What Happened?
Shares of computer hardware and IT solutions company Dell (NYSE: DELL) jumped 4.9% in the morning session after Mizuho analyst Vijay Rakesh raised the price target on the stock to $650 from $600 while maintaining an Outperform rating. According to StreetInsider, the higher target follows a quarter in which Dell reported $60.9 billion of AI server orders, $16.4 billion of AI server revenue, and a $95 billion AI server backlog. Management also raised its fiscal 2027 revenue guidance to about $192 billion. Separately, Dell said in their company press release they are expanding the Dell AI Data Platform with new data orchestration and storage tools meant to turn enterprise data into trusted context for AI agents. A new semantic layer and knowledge graph are designed to give applications and agents a consistent view of company data. The company said its data processing engine runs nearly four times faster on average than central processing units alone, and up to 20 times faster on batch workloads.
After the initial pop, the shares cooled down to $571.75, up 3.5% from the previous close.
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What Is The Market Telling Us
Dell’s shares are extremely volatile and have had 44 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 30.2% on the news that it reported a blowout Q1 FY2027 earnings report. Notably, the stock had already risen approximately 150% year-to-date before the print. The outperformance was driven by the AI server business which generated $24.4 billion in new orders in a single quarter, more than double the $16.1 billion it actually shipped, leaving the company with a record $51.3 billion AI backlog. In addition, Dell posted revenue of $43.8 billion, up 88% year-over-year, crushing the Wall Street consensus of $35.4 billion by over $8 billion. Non-GAAP EPS of $4.86 came in 66% above the $2.93 estimate. The Infrastructure Solutions Group alone generated $29 billion in revenue, up 181%, with AI-optimised server revenue of $16.1 billion representing a 757% increase year-over-year. Management then raised the stakes on guidance: full-year FY2027 revenue was lifted to a midpoint of $167 billion, up from prior guidance of $140 billion, and the full-year AI server revenue target was reset to $60 billion, up 144% from the prior year. Q2 revenue guidance of $44 to $45 billion also significantly exceeded the prior Street estimate. COO Jeff Clarke said it plainly: "The AI opportunity shows no signs of slowing.".
Dell is up 347% since the beginning of the year, and at $571.75 per share, it is trading close to its 52-week high of $588.40 from September 2026. Investors who bought $1,000 worth of Dell’s shares 5 years ago would now be looking at an investment worth $5,419.
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