NEW YORK, May 22, 2026, 10:09 EDT
Dell Technologies shares climbed over 10% in early Friday trading, as more Wall Street analysts raised their price targets on the stock riding a rally fueled by AI server demand. Wells Fargo hiked its target on Dell to $270 from $180. Morgan Stanley also boosted its target, moving it up to $170 from $110, but stuck with an Underweight rating, meaning it thinks investors should have less Dell than the benchmark suggests.
Dell is due to report fiscal first-quarter results on May 28 after the stock’s big rally. Investors will be watching for signs that AI-optimized servers can deliver lasting profit, not just boost sales. Consensus at MarketBeat shows $3.00 earnings per share and $34.95 billion in revenue for the quarter.
Dell is standing out as a public-market play on AI infrastructure, separate from Nvidia. In February, the company reported it ended fiscal 2026 with over $64 billion in AI-optimized server orders, shipped $25 billion, and started fiscal 2027 with a $43 billion backlog. Dell expects about $50 billion in AI-optimized server revenue this year. Chief Operating Officer Jeff Clarke said at the time, “the AI opportunity is transforming our company.” Dell Technologies
Morgan Stanley raised its target for Dell, but the new level is well under where the stock has traded lately. The firm said it sees a solid H1 and Q2 guidance ahead of consensus. Still, it thinks most of that upside is in the price. Morgan Stanley flagged memory inflation and supply shortages as risk factors for the back half.
Analyst caution isn’t slowing down bigger targets elsewhere. Dell jumped 12.06% to $283.30 at 9:48 a.m. EDT, touching a new 52-week high. Still, the average analyst price target sat at $208.30, well below Dell’s market price, according to StockAnalysis.
Dell talked up more data-center gear, storage and agentic AI at its annual technology event this week. The company is moving further into software that handles tasks with less human work. “AI doesn’t wait,” said Arthur Lewis, president of Dell’s Infrastructure Solutions Group. Matt Kimball at Moor Insights & Strategy said Dell’s new products match the “operational reality across the full stack.” Business Wire
Dell rolled out PowerStore Elite, a new storage platform set to go global in July 2026. The company says the platform offers a 6:1 data-reduction guarantee and mixed-generation clustering, aimed at helping customers upgrade with no data migration. Omdia’s Scott Sinclair said AI growth, tougher ransomware threats and tightening flash supply are starting to shift how buyers pick storage.
Dell’s rally still faces hurdles. A 24/7 Wall St. analysis reposted by Yahoo Finance set a 12-month price target at $275.20, with a bull case up to $287, but flagged concerns on gross margin, negative shareholders’ equity, supplier concentration on AI silicon, and rivals like Hewlett Packard Enterprise and Super Micro Computer.
Dell’s rivals aren’t idle. Bernstein lifted its Dell target to $280, saying agentic AI may drive more orders for standard servers and flagged possible share moves after Super Micro’s recent issues, Investing.com reported. Morgan Stanley, on the other hand, said Dell now trades at a 30% premium to AI infrastructure peers—an all-time high under its view.
Dell remains in the spotlight for investors after its earnings report. The company said Arthur Lewis, head of Infrastructure Solutions Group, will present at Bank of America’s Global Technology Conference in San Francisco on June 2. The event will keep attention on Dell’s server, storage, and AI infrastructure push after the results next week.
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