Dell shares surged to a new all-time high Friday, jumping more than 16% to $294 and leading the S&P 500. The stock is now up roughly 125% year to date, driven by investor demand for companies tied to AI servers and data center infrastructure.
Multiple Wall Street analysts raised price targets ahead of the company's fiscal first quarter earnings report on May 28. Wells Fargo, Evercore ISI, JPMorgan, Citigroup, and Bank of America all lifted their targets, citing stronger AI server revenue potential and improving enterprise mix.
Wells Fargo analyst Aaron Rakers raised his price target to $270 from $180, saying Dell's AI server revenue could reach $65 billion this fiscal year, above management's $50 billion target.
Even Morgan Stanley, the most cautious major voice on the stock, raised its price target to $170 from $110 while maintaining an Underweight rating.
Consensus estimates call for adjusted earnings of $3.00 per share, up 93.6% year over year, and revenue of $35.46 billion, up 51.7%, with analysts looking for upside from AI server demand.
The rally extends a broader move that has accelerated since February, helped by Dell's growing AI backlog and investor rotation into hardware names tied to data center spending.
The stock also got a boost weeks ago when President Donald Trump urged Americans to buy Dell computers during a White House event.