Key Stats for Dell Stock
- Price change for Dell stock in the last 6 months: 312%
- $DELL Stock Price as of Aug. 12: $485
- 52-Week High: $486
- $DELL Stock Price Target: $501
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What Happened?
Goldman Sachs just gave Dell (DELL) stock a vote of confidence. The bank raised its price target on Dell stock to $510 from $500, keeping its Buy rating in place. That new target points to 14% upside from where the stock closed on Tuesday.
Analyst Katherine Murphy says agentic AI is the reason. As companies roll out AI agents across their operations, they need more storage to feed those systems with data. Murphy expects this trend to boost demand for Dell’s high-performance storage platforms going forward.
The numbers back up the optimism. Dell stock has crushed the market lately, outperforming Goldman’s hardware coverage group. For comparison, the broader IT hardware group returned 136% in that stretch, while the S&P 500 managed just 18%.
Dell’s own results explain why.
- In its fiscal Q1, revenue jumped 88% to $43.8 billion, and earnings per share more than tripled to $4.86.
- The company’s Infrastructure Solutions Group, which includes AI servers, led the charge.
- Dell booked $24.4 billion in AI orders during the quarter and ended with a record $51.3 billion in AI server backlog, meaning demand is running well ahead of what the company can actually ship.
Goldman expects that momentum to continue. The firm projects Dell’s fiscal Q2 revenue at $44.8 billion, with the Infrastructure Solutions Group growing 75% year-over-year and the Client Solutions Group, which covers PCs, growing 20%. Goldman also sees non-GAAP earnings per share of $4.96, which would come in above the high end of Dell’s own guidance.
Looking further out, Goldman raised its fiscal 2027 through 2029 earnings estimates by an average of 4%, citing stronger-than-expected demand for traditional servers alongside AI servers.
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What the Market Is Telling Us About Dell Stock
The market is reading this as a sign that Dell’s AI story has legs beyond just GPUs. Storage, networking and traditional servers are all seeing a lift from the same wave of AI adoption, and that broader demand is what’s giving analysts confidence to keep raising targets.
Goldman did flag some risks worth watching. A weaker PC market, slower enterprise IT spending, pricing pressure from rivals, rising input costs, and competition from lower-cost “white box” server makers could all weigh on the stock.
Still, not everyone agrees on how much further Dell stock can run. GF Securities recently downgraded the stock to Hold on valuation concerns, even as Evercore ISI stuck with its Outperform rating, pointing to strong AI server demand.
Dell also just unveiled its new PowerEdge XE8812 server built on Nvidia’s Vera Rubin architecture, adding another product to its AI lineup.
For now, Goldman’s updated target suggests the firm sees more room for Dell stock to climb, even after its big run this year.
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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!
