Key Highlights
- Dell Technologies shares reached a record peak of $191.38, posting approximately 49% gains year-to-date
- Goldman Sachs elevated its price objective from $195 to $215 while reaffirming its Buy recommendation
- Q4 FY26 AI-optimized server revenue surged to $8.95B, representing a 342% annual increase
- The company entered FY27 with an unprecedented AI backlog totaling $43 billion
- Several Wall Street firms upgraded targets, with Mizuho, Evercore ISI, and Bank of America all positioning between $205–$215
Shares of Dell Technologies (DELL) touched an unprecedented high of $191.38 during Wednesday trading on April 16, following Goldman Sachs’ decision to increase its price objective to $215 from the previous $195 mark while maintaining its Buy recommendation.
The technology giant’s shares have surged approximately 49% since the beginning of the year and delivered 117% returns over the trailing twelve months. Goldman’s adjustment arrived amid a broader wave of bullish revisions from major Wall Street institutions.
Goldman’s investment thesis centers on two fundamental drivers: the rapid expansion of AI server requirements and Dell’s competitive positioning in DRAM procurement. This supply chain advantage becomes increasingly critical as artificial intelligence infrastructure expansion encounters component availability challenges.
With shares trading near $187.70 at the time of the target revision, Goldman’s updated forecast suggests approximately 15% potential appreciation from prevailing price levels.
Dell delivered AI-optimized server revenue totaling $8.95 billion during the fourth quarter of fiscal 2026 — representing a remarkable 342% increase compared to the prior year period. The company’s AI backlog entering fiscal 2027 reached an unprecedented $43 billion, providing exceptional revenue visibility for upcoming quarters.
Full fiscal year 2026 revenue totaled $113.54 billion, marking a 19% annual expansion. Non-GAAP earnings per share reached $10.30.
Looking ahead to FY27, Dell provided guidance calling for total revenue between $138 billion and $142 billion, with AI-optimized server revenue projected at approximately $50 billion.
Wall Street Consensus Strengthens
Goldman represents just one voice in a chorus of bullish analyst commentary. Mizuho Securities increased its price objective to $215 from $180, highlighting robust AI server demand expected to persist throughout 2026 and into 2027.
Evercore ISI elevated its target to $205 from $160, emphasizing the sustained strength in CPU-based server demand. Bank of America Securities similarly moved to $205 while maintaining its Buy stance, following discussions with CEO Michael Dell regarding artificial intelligence infrastructure developments.
Currently, Dell commands 19 buy or strong buy recommendations across Wall Street firms, with only a single sell rating. Goldman’s target exceeds the Street consensus, signaling a more optimistic perspective on Dell’s AI market position.
Wolfe Research launched coverage with a Peerperform rating, highlighting potential concerns around memory pricing dynamics and supply chain vulnerabilities. Analyst George Rogers observed that AI server sales currently constitute 27% of Dell’s total revenue stream and are projected to expand further.
Valuation Metrics and Profitability Considerations
Trading at a forward price-to-earnings multiple of 14x and a PEG ratio of 0.74, Dell appears undervalued relative to the broader market despite projecting 25% EPS expansion in FY27.
This divergence between growth trajectory and valuation multiples forms the foundation of Goldman’s optimistic outlook — essentially a high-growth enterprise priced with a value stock discount.
Margin pressure represents a legitimate consideration. GAAP gross margin contracted to 20% in Q4 FY26 from 24% in the comparable year-ago period, reflecting the lower-margin profile of AI server sales as they consume a larger portion of total revenue.
Regarding capital allocation, Dell increased its quarterly dividend by 20% and authorized an additional $10 billion for share buybacks. The company returned a record $7.5 billion to shareholders throughout FY26.
Dell’s Infrastructure Solutions Group posted $19.6 billion in Q4 FY26 revenue, representing a 73% year-over-year surge.
Goldman’s revised $215 price objective marks the latest in a series of upward adjustments directly linked to Dell’s expanding artificial intelligence server operations and its record-setting $43 billion backlog entering fiscal 2027.
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