Quick Summary
- Dell stock reached a record peak of $191.38, surging approximately 49% in 2025
- Goldman Sachs elevated its price objective from $195 to $215 while reaffirming Buy recommendation
- Q4 FY26 AI-optimized server sales reached $8.95B, representing a 342% annual increase
- The company entered FY27 with an unprecedented $43 billion AI backlog
- Several major analysts including Mizuho, Evercore ISI, and BofA have lifted targets to the $205–$215 range
Dell Technologies (DELL) shares achieved a record high of $191.38 during Wednesday’s trading session on April 16, following Goldman Sachs’ decision to increase its price objective to $215 from the previous $195 while maintaining a Buy recommendation.
The technology company’s shares have gained approximately 49% since the beginning of the year and have delivered a remarkable 117% return over the trailing twelve months. Goldman’s upgrade arrived as part of a broader wave of bullish analyst revisions from leading financial institutions.
Goldman’s optimistic stance hinges on two fundamental drivers: surging demand for AI-powered server infrastructure and Dell’s competitive positioning in securing critical DRAM components. This supply chain advantage becomes increasingly crucial as artificial intelligence infrastructure expansion encounters component availability constraints.
With shares trading around $187.70 at the time of the target revision, Goldman’s updated price objective suggests approximately 15% potential appreciation from present levels.
Dell posted AI-optimized server sales of $8.95 billion during its fourth fiscal quarter of 2026 — representing a staggering 342% increase compared to the prior year. The company’s AI order backlog entering fiscal 2027 reached an unprecedented $43 billion, providing exceptional forward revenue visibility.
Total fiscal 2026 revenue reached $113.54 billion, marking a 19% annual growth rate. Adjusted earnings per share totaled $10.30.
Looking ahead to fiscal 2027, Dell projected total revenue ranging from $138 billion to $142 billion, with AI-optimized server revenue expected to reach approximately $50 billion.
Wall Street Consensus Strengthens
Goldman represents just one voice in a growing chorus of bullish analysts. Mizuho Securities increased its price target to $215 from $180, highlighting robust AI server demand expected to persist through 2026 and 2027.
Evercore ISI raised its target to $205 from $160, emphasizing the sustained strength in CPU-based server demand. BofA Securities similarly adjusted upward to $205 while retaining its Buy stance, following discussions with CEO Michael Dell regarding AI infrastructure trends.
The Street now shows 19 buy or strong buy ratings on Dell versus just a single sell recommendation. Goldman’s target exceeds the consensus forecast, underscoring a particularly bullish perspective on Dell’s AI opportunity.
Wolfe Research launched coverage with a Peerperform rating, highlighting potential risks related to memory component pricing and supply constraints. Analyst George Rogers observed that AI server revenue currently represents 27% of Dell’s total sales and is projected to expand further.
Valuation Metrics and Profitability Considerations
Trading at a forward price-to-earnings ratio of 14x and a PEG ratio of 0.74, Dell appears undervalued relative to the broader market despite projecting 25% earnings growth for fiscal 2027.
This disconnect between growth expectations and current valuation forms the foundation of Goldman’s bullish investment thesis — essentially a high-growth enterprise trading at value stock multiples.
Profitability pressure represents a legitimate consideration. GAAP gross margin contracted to 20% in Q4 FY26 from 24% in the comparable year-ago period, reflecting the impact of lower-margin AI server products comprising a larger revenue portion.
Regarding capital allocation, Dell increased its quarterly dividend by 20% and authorized an additional $10 billion for share repurchases. The technology giant returned a record $7.5 billion to shareholders throughout fiscal 2026.
Dell’s Infrastructure Solutions Group posted $19.6 billion in fourth-quarter fiscal 2026 revenue, surging 73% year-over-year.
Goldman’s updated $215 price target represents the most recent in a sequence of upward analyst revisions directly linked to Dell’s expanding AI server operations and its record $43 billion order backlog entering fiscal 2027.
