Bank of America Securities increased its price target on Dell Technologies to $505 from $500 on Thursday, maintaining a buy rating as the bank anticipates sustained demand for AI servers. The firm also raised its full-year fiscal 2027 revenue guidance for Dell to a range of $171 billion to $175 billion, up from prior estimates.
The bank projects AI server revenue for Dell at $65 billion in fiscal 2027, compared with Dell’s current guidance of $60 billion. Dell’s stock closed at $456.24 on Aug. 28, down 3.39% or $16.02, following a 278% gain over the past year. Revenue growth over the last 12 months reached 39%, according to the report.
BofA noted that Dell’s upside potential remains constrained primarily by supply limitations for SSDs, memory components, and datacenter readiness rather than demand. The bank also set third-quarter fiscal 2027 revenue guidance for Dell at a range of $42 billion to $43 billion, with earnings per share expected between $4.40 and $4.60.
Evercore ISI separately raised its price target on Dell to $550, reiterating an outperform rating. The firm cited strong AI server demand and expectations that Dell will exceed revenue and profit estimates. Citi also projected solid results for hardware manufacturers, driven by AI infrastructure demand and higher CPU utilization. Lenovo’s recent strong quarterly performance contributed to positive sentiment around Dell’s stock.
Dell is scheduled to report second-quarter fiscal 2027 results after market close on Sept. 1, 2026.
