Dell Stock Jumped 15% Last Week. Here's Why This Top AI Stock Is Still a Buy

Dell reported strong growth in storage and raised its fiscal 2027 outlook, projecting $192B revenue and $25.50 adjusted EPS, up 150% YoY. AI-driven demand is fueling growth, with AI server revenue expected to triple. The stock has surged over 300%, trading at 24.9x forward earnings, and analysts maintain a 'Strong Buy' rating.

Dell reported Q2 FY2027 revenues of $46.97B, up 57.7% YoY, with net income of $4.13B. AI-driven demand is accelerating, with 6,500 customers deploying AI systems. Server upgrades and GPU allocations boost growth. Dell's debt is rising but remains manageable. AI systems sales reached $16.4B, nearly matching traditional server sales.

Dell Technologies (DELL) is expanding its consumer PC lineup with the Dell 14S, an affordable laptop targeting students and young adults. The company reported a 7% year-over-year increase in consumer revenues to $1.8B in Q2 2027, with total CSG revenues up 20% to $15B. Dell aims to compete with HP (HPQ) and Apple (AAPL) by broadening its product range and addressing various price points.

Evercore ISI kept Dell Technologies as a Top Pick with an Outperform rating and a $575 price target, despite removing it from its Tactical Outperform list. Dell reported July-quarter sales of $47B and EPS of $7.04, beating estimates. Revenue grew 58% YoY, driven by AI and traditional server demand. Dell raised FY27 revenue guidance to $192B and EPS to $25.50. Evercore ISI cited supply constraints as supportive of sustained growth.

Dell (NYSE:DELL) and HPE (NYSE:HPE) reported record AI-driven sales. Dell saw a 10% stock jump with $60.9B in AI-server orders and $16.4B in revenue. HPE reported $12.2B in quarterly revenue, up 34% YoY. Both face bull and bear cases regarding margins and execution. Hedge fund interest in both companies increased.

Micron reported $41.5B revenue in fiscal Q3, with DRAM and NAND accounting for 76% and 24% respectively. Dell's strong demand and $95B backlog signal robust memory and storage needs. Micron expects $50B revenue in Q4 with ~86% gross margin. Both companies highlight supply constraints and strong demand for conventional DRAM and NAND, crucial for Micron's business.