Dell Technologies (DELL) stock rallied to a 52-week high on Friday as several Wall Street analysts raised their price targets on the AI server specialist ahead of its Q1 earnings on May 28.
The upward momentum drove DELL’s relative strength index (RSI) into the mid-70s, indicating overbought conditions that often precede a sharp pullback.
Still, investment firms continue to recommend sticking with Dell shares, which are already up roughly 130% versus the start of this year.
Why Are Analysts Bullish on Dell Stock
Mizuho raised its price objective on DELL stock this morning to a Street-high ($300), citing strong artificial intelligence (AI) driven demand for servers.
Meanwhile, JPMorgan analysts said easing memory cost headwinds will drive meaningful upward revisions to earnings estimates.
On Friday, Citigroup analysts also moved their year-end target on Dell Technologies to $290, citing the rise of agentic AI workload and an increase in server demand tied to AI infrastructure buildouts.
All in all, the core of their bullish thesis is quite straightforward: Dell is one of the world’s largest builders and shippers of AI-optimized server infrastructure, and the demand picture remains strong.
Fresh Products Launch to Drive DELL Shares Higher
Beyond analyst notes, DELL gave investors fresh product catalysts this week.
At its recent annual event, the company announced major expansions to its AI factory with Nvidia, including a desk-side agentic artificial intelligence system and a new enterprise data platform.
At Dell Technologies World 2026, management also unveiled PowerRack — a solution designed to give businesses on-premises AI capability with tighter data control and more predictable operating costs.
Other major announcements include the PowerStore Elite storage system, promising up to three times the performance of its predecessor, and availability.
A $43 billion AI server backlog and commitment to more than double AI-related revenue to about $50 billion in fiscal 2027 make DELL shares even more attractive to own at current levels.
What’s the Consensus Rating on Dell Technologies?
Heading into the Q1 print, Wall Street rates Dell Technologies at “Moderate Buy.”
Note that DELL stock also currently pays a dividend yield of 0.85%, which makes it even more attractive as a long-term holding in 2026.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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