Dell (DELL) booked $24 billion in AI orders in one quarter, carries a $51 billion backlog, and earns a BUY rating with a $561 price target. Dell's 47% FY27 revenue growth dwarfs HPE's 8-12% guide, while Super Micro (SMCI) trades cheap but faces margin instability and export-control risk. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dell Technologies didn't make the cut.
Grab the names FREE today. The best AI infrastructure trade of 2026 could be a server maker. Dell Technologies (NYSE:DELL) trades at $490.81, up 293.52% year to date on record AI server orders.
Our 24/7 Wall St. price target is $560.77, implying 14.25% upside over 12 months. We rate Dell a buy with 90% confidence. Dell's Q1 FY27 earnings on May 28, 2026 reframed the AI trade.
Revenue hit $43.84 billion, up 87.54% YoY, with non-GAAP EPS of $4.86 beating consensus by nearly 64%. AI-optimized server revenue reached $16.13 billion (+757% YoY), and management booked $24.4 billion in AI orders in a single quarter, exiting with a $51.3 billion AI backlog. The stock has climbed 19.12% in the past month and sits 2% from its 52-week high of $514.
Our bull scenario points to $585.31, or roughly 19% upside. Dell raised FY27 revenue to $165 to $169 billion and non-GAAP EPS to $17.90 at midpoint, up 74% YoY. CEO Jeff Clark said "demand continues to exceed supply" and framed customer conversations as "multi-year in nature.
Think three, four, five years." ISG operating margin expanded to 10.5%, with agentic AI layering in as a fresh tailwind for traditional servers. 19 buy or strong buy ratings against zero sells show sell-side alignment with the bull view. Our bear case lands at $422.16, a 14% drawdown. Q1 gross margin compressed to 17.8% from 21.1% YoY as low-margin AI servers dominate mix.
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