U.S.-based tech giant Dell Technologies (DELL) holds a Strong Buy rating from Wall Street analysts. With its focus on AI, cloud computing, and enterprise solutions, Dell has positioned itself as a key player in the AI infrastructure space. Although several Wall Street analysts have lowered their price targets for DELL stock, the overall sentiment remains bullish for the long term. In this article, we explore DELL’s stock outlook and the bullish sentiment surrounding it on Wall Street.
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Dell’s Bullish Case
For context, Dell operates through two segments: the Client Solutions Group (CSG), which focuses on PCs and accessories, and the Infrastructure Solutions Group (ISG), offering IT solutions like servers, storage, and cloud services.
The ISG segment has become one of the biggest beneficiaries of the AI boom, with its server business seeing rapid growth in recent years. Representing 45% of the company’s total revenue in FY, ISG generated nearly double the operating profit of CSG. While the CSG segment faces challenges from demand slowdown, the growth of the ISG segment and a strong margin of safety help support Dell’s value.
Looking ahead, Dell may see additional upside from recent tariff exemptions for electronics, alongside its $10 billion share repurchase program and recent dividend increase. In FY25, the company raised its annual cash dividend by 18%, bringing it to an expected $2.10 per common share.
Wall Street is Bullish on DELL Stock
Evercore’s top-rated analyst, Amit Daryanani, predicts a potential 50% upside in DELL stock from current levels. Daryanani is impressed by Dell’s focus on improving profits in FY26, despite challenges from product mix headwinds. He pointed out that it’s notable the company has kept operating costs stable compared to last year, even as sales grow. This efficiency is attributed to Dell’s use of AI tools to streamline operations.
Likewise, Goldman Sachs stated that the strong profits and expected growth in AI server sales from the ISG segment are major factors behind the positive outlook. Additionally, analysts at Goldman Sachs pointed out that Dell’s focus on high-profit products and the upcoming PC upgrade cycle in 2026 also boost the company’s prospects.
Meanwhile, Citi predicts a modest growth of around 10% in DELL stock price. Citi analysts remain cautious due to weak demand in the data center and PC sectors. They expect the consumer segment to be the most affected by inflation and slowing demand.
Is DELL Stock a Good Buy Now?
According to TipRanks, DELL stock has received a Strong Buy consensus rating, with 11 Buys and three Holds assigned in the last three months. The average Dell share price target is $128.53, suggesting a potential upside of 34% from the current level.
