Dell Technologies (DELL) just delivered another blowout quarter. And analysts are racing to slap higher price targets on the stock as it cements itself as one of the most powerful players in the AI server market.
The company reported record revenue of $29.8 billion in its latest quarter, up 19% year-over-year and topping Wall Street’s $29.2 billion estimate.
Its Infrastructure Solutions Group hit $16.8 billion in revenue, up 44% YoY, with servers and networking revenue soaring 69% to $12.9 billion.
“We've now shipped $10 billion of AI solutions in the first half of FY26, surpassing all shipments in FY25,” COO Jeff Clarke said.
Of that total, $8.2 billion came from Q2 alone. Clarke added that Dell expects to ship $20 billion in servers by year-end, which would dwarf most competitors.
Analysts pile on the upgrades
Bank of America’s Wamsi Mohan lifted his price target on Dell to $167 from $165, calling the company a “juggernaut” in AI infrastructure. He expects Dell’s earnings to grow at a 15% clip annually over the next five years, thanks to soaring AI server demand.
Raymond James analysts also nudged their target higher to $152, maintaining an Outperform rating. “Once investors absorb all the moving pieces,” analyst Simon Leopold said, Dell’s shares should recover from their post-earnings slide.
UBS joined in too, hiking its target to $155 from $145 on the back of what it called “AI order momentum.”
The Nvidia factor
One reason Dell is winnin is its deep ties with Nvidia (NVDA).
For many enterprise buyers, the only way to access Nvidia’s coveted chips is through Dell’s servers. “Nobody is better at building end-to-end systems of very large scale for the enterprise than Dell,” Nvidia CEO Jensen Huang said last year.
The partnership has already produced the Dell AI Factory, which packages Nvidia’s GPUs with Dell’s hardware and services to simplify AI adoption for businesses.
And in May, the two firms announced they’ll deliver Doudna, a U.S. Department of Energy supercomputer set to go live in 2026.
The catch
Not everything was perfect. Dell guided Q3 EPS to $2.45, below analyst estimates of $2.55, even as it forecast revenue of $27 billion, above expectations of $26.1 billion.
That earnings outlook sent the stock down 5% in after-hours trading.
But Dell’s AI engine is firing. With shipments accelerating, analyst upgrades rolling in, and Nvidia glued to its side, Dell looks more like a market-moving juggernaut than an old-line hardware company.
The stock is up nearly 5% year-to-date, trailing the S&P 500’s 10% gain, but Wall Street’s bet is clear: Dell is just getting started in the AI arms race.
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