Argus Research has more than doubled its price target on Dell Technologies (DELL) stock following the computer and IT infrastructure company’s blowout first-quarter results, which saw artificial intelligence (AI) demand more than triple its Q1 bottom line.
After Thursday’s closing bell, Dell reported record revenues of $43.8 billion for the first quarter of fiscal year 2027, up 88% year-over-year. The company also delivered record adjusted earnings per share (EPS) of $4.86 (+214% YoY) and record cash flow from operations of $4.1 billion. All of those results were ahead of analysts’ estimates.
Growing demand for artificial intelligence servers and other infrastructure largely powered those results, as well as Dell’s Street-beating guidance. The company is now forecasting $4.80 in adjusted EPS on $44 billion to $45 billion in revenues for Q2. And for the full fiscal year, Dell sees $17.90 in adjusted EPS (+74% YoY) on $165 billion to $169 billion in revenues (+47% at the midpoint).
Those results had Dell stock primed to gain 33% at Friday’s open as of this writing, and had several analysts continuing to wax bullish over the resurgent American tech firm.
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Argus Ratchets Up Target on Dell Stock
Among the most notable Wall Street analyst notes released following Dell’s report came from Argus Research’s Jim Kelleher, who reiterated his Buy rating and more than doubled his price target on Dell shares, to $460 from $200 previously. That number represents 262% growth from Dell’s starting price in 2026, and 45% upside from its Thursday close, though shares were poised to close much of that gap at Friday’s open.
“Beyond the huge hike in FY27 guidance, and particularly as the AI server and AI PC markets gain momentum, it is our opinion that Dell is poised for long-term outperformance and continued share gains given its successful execution across a diversified IT model,” Kelleher writes.
| Dell Technologies (DELL): Quick Stats | |
|---|---|
| Market cap | $206 billion |
| Dividend yield | 0.8% |
| Forward price-to-earnings (P/E) | 24.3 |
| Price/earnings-to-growth (PEG) | 1.31 |
| Source: Yahoo! Finance. Data is as of May 28, 2026. | |
Dell’s AI-optimized server revenues came to $16 billion in Q1, and it believes those sales will reach $60 billion across the full fiscal year—up from $25 billion in fiscal 2026 and $9.8 billion in fiscal 2025. Meanwhile, AI server backlog at quarter’s end was $51 billion, up from $43 billion at the end of fiscal 2026.
Indeed, Dell is in the thick of artificial intelligence. The company is currently working with Nvidia (NVDA) to produce solutions for the chipmaking leader’s Vera Rubin AI technology. And a shift to agentic AI is boosting demand for server architectures like Dell PowerEdge.
“DELL believes it is well positioned within the generative AI opportunity, given its unique position both in the enterprise IT market and in the PC space,” Kelleher writes. “The opportunity pipeline in AI is several multiples of the actual backlog, according to management, and the fastest growth is coming from neocloud, enterprise, and sovereign customers.”
On the conference call, COO Jeff Clarke said demand was better than anticipated across the board, noting increasing demand for Dell solutions from customers in enterprise, sovereign, neocloud, cloud service provider (CSP), and hyperscaler. “Responding to results that are far exceeding the five-year targets offered in October 2025—growth goals of 7%-9% in revenue and 15% or higher for non-GAAP EPS—[Dell CEO Michael Dell] noted that the rise of agentic AI has created a ‘completely new demand environment.'”
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More Analyst Thoughts on Dell Earnings
Brooks Idlet, analyst for independent research firm CFRA, reiterated his Buy rating on Dell on the company’s AI tailwind.
“We see this as evidence that Q1 was not just a pull-forward or one-off result, but an indicator of significant AI strength and DELL’s improving competitive position in AI servers (as well as PCs),” he writes.
However, Idlet also points to continued strength in the Client Solutions Group (CSG), which provides computers, software, and peripherals to end users. The division enjoyed 17% year-over-year revenue growth on the quarter, to $14.6 billion.
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“Strength was driven by Commercial Client revenue (up 18% Y/Y to $13.0 billion), though Consumer also showed resilience, with sales up 9% Y/Y to $1.6 billion,” he writes. “Amid the elevated memory pricing environment, we assume higher prices played a significant role, but the continued emergence of AI PCs is likely allowing for core [average selling price] improvements as well. The commercial PC refresh cycle, driven by enterprise upgrades to AI-capable Windows 11 devices, remains supportive of near-term CSG growth.
Truist Managing Director Matthew Niknam said that, rather than looking back and recapping Q1 results “that were nearly historic by any measure,” he wanted to focus on what’s next. There’s a lot of good there: He said DELL should continue to benefit from unprecedented demand for both AI and traditional servers, and the higher pricing that should come from tight supply.
But Niknam has a Hold rating on DELL reflecting “greater caution on valuation,” with shares trading at 21 times the company’s upgraded 2027 EPS estimates versus expected annual EPS growth of 14% between 2027 and 2030.
“DELL is in a prime position at the right time,” he writes, “though we find it tough to ignore potential risks from ever rising memory/input costs, and the subsequent impacts that future price hikes could have in cooling currently ‘white hot’ demand in upcoming periods.”
The analyst community remains bullish overall. DELL stock currently enjoys 19 Buy calls compared to just six Holds and two Sells, according to S&P Global Market Intelligence data, and their consensus estimates for average annual long-term earnings growth (over the next three to five years) sits at 26%. Meanwhile, an average price target of $395 is about 25% better than Thursday’s close of $317, but again, DELL looked ready to break through that number ahead of Friday’s market open.
At this moment, 58 equity researchers call NVDA stock a Buy, while one calls it a Sell, and two are on the sidelines calling it a Hold, according to S&P Global Market Intelligence data. Those analysts have an average 12-month price target of $278.53, implying 25% upside from here. And over the long term (the next three to five years), they expect brisk average annual earnings growth of around 40%.
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