DELL
Dell’s having a very loud moment
Dell just got a fresh vote of confidence from JPMorgan, and it’s not the polite, corporate kind. Analyst Joseph Cardoso kept the stock at Overweight and boosted his December 2027 price target to $635 from $565, which suggests roughly 49% upside from Monday’s close.
The reason? Dell’s AI business is starting to look less like a side hustle and more like the main event.
The AI backlog is doing the heavy lifting
Cardoso pointed to a record $60.9 billion in AI server orders in Dell’s fiscal second quarter, plus a massive $95 billion backlog. That’s not a pipeline — that’s a freight train.
A few more numbers that matter:
- AI server revenue more than doubled to $16.4 billion
- Dell now expects $74 billion in AI server revenue for fiscal 2027, up from $60 billion
- The company’s broader fiscal 2027 revenue outlook jumped to about $192 billion from $165 billion to $169 billion
Translation: customers are lining up and Dell is trying to keep up without tripping over its own shoelaces.
This wasn’t just an AI story
Sure, AI got the spotlight. But Dell’s old-school infrastructure business also did the heavy lifting. Traditional server revenue more than doubled, storage grew by double digits, and the company beat both revenue and EPS estimates by a mile.
That matters because it suggests this isn’t one of those “AI-only” stories where the market gets excited about a buzzword and then everyone forgets to read the footnotes. Dell is seeing demand across the stack — AI servers, storage, upgrades, the whole data-center refresh buffet.
What investors should watch next
JPMorgan’s takeaway was basically: Dell’s execution looks best in class, pricing is disciplined, and the backlog is fat enough to keep the story rolling into fiscal 2028.
Big picture: Dell is starting to look like one of the more credible ways to play the AI buildout — not just because demand is strong, but because the revenue is actually showing up.