Dell stock rises as investors focus on AI server demand

Shares of Dell Technologies rose about 4% on Tuesday as investors awaited the company’s fiscal first-quarter 2027 results, due after the market close on May 28. The stock has gained roughly 136% year to date.

Analysts expect earnings per share of $2.91 for the quarter, an 88% increase from a year earlier, and revenue near $35 billion, up about 50% from the prior year. Traders are pricing in an implied post-earnings move of roughly 11.75% in either direction, according to TipRanks’ Options Tool, compared with the stock’s average absolute post-earnings move of 4.61% over the past four quarters.

Investors are focused on management comments about AI server demand, order intake and backlog conversion as indicators of enterprise spending on AI infrastructure. Market observers say those metrics will influence guidance and estimates for the full fiscal year.

Evercore reiterated a Buy rating and added Dell to its Tactical Outperform list with a $270 price target. Amit Daryanani described the setup as “constructive,” citing momentum in AI infrastructure and signs of enterprise demand. He expects modest upside to consensus revenue and earnings and noted potential strength across AI hardware, traditional servers, networking and storage. Evercore suggested Dell could raise its fiscal 2027 guidance, which currently calls for revenue between $138 billion and $142 billion and earnings per share between $12.65 and $13.15, pointing to demand from neocloud providers including CoreWeave and customer additions such as nScale.

Wells Fargo raised its price target to $270 from $180 and maintained an Overweight rating. Analyst Aaron Rakers wrote that investors need to see continued AI-driven upside and estimate revisions for the stock to keep advancing, and flagged AI order intake and server backlog as central to the case. Dell previously projected about $50 billion in AI server revenue for the full fiscal year; Wells Fargo suggested that figure could reach $60 billion to $65 billion.

Morgan Stanley kept an Underweight rating while raising its price target to $170 from $110. Erik Woodring expects a “beat and raise” quarter driven by near-term demand in AI servers and traditional hardware but warned that strong first-half demand could produce more elastic demand and weaker results in the second half. He pointed to rising memory costs affecting the PC business and argued the stock trades at a premium to peers, adding that structural margin pressure challenges current valuation levels.

TipRanks currently lists a Moderate Buy consensus based on 12 Buy ratings, four Hold ratings and one Sell rating. Heavy options activity ahead of the report reflects elevated expectations and the potential for a larger-than-normal price reaction to the earnings release.

Investors will watch for any changes to Dell’s long-term AI revenue outlook and for more granular disclosure on AI order timing and backlog conversion. The quarterly report and accompanying commentary will be reviewed for signs that demand from hyperscalers, neocloud providers and enterprise customers can sustain current levels of AI infrastructure spending.