Key Highlights
- Dell shares reached a record peak of $191.38, gaining approximately 49% since the start of the year
- Goldman Sachs upgraded its price target from $195 to $215 while reaffirming its Buy recommendation
- Q4 FY26 AI-optimized server revenue totaled $8.95B, representing a 342% increase versus the prior year
- Record AI infrastructure backlog of $43 billion entered fiscal year 2027
- Wall Street analysts including Mizuho, Evercore ISI, and BofA have established price targets between $205 and $215
Dell Technologies (DELL) shares surged to a record high of $191.38 on Wednesday, April 16, following Goldman Sachs’ decision to increase its price target from $195 to $215 while maintaining its Buy recommendation.
The stock has delivered approximately 49% gains year-to-date and posted 117% returns over the trailing twelve months. Goldman’s price target adjustment arrived amid a broader wave of analyst upgrades from leading financial institutions.
Goldman’s bullish outlook centers on two key factors: intensifying demand for AI-optimized servers and Dell’s competitive positioning in DRAM component procurement. This supply chain advantage becomes increasingly critical as infrastructure expansion projects encounter component availability constraints.
With shares trading around $187.70 at the time of the announcement, Goldman’s revised target suggests approximately 15% potential appreciation from current price levels.
Dell delivered AI-optimized server revenue of $8.95 billion during Q4 FY26, representing a 342% surge compared to the same period last year. The company entered FY27 with an unprecedented AI infrastructure backlog of $43 billion, providing substantial forward earnings clarity.
Total fiscal year 2026 revenue reached $113.54 billion, marking a 19% annual increase. Non-GAAP earnings per share came in at $10.30.
Looking ahead to FY27, Dell projects total revenue between $138 billion and $142 billion, with AI-optimized server revenue expected to reach approximately $50 billion.
Wall Street Elevates Outlook
Goldman joins a growing list of firms raising expectations. Mizuho elevated its price target from $180 to $215, highlighting robust AI server demand projected to continue through 2026 and 2027.
Evercore ISI increased its target from $160 to $205, emphasizing sustained strength in CPU-based server demand. BofA Securities similarly moved to $205 while keeping its Buy stance, following discussions with CEO Michael Dell regarding AI infrastructure developments.
Analyst sentiment remains overwhelmingly positive, with Dell currently holding 19 buy or strong buy ratings against just one sell recommendation. Goldman’s target exceeds the consensus view, reflecting confidence in Dell’s AI market positioning.
Wolfe Research began coverage with a Peerperform rating, noting potential risks related to memory component pricing and supply constraints. Analyst George Rogers observed that AI server sales currently represent 27% of Dell’s total revenue with continued expansion expected.
Valuation Metrics and Profitability Considerations
Trading at a forward price-to-earnings ratio of 14x and a PEG ratio of 0.74, Dell shares appear undervalued relative to the broader market despite management guidance calling for 25% EPS growth in FY27.
This divergence between growth trajectory and current valuation forms the foundation of Goldman’s optimistic thesis — a high-growth enterprise trading at value stock multiples.
Profitability margins warrant attention. GAAP gross margin declined to 20% in Q4 FY26 from 24% in the year-ago quarter, reflecting the growing contribution of lower-margin AI server products to total revenue mix.
Regarding capital allocation, Dell announced a 20% dividend increase and authorized an additional $10 billion for share repurchases. The company distributed a record $7.5 billion to shareholders throughout FY26.
Dell’s Infrastructure Solutions Group posted Q4 FY26 revenue of $19.6 billion, representing a 73% year-over-year increase.
Goldman’s updated $215 price objective represents the most recent in a series of upward revisions linked to Dell’s growing AI server operations and its record $43 billion infrastructure backlog heading into FY27.
