Dell Technologies Inc. (Dell (DELL)) surged to a new 52-week high on Friday after Wall Street analysts raised their price targets ahead of the company's upcoming earnings report. The stock jumped 14.91% to $290.49, riding a wave of optimism about the company's AI infrastructure business.
The rally comes after Dell doubled down on its AI strategy with major product launches and expanded partnerships at Dell Technologies World 2026 earlier this month. The stock also got a boost from rival Lenovo's upbeat quarterly results, which underscored the red-hot demand for AI servers.
Analysts Raise Price Forecasts Ahead of Earnings
Several Wall Street firms turned more bullish on Dell ahead of its May 28 fiscal first-quarter 2027 earnings report, citing accelerating demand for AI infrastructure and growing enterprise adoption.
Wells Fargo analyst Aaron Rakers increased his price target to $270 from $180 and maintained a Buy-equivalent rating. Morgan Stanley, which kept an Underweight rating, raised its target to $170 from $110. The consensus among analysts is that Dell's AI business is just getting started.
Analysts expect the company to report fiscal first-quarter 2027 adjusted earnings of $2.91 per share, up from $1.55 per share a year earlier, on revenue of $35.68 billion, compared with $23.38 billion in the prior-year quarter. That's a 53% revenue jump, largely driven by AI server sales.
Dell previously disclosed fiscal 2026 AI orders totaling $64.1 billion and AI shipments worth $25.2 billion. The company exited the year with a $43 billion AI backlog and guided toward roughly $50 billion in AI revenue for fiscal 2027, implying approximately 100% annual growth. Investors are also expecting management to raise full-year earnings guidance as AI server demand continues to accelerate.
Jensen Huang and Michael Dell Highlight 'Parabolic' AI Demand
At Dell Technologies World 2026 on May 18, Dell CEO Michael Dell and Nvidia Corp. (Nvidia (NVDA)) CEO Jensen Huang took the stage to emphasize the rapid expansion in demand for enterprise AI infrastructure.
Michael Dell said global AI infrastructure spending could reach $3 trillion to $4 trillion by 2030, while token consumption could rise 3,400% during the same period. That's a staggering growth trajectory, and Dell is positioning itself to capture a big chunk of it.
Huang described AI demand as "utterly parabolic" as enterprises move from experimental AI pilots into large-scale deployment of agentic AI and inference systems. In plain English: companies are no longer just testing AI — they're building full-scale production systems, and they need the hardware to run them.
For Dell, that means a massive tailwind. The company's AI server business is already a multi-billion-dollar operation, and with a $43 billion backlog, the pipeline looks strong. The question for investors is whether Dell can maintain its momentum as competition heats up and supply chains evolve.
For now, the market is betting yes. Dell shares are trading at a new 52-week high, and with earnings just around the corner, all eyes are on whether the company can deliver on its ambitious AI revenue guidance.
