Dell’s Improved Earnings and AI Momentum Prompt Analyst Price Target Hike

Core Insights - Dell Technologies Inc. is gaining attention in the AI sector, with Goldman Sachs raising its price target from $175 to $185 while maintaining a "Buy" rating due to improved fiscal 2026 earnings guidance and stronger AI server demand [1][2] Financial Performance - Dell raised its fiscal 2026 EPS outlook to a range of $9.82 to $10.02, driven by stronger-than-expected EBIT growth [2] - The Infrastructure Solutions Group (ISG) segment exceeded expectations and improved margins, with AI server demand increasing among Tier 2 CSPs and higher-margin neocloud and sovereign customers [2][3] AI Server Demand - AI server orders surged to $12.3 billion compared to $5.6 billion in fiscal Q2 2026, with margins also improving sequentially [3] - Dell has increased its fiscal 2026 ISG revenue outlook to the mid-to-high 30% range and raised its fiscal 2026 AI server outlook by $5 billion to $25 billion [3] CSG Segment Performance - The Client Solutions Group (CSG) revenue and margins fell short due to a 7% year-over-year decline in consumer revenue, although commercial revenue grew by 5% year-over-year [4] - Dell anticipates continued benefits from the ongoing PC refresh cycle and Windows 11 upgrades [4] Supply Chain Management - Dell has reassured investors regarding commodity inflation, stating it can recover two-thirds of cost increases within 90 days due to strong supply-chain leverage [4]