Evercore ISI revamps Dell stock price target to $650
Evercore ISI raised its price target for Dell Technologies (DELL) to $650 from $575, citing strong AI server demand and a $95 billion backlog. Dell's Q2 revenue rose 58% YoY to $47B, with adjusted EPS up 203% to $7.04. The company also increased full-year guidance, with analysts noting supply constraints and potential margin improvements.
How this was made
The 30-second read
Why it matters
The price‑target lift reflects confidence in AI demand but hinges on backlog conversion and margin improvement.
Market read
Analyst upgrade may drive short‑term buying pressure; broader AI hardware sector could benefit.
What to watch
Margin pressure from mid‑single‑digit AI server profitability and potential competitive pressure from cloud providers.
Background
Dell's Q2 fiscal 2027 results showed 58% revenue growth and a record $95 bn AI server backlog, prompting multiple analysts to raise targets.
Ticker impact
Evercore ISI raised Dell's price target to $650 after the company reported Q2 results with a $95 bn AI server backlog.
Potential short‑term rally toward $650 if backlog conversion proceeds as expected.
Target increase follows strong AI backlog data; however conversion risk and supply constraints temper upside.
Market effects
Highlights growing demand for AI‑focused server hardware, benefiting the broader enterprise‑hardware sector.
U.S. hardware manufacturers may see increased investor interest as AI spending accelerates.
Signals continued global shift toward AI infrastructure, potentially boosting related chip and component suppliers.
Counterpoint
If supply constraints persist, the backlog may not translate into near‑term revenue, limiting upside.
Key entities
- companyDell Technologies
U.S. hardware and AI server provider (ticker DELL).
- analyst_firmEvercore ISI
Equity research house that raised Dell's price target.
