Dell AI servers generated $16.4 billion in revenue last quarter, helping drive a 330.94% year-to-date stock surge and leaving the company with a $95 billion backlog.
A $594.78 12-month price target implies about 10.66% upside from the current share price of $537.48 and comes with a Buy rating and 90% confidence.
Dell AI servers: revenue, backlog and valuation
Dell reported fiscal second-quarter revenue of $46.97 billion, up 57.75% and above the $44.44 billion estimate, while non-GAAP EPS was $7.04 versus a $4.90 consensus. AI orders reached a record $60.9 billion, and management raised full-year revenue guidance to $192 billion and non-GAAP EPS guidance to $25.50.
The company is trading at about 21x forward earnings, a notable premium to peers at roughly 14x for one competitor and 10x for another, yet analysts show no Sell ratings: 5 Strong Buy, 14 Buy and 9 Hold. Fiscal 2028 EPS consensus has risen to $24.6637 from $18.3525 sixty days earlier.
Bull-case scenarios push the thesis higher: a stated bull target is $635.68. Traditional server revenue jumped 122%, storage grew 26%, and Dell says it serves more than 6,500 AI customers. Management also expects operating expenses to be near 8% of revenue, the lowest in the company’s 42-year history.
Supply constraints and cash flow are cited as primary risks. CEO Jeff Clarke warned: “DRAM, DRAM, DRAM, followed by NAND, NAND, NAND.” Free cash flow fell 47.22% to $986 million last quarter, and shareholders’ equity was negative $1.427 billion.
The current price target sits just below the 52-week high of $595.51; the company’s 52-week low was $109.7.
