Dell Technologies reported better-than-expected financial results for its fiscal second quarter, leading to a 9% increase in its stock during extended trading.
The company has raised its full-year guidance, now expecting adjusted earnings of $25.50 per share on $192 billion in revenue for fiscal 2027, significantly higher than analysts' expectations of $18.92 earnings per share on $172.67 billion in revenue.
Analysts from Citi and Bank of America have reiterated their buy ratings on Dell, raising their price targets to $600, which suggests a 41% upside from the stock's recent close. The strong performance is attributed to the ongoing demand for AI-related hardware, with Dell projecting AI server revenue to reach $74 billion by fiscal 2027.
This positive outlook is supported by a favorable supply environment and the company's broad portfolio that includes servers, storage, and PCs. Currently, 20 out of 28 analysts covering Dell have a buy or strong buy rating, indicating strong market confidence in the company's future growth