Dell Stock Buy or Sell Outlook in 2026: Analysts Favor Buying on AI Server Momentum

Dell Technologies shares surged nearly 40% after its Q1 FY2027 results on May 29, when revenue rose to $43.8B and diluted EPS increased 214% to $4.86; operating cash flow was $4.1B and $2.1B was returned to shareholders. ISG revenue hit a record $29B; CSG $14.6B. Q2 revenue guidance is $44B–$45B, with non-GAAP EPS $4.80±$0.10. Barclays raised its target to $550; Morgan Stanley upgraded to Equal Weight and set $448.

The article says investors increasingly reward earnings only when companies explicitly link results to AI demand. It cites ASML and ServiceNow, which beat revenue estimates and raised guidance but fell. It also notes Snowflake, Dell, and HPE rose 19%–33% after crediting AI. The IT sector is now about 37% of S&P 500 market cap, per S&P Dow Jones Indices.

Dell’s stock rose 47% after results highlighted strength beyond AI. The company reported traditional server and networking revenue up 92% year over year, storage revenue up 8%, and Client Solutions Group revenue up 17%. Dell generated $3.16 billion in free cash flow and returned $2.1 billion to shareholders. For Q2, it expects revenue of $44–$45 billion; fiscal 2027 revenue $167 billion and AI server revenue about $60 billion.

Wistron CTO David Shen said AI growth is pushing server makers beyond hardware assembly into “super integration” covering computing, networking, storage, cooling, power distribution and advanced semiconductor packaging. He said AI clusters require tighter supply-chain coordination to optimize performance, thermal management and power efficiency. Wistron reported revenue rising from NT$1.049T (2024) to NT$2.186T last year, with AI infrastructure at 46% of revenue in 2024, 71% last year and 79% in

Thirteen Republican state attorneys general, led by Idaho AG Raúl Labrador, backed a U.S. Department of Labor proposed rule to raise minimum “prevailing wages” for H-1B workers. They argue higher wage floors would reduce incentives to hire lower-cost foreign labor, citing alleged cases including Southern California Edison where labor costs fell up to 40%. They also questioned the wage-setting method’s legal basis and urged scrutiny of H-1B use in tech and universities.

Hewlett Packard Enterprise shares jumped nearly 20% Tuesday after quarterly results beat estimates on strong AI data-center demand, with the stock up more than doubled this year and nearing a record close. The article links similar rallies in Dell, Intel and Cisco to late-1990s dotcom-era hardware booms, citing Dell’s AI server sales surge and Cisco’s higher AI order forecast.