Goldman Sachs Reiterates Buy Rating on Dell Stock with $500 Price Target

Key Stats for Dell Stock

• Price change for Dell stock in the last 5 days: 33%
• $DELL Stock Price as of Jun. 3: $421
• 52-Week High: $469
• $DELL Stock Price Target: $484

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What Happened?

Goldman Sachs just gave Dell (DELL) stock another vote of confidence. Analyst Katherine Murphy reiterated her Buy rating and set a $500 price target. That implies roughly 15% more upside from where Dell stock right now.

Murphy laid out three reasons for the call.

1. First, companies are spending heavily on IT hardware to support AI projects.
2. Second, Dell’s strong fiscal 2027 outlook is held back by supply, not demand. That kind of setup usually leads to stronger profit margins.
3. Third, Dell’s operating margins are holding up better than peers, thanks to its scale and supply chain.

The note comes right after a blowout earnings report.

• Last week, Dell said it sees $167 billion in fiscal 2027 revenue, including $60 billion from AI servers. That blew past Wall Street’s $142 billion estimate.
• First quarter sales jumped 88% to $43.8 billion, and the company booked $24.4 billion in AI orders in a single quarter.
• Backlog now sits at a record $51.3 billion.

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What the Market Is Telling Us About Dell Stock

Investors are paying attention. Dell stock has soared more than 33% since the May 28 earnings release and is up about 230% year to date.

It hit a 52-week high of $469.47 this week before pulling back to current levels around $435.

The bullish case is hard to argue with. AI orders, backlog, and forward guidance all point the same way.

• Management raised its full-year revenue outlook by roughly $27 billion in a single quarter.
• Cash flow hit a record $4.1 billion, and
• Dell returned $2.1 billion to shareholders through buybacks and dividends.

There are reasons to stay alert, too.

• Management has flagged memory chips (DRAM and NAND) as the main supply bottleneck.
• AI server gross margins are lower than the rest of the business, which dragged the overall gross margin rate down to 18.1%.
• The stock also trades at a forward P/E near 32, which is rich after such a big run. Competitors like HPE, Apple, and Super Micro Computer have lower P/Es than Dell.

Still, with Goldman backing the call and several other firms raising targets, Dell stock looks like one of the cleanest AI infrastructure plays right now.

The recent pullback from highs reads more like profit-taking than a change in the story.

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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!