Dell Technologies (DELL) is heading into its September 1 earnings report with AI server demand still running ahead of supply. Evercore ISI analyst Amit Daryanani sees room for another strong quarter. He kept an Outperform rating and a $550 price target, which points to about 25% upside from Dell’s recent price near $442. Daryanani also added Dell to Evercore’s “TAP Outperform List.” He expects the company to beat Wall Street’s fiscal Q2 estimates and raise its FY27 outlook. Analysts expect Dell to report about $44.9 billion in revenue and $4.89 in earnings per share. The main driver remains AI servers, but Dell’s storage business could also add to growth. Daryanani sees strong demand continuing, with supply now limiting how fast Dell can grow its AI server business.
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High conviction CRWV bulls now have this Tradr ETFDell’s AI Backlog Gives DELL Stock More Room to Run
Dell’s AI server business remains a strong driver heading into earnings. Last quarter, the company booked $24.4 billion in AI orders and generated $16.1 billion in AI server revenue. Its AI backlog also reached a record $51.3 billion.
Daryanani said Dell’s pipeline is still several times larger than its current backlog. He sees supply, rather than demand, as the main limit on AI server growth. His checks suggest supply constraints are spreading. Memory shortages are now joined by tighter supplies of CPUs, optical parts, and hard drives. He also expects conditions to remain tight into 2027.
The 5-star analyst expects Dell to beat estimates and raise its FY27 guidance. He also expects storage revenue to rise about 10% year over year, helped by easier comparisons and higher demand from AI.
Daryanani also pointed to higher AI spending by cloud companies, including CoreWeave (CRWV) and SpaceX (SPCX), two of Dell’s largest customers. He expects this spending to support demand for Dell’s AI servers, while supply constraints could limit how quickly the company can fulfill those orders.
Daryanani is a five-star analyst on TipRanks, ranking #21 out of the 12,496 analysts tracked. He has a 71% success rate and an average return per rating of 37.70%.
What Is the Dell Stock Price Forecast?
Dell stock has a Moderate Buy consensus rating based on 14 Buy and six Hold ratings from 20 analysts. The average price target is $496.29, implying 12.26% upside from current levels. YTD, the stock has gained 254%.
