dell shares trade at a discount relative to broader market indices despite management’s guidance for 25% EPS expansion in fiscal 2027.
This disconnect between growth trajectory and valuation multiples forms the foundation of Goldman’s bullish perspective—a high-growth enterprise valued like a mature business.
Profitability pressure remains a legitimate consideration. GAAP gross margin contracted to 20% in Q4 fiscal 2026 from 24% in the comparable prior-year period, reflecting the impact of lower-margin AI server products comprising an increasing portion of total revenue.
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 fiscal 2026 revenue, marking a 73% year-over-year increase.
Goldman’s updated $215 price objective represents the most recent in a series of upward adjustments directly linked to Dell’s expanding AI server operations and its record $43 billion backlog entering fiscal 2027.
