Is Dell Stock the Biggest AI Winner on Wall Street Right Now?

TLDR

• DELL stock surged over 32% on Friday after reporting Q1 FY2027 revenue of $43.8 billion, up 88% year-over-year
• EPS came in at $4.86, crushing the $2.96 analyst estimate by $1.90
• AI-optimized server revenue jumped 757% to $16.1 billion, with $24.4 billion in AI orders in a single quarter
• Dell raised full-year FY2027 revenue guidance to $165–$169 billion, up from a prior outlook of ~$140 billion
• Multiple Wall Street firms raised price targets sharply, with JPMorgan going to $500 and Loop Capital as high as $550

Dell Technologies (DELL) stock jumped over 32% on Friday, closing at $420.91, after the company posted first quarter fiscal 2027 results that blew past Wall Street expectations on nearly every line.

Dell Technologies Inc., DELL

Revenue hit $43.8 billion, up 88% year-over-year, against analyst estimates of $35.5 billion. EPS came in at $4.86 versus a $2.96 consensus — a beat of $1.90 per share.

The AI server numbers were the real headline. Dell reported $16.1 billion in AI-optimized server revenue, a 757% jump year-over-year. The company booked $24.4 billion in AI orders during the quarter and ended the period with a backlog of $51.3 billion in AI server orders.

Management raised full-year FY2027 revenue guidance to a range of $165–$169 billion, including $60 billion from AI server sales alone. The prior outlook was around $140 billion. Analysts had been expecting roughly $142.1 billion.

Wall Street Raises Targets Across the Board

The analyst community responded quickly. Citi lifted its price target to $475 from $290, keeping a Buy rating, and noted that “demand continues to exceed supply, supporting visibility into a sustained backlog through year-end.”

JPMorgan moved its price target from $280 to $500, citing improved visibility into a higher sustainable earnings growth rate. The firm now applies a 25x multiple to Dell, up from high-teens previously.

Loop Capital went furthest, raising its target to $550 and calling the quarter “a historic blowout” driven by AI factory scaling and operating leverage.

Wells Fargo raised its target to $505 from $270, and Melius Research set a $565 target. The average analyst target now sits at $421, according to MarketBeat data, with 20 Buy ratings, one Strong Buy, eight Hold ratings, and one Sell.

AI Orders and Backlog Point to Continued Momentum

Dell’s $51.3 billion AI server backlog is the clearest indicator that demand is not slowing. The company acknowledged it remains supply-constrained, which means revenue could be even higher if supply keeps up with orders.

Crake Asset Management increased its Dell stake by 8.2% in Q4, bringing holdings to 835,348 shares worth approximately $105.2 million. Institutional investors now own 76.37% of the stock.

DELL opened Friday at $420.96. The stock’s 52-week low is $106.38, meaning the stock has roughly quadrupled from its lows. The 50-day moving average stood at $216.82 before Friday’s move.

For Q2 FY2027, Dell guided for EPS of $4.80, and the company’s full-year EPS outlook is set at $17.90.

The post Is Dell Stock the Biggest AI Winner on Wall Street Right Now? appeared first on CoinCentral.