Dell shares rose 32% — and analysts say they could go higher

TLDR

• Dell shares rose nearly 32% on Friday, headed for their best day ever
• First-quarter revenue was up nearly 88% year-over-year. AI server revenue reached $16.1 billion, up 757%
• Adjusted earnings per share of $4.86 beat expectations of $2.94
• Susquehanna upgrades Dell to positive, raising price target to $700 from $138
• JPMorgan raised its price target to $500 from $280; Morgan Stanley said it “got it wrong”

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Dell Technologies posted one of the most talked-about earnings prints in recent memory on Thursday, sending its shares soaring nearly 32% on Friday — its best day since going public back in 2018.

Dell Technologies, Inc., Dell

The numbers were hard to ignore. First-quarter revenue jumped nearly 88% year over year, driven by an influx of demand for AI-related servers. AI server revenue alone reached $16.1 billion – an increase of 757% from the same quarter last year.

Adjusted EPS came in at $4.86, well above the consensus estimate of $2.94.

“They went over every line of the model — so this wasn’t just artificial intelligence, it was a brilliant implementation,” Ben Ritzes, head of technology research at Milius, put it bluntly.

Analysts scramble to review targets

The tempo forced a flurry of analyst reviews on Friday morning.

Susquehanna made the boldest move: an upgrade Dale to positive from neutral and raised the price target to $700 from $138. The company cited scaling its AI server without margin erosion, expanding inference opportunities, and better-than-expected execution across its customer solutions portfolio.

JPMorgan maintained its Overweight rating and raised its target to $500 from $280. Analyst Samik Chatterjee noted that Dell’s updated forecast for FY27 has been raised “substantially again,” with demand tracking well above expectations and pipeline visibility extending further into the year.

Dell has been updated for a full year AI is back The $60 billion forecast indicates a 144% year-over-year increase, according to JPMorgan.

Citi maintained its buy rating and raised its target to $475 from $290, calling the quarter an “exceptional beat and increase” as demand continues to outpace supply.

Morgan Stanley admits it got it wrong

Morgan Stanley, which carries an Underweight rating and a $170 price target, was blunt in its note on Friday.

“We got this wrong, and our model/PT is under review,” analysts led by Eric Woodring wrote. They called it “one of the most impressive quarters we’ve seen in our time in hardware coverage.”

Traditional servers grew almost 100% year over year. Storage posted its fastest growth in 12 quarters. PC operating margins are at record highs. Full-year guidance was raised nearly 40%.

Dell also landed a Pentagon A $9.7 billion contract was awarded this week to supply the US Army with software.

Even before Thursday’s printing, Dell shares had nearly tripled over the past year.

JPMorgan notes that a $10 billion revenue moderation by over-half has been included in the second-half outlook – but notes that constraints appear to be supply-driven rather than demand-driven, and expects further upward revisions as supply visibility improves.

Dell raised its full-year revenue forecast to reflect nearly 50% year-over-year growth.