Key Stats for Dell Stock
- Price change for Dell stock on Friday: 22%
- $DELL Share Price as of Feb. 27: $148
- 52-Week High: $168
- $DELL Stock Price Target: $161
Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free)>>>
What Happened?
Dell (DELL) stock jumped 21% on Friday after the company crushed fourth-quarter expectations and issued guidance that blew past Wall Street estimates.
- The tech giant reported adjusted earnings of $3.89 per share, beating the $3.51 consensus, while revenue hit $33.4 billion versus the $31.63 billion forecast.
- The real headline was Dell’s fiscal 2027 guidance. It expects revenue between $138 billion and $142 billion, crushing the $124.7 billion analysts were expecting.
- Even more impressive, Dell projects AI server revenue will hit $50 billion in fiscal 2027, more than double the prior year.
- Dell’s AI business is exploding. The company booked $34.1 billion in AI server orders during Q4, shipped $9.5 billion worth of infrastructure, and ended with a record $43 billion AI backlog.
CEO Jeff Clarke said Dell now serves over 4,000 AI customers across cloud providers, governments, and enterprises.
But there’s a catch.
- Memory chip makers are prioritizing high-bandwidth memory for AI chips from Nvidia, AMD, and Google, leaving less supply for PC and smartphone makers.
- This shortage has sent memory costs soaring. DRAM prices are up nearly 5.5 times over the past six months, while NAND costs have increased almost 4 times.
Dell responded by raising prices across its product lines. The company hiked server prices in mid-December and PC prices in early January.
CFO David Kennedy said these moves were designed to “offset” the pressure from rising component costs.
See analysts’ growth forecasts and price targets for Dell stock (It’s free!) >>>
What the Market Is Telling Us About Dell Stock
Wall Street generally liked what they saw, with most analysts reiterating buy ratings and raising price targets on Dell stock.
JPMorgan analyst Samik Chatterjee praised management’s confidence in raising earnings guidance despite memory costs significantly higher than those 90 days earlier.
Bank of America upgraded its price target from $135 to $155 while maintaining its buy rating. Bank of America also questioned whether price hikes might hurt demand, noting uncertainty about “the demand elasticity created by the swift and significant price actions taken by Dell.”
However, some concerns remain. UBS analyst David Voght warned that “given the severity of the memory dynamics, it will be difficult for Dell’s multiple to materially expand.”
Morgan Stanley kept its underweight rating.
The concerns aren’t unfounded. Competitor HP hit a 52-week low earlier this week after reporting that memory costs now account for 35% of its PC bill of materials, double the share a year ago.
Still, the market clearly sided with the bulls on Friday, sending Dell stock to new highs as investors bet the company can navigate the memory shortage while capitalizing on the explosive demand for AI.
Estimate a company’s fair value instantly (Free with TIKR) >>>
How Much Upside Does Dell Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
See a stock’s true value in under 60 seconds (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
