Evercore ISI Lifts Dell Stock Target to $575 on AI Demand

Evercore ISI raised its price target on Dell Technologies stock (NYSE:DELL) to $575 from $550 while maintaining an Outperform rating, driven by accelerating artificial intelligence infrastructure demand and strong quarterly results, according to an Investing.com report.

The analyst upgrade follows a period of rapid expansion for the Texas-based technology hardware maker, which has capitalized heavily on enterprise data center upgrades and specialized hardware requirements for generative AI workloads.

Strong July Quarter Results Beat Expectations

Dell reported July quarter sales of $47.0 billion and earnings per share of $7.04, surpassing Wall Street expectations of $44.9 billion for revenue and $4.91 for per-share earnings, according to the report.

Total revenue grew 58% year-over-year. The growth was led by traditional server and networking divisions rising 122%, while AI-specific server revenues doubled with a 100% year-over-year increase.

AI Backlog and Segment Breakdown

Beyond servers, Dell's hardware portfolio showed broad-based expansion across its primary business units. Storage revenue increased 26% year-over-year, and client solutions grew by 20%.

AI server revenues alone reached $16.4 billion during the period, accompanied by new AI orders totaling $61 billion. These figures expanded Dell's total AI backlog to approximately $95 billion, reflecting sustained enterprise demand for accelerated computing clusters.

Upgraded Fiscal 2027 Forward Guidance

Supported by the expanding order book and current shipment momentum, Dell management raised its fiscal 2027 revenue guidance to approximately $192 billion.

The company also updated its non-GAAP earnings per share projection to approximately $25.50 for the fiscal year, providing analysts with visibility into projected margin expansion as high-value AI configurations scale in production.