Dell raises stock target and shows strong AI growth: What investors need to know

Mizuho raised Dell’s stock price target to $170 from $160 on Wednesday, keeping its Outperform rating after Dell’s Analyst Day in New York City. Dell’s stock is currently $150.87, close to its 52-week high of $154.70, and it gained 110% over the past six months.

Mizuho praised Dell’s strong AI momentum in Enterprise and Sovereign AI segments. They expect high demand for the next 12-18 months, as per Investing.com report. Dell made over $101 billion in revenue over the last 12 months, maintaining a strong position in Technology Hardware, Storage & Peripherals.

Dell financial targets 2026-2030

Dell raised its financial targets for fiscal 2026-2030, projecting:

• 7-9% revenue CAGR (compound annual growth rate)
  
  
• 15% year-over-year earnings per share growth
  
  
• Around 80% free cash flow return

Dell’s Infrastructure Solutions Group (ISG) is expected to grow 11-14% CAGR, with AI Servers leading 20-25% CAGR. Mizuho said this ISG forecast might be conservative, since Dell leads in Enterprise AI and around 85% of customers will deploy generative AI on-premises in two years.


Dell’s Client Solutions Group (CSG) revenue is expected to grow 2-3% yearly, focusing on premium Commercial PC market share gains, as stated by the report by Investing.com. Dell’s long-term ISG operating margins are forecasted at 10-14%, versus current quarter estimates of ~11.5%.

Dell’s P/E ratio is 21.22, and InvestingPro rates its overall financial health as GOOD. Dell significantly raised long-term financial targets, with annual revenue growth projection up to 7-9% from the previous 3-4%. Dell plans to nearly double annual non-GAAP diluted earnings per share growth to 15% or more.

Dell stock ratings and AI growth

The company will grow its quarterly dividend by at least 10% annually through fiscal 2030. Dell completed a $4.5 billion senior notes offering across four tranches, with notes due between 2029 and 2036. Melius Research raised Dell’s price target to $200, highlighting potential EPS growth through enterprise AI adoption.

Raymond James kept its Outperform rating with a $152 price target after Dell reported AI activity exceeding forecasts at a securities analyst meeting, as mentioned in the report by Investing.com. UBS maintained a Buy rating with a $155 price target, expecting more insights into AI server revenue and profitability at Dell’s upcoming Analyst Day.

FAQs

Q1. What is Dell’s new stock price target?

Mizuho raised Dell’s stock price target to $170, while Melius Research set it at $200.

Q2. How is Dell growing in AI and revenue?

Dell is expanding in Enterprise AI, with AI Servers growing 20-25% CAGR and overall revenue expected to grow 7-9% annually.