Dell’s Q1 earnings beat estimates, driven by $24.4 billion in AI orders and $16.1 billion in AI server revenue.
Bernstein raised its price target on Dell Technologies (DELL) to $500 from $280 after the company reported fiscal Q1 adjusted EPS of $4.86, surpassing the $2.96 consensus. Revenue reached $43.8 billion, above the $35.77 billion estimate, fueled by strong AI demand.
Dell booked $24.4 billion in AI orders and recognized $16.1 billion in AI server revenue, prompting the company to raise its FY27 AI server revenue forecast to $60 billion. Analysts highlighted robust PC and infrastructure growth, offsetting margin pressures from higher memory costs.
Argus also lifted its price target to $460 from $200, citing Dell’s outperformance in both top- and bottom-line metrics. The company unveiled a new $699 laptop, undercutting Apple’s MacBook Neo, as part of its push into AI-driven hardware.