Dell Technologies shares DELL climbed 4.3% in morning trading on Wednesday, reaching $556.85 and a new 52-week high of $562.99, as investors positioned ahead of CEO Michael Dell’s appearance at the Goldman Sachs Communacopia + Technology Conference.
The presentation comes after Dell reported record fiscal second-quarter results and raised its full-year outlook, reinforcing investor focus on its growing artificial intelligence infrastructure business.
Dell’s AI business drives record earnings
Dell reported fiscal 2027 second-quarter revenue of $46.97 billion, representing a 58% increase from a year earlier.
The company also reported $60.9 billion in AI-related orders during the quarter, alongside $16.4 billion in AI revenue and an AI backlog of $95 billion.
The strength of the AI pipeline prompted Dell to raise its full-year guidance.
The company now expects sales growth of 69% and adjusted earnings per share growth of 148%, with adjusted EPS projected at $25.50.
The results triggered a series of analyst upgrades and price-target increases from firms including Morgan Stanley, Goldman Sachs and Citigroup.
Dell’s AI server business has also expanded significantly.
Cumulative AI server revenue has approached $74 billion, roughly three times the level of the previous year.
Meanwhile, Dell’s commercial business continued to grow, with commercial revenue increasing 22% and marking its eighth consecutive quarter of growth.
Evercore raises Dell price target to $650
Evercore raised its price target for Dell to $650 from $575 and maintained the stock as a top pick despite its recent gains.
Analyst Amit Daryanani said Dell could benefit from the emergence of neocloud deployments, increasing enterprise AI adoption and ongoing supply-chain challenges.
He also pointed to potential margin expansion and the company’s capital allocation as additional factors supporting the outlook.
Daryanani said investors may be underestimating the potential impact of changes in the IT hardware market.
He described the sector as approaching a period of de-commoditization that could benefit Dell through both revenue and earnings growth.
Evercore sees potential upside to the current fiscal 2027 consensus earnings estimate of about $25.88 per share.
Its bullish scenario puts earnings above $30, while further AI server growth, higher AI adoption, storage-margin expansion, operating leverage, and additional capital returns could potentially push fiscal 2028 EPS above $40.
Daryanani also outlined a longer-term scenario in which Dell shares could reach $1,000, based on a 25-times earnings multiple and $40 of EPS.
Dell prepares for S&P 100 inclusion
Dell’s AI infrastructure expansion comes as the company continues its transition from a traditional personal-computer maker into a major supplier of computing infrastructure.
The stock has reached multiple 52-week highs as investors have responded to the company’s AI pipeline and backlog. Dell is also scheduled to join the S&P 100 on September 21.
Its inclusion could increase demand from funds and other investment vehicles that track the index, potentially adding another source of investor interest.
The company’s upcoming conference appearance gives investors another opportunity to assess the development of its AI infrastructure pipeline following its strong quarterly results.
With a substantial AI backlog, rising orders and growing server revenue, Dell remains increasingly exposed to the continued expansion of AI computing infrastructure, while analysts continue to debate how much of that growth is already reflected in its valuation.
Ahead of Michael Dell’s appearance at the Goldman conference, the stock is likely to remain a closely watched name among traders using trading platforms.
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