You are getting massively wealthier if you are a Dell (DELL) shareholder.
Shares of the computing giant turned AI infrastructure play soared over 30% in trading on Friday following a blowout quarter and a big-time guidance raise.
Dell said late Thursday it sees $167 billion in fiscal year 2027 revenue, including a staggering $60 billion from AI server sales alone. That’s up sharply from a prior outlook of about $140 billion and blew past analysts’ average estimate of $142.1 billion.
The numbers from the most recent quarter are almost hard to believe as well.
First quarter sales surged 88% to $43.8 billion against analyst estimates of $35.5 billion. The company booked $24.4 billion in AI orders in a single quarter, generated $16.1 billion in AI server revenue, and ended the period sitting on a backlog of $51.3 billion in AI server orders.
“This is what an AI supercycle looks like,” Evercore ISI analyst Amit Daryanani wrote in a note.
Analysis from Yahoo Finance’s AlphaSpace indicates the Street is broadly raising price targets and estimates on the computing giant. Here’s what Wall Street is saying about the quarter.
Citi’s Asiya Merchant: “Demand continues to exceed supply, supporting visibility into a sustained backlog through year-end. Our estimates undergo positive revisions. Target price moves higher to $475 ($290 prior) based on 20x [next 12 months price-to-earnings]ratio (18x prior). Maintain Buy [rating].”
Evercore ISI Amit Daryanani: “April quarter results and the revised FY27 guide point to a much stronger server cycle than previously expected, with upside driven by both AI and traditional server momentum. Dell remains supply-constrained, and better allocations could drive forward estimates even higher. Maintain Outperform and raising our target to $450 [from $270].”
JPMorgan’s Samik Chatterjee: “We do not assume that Dell’s updated outlook for ~50% year over year revenue growth is sustainable; however, the upgrades and refreshes of devices and infrastructure, along with additional capacity requirements directly or indirectly tied to AI, are driving visibility into a higher sustainable run-rate of growth over the medium term relative to the last issued guide for mid-teens growth over a longer time horizon, warranting a material raise to the valuation multiple in addition to upward revisions in earnings forecasts. We are now attributing a 25x multiple to Dell shares relative to high-teens prior with the improved visibility into a higher sustainable earnings CAGR driving the raise to our Dec-26 price target to $500 vs. $280 prior.”
Loop Capital’s Ananda Baruah: “Reiterating our Buy and raising our price target to $550 as May quarter was a historic blowout quarter as AI factory scaling is triggering operating leverage. In fact… everything looks to be accelerating… and we’d anticipate Dell benefits from the AI supercycle that we believe is upon us (AI & CPU servers… as well as storage). Dell delivered an extraordinary, unprecedented start to fiscal year 2027, soundly beating consensus estimates and achieving record figures across revenue, EPS, and cash generation.”