Evercore ISI Raises Dell's Price Target to $650 Amid AI Server Backlog Growth
Dell Technologies (DELL) has seen its stock price surge over the past year, driven largely by increased demand for AI servers. Evercore ISI raised its price target on Dell from $575 to $650 while maintaining an 'outperform' rating following strong fiscal second-quarter results and a significant increase in AI server backlog. Dell reported Q2 revenue of $47 billion, up 58% year-over-year, with adjusted earnings per share rising by 203%. The company's AI server orders reached $60.9 billion during the quarter, pushing its total AI backlog to a record $95 billion—up from $51.3 billion three months earlier. This growth has prompted multiple banks, including Morgan Stanley and Goldman Sachs, to raise their price targets for Dell. The Evercore analyst highlighted that while server volume is important, future appreciation may come from enterprise AI adoption and higher-margin services. The firm also noted potential upside beyond $1,000 per share.
Topics: AI Servers Backlog Dell Technologies Earnings Evercore ISI