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With a market cap of $96.8 billion, Round Rock, Texas-based Dell Technologies Inc. (DELL) operates in the information technology sector. The company provides integrated IT solutions, including infrastructure, client solutions, and cybersecurity services, catering to enterprises, public institutions, and SMBs worldwide.
Shares of the PC and server maker have significantly outperformed the broader market over the past 52 weeks. DELL has jumped 85.2% over this time, while the broader S&P 500 Index ($SPX) has rallied 36.8%. In 2024, shares of DELL are up 75.5%, compared to SPX’s 25.7% gain on a YTD basis.
Focusing more closely, Dell Technologies has also outpaced the Technology Select Sector SPDR Fund's (XLK) 34.9% returns over the past 52 weeks and a 23.2% YTD gain.
Dell shares rose 4.3% following its Q2 2025 earnings report on Aug. 29 due to better-than-expected revenue of $25 billion and adjusted earnings of $1.89 per share. This growth was largely driven by a 38% year-over-year increase in Infrastructure Solutions Group (ISG) revenues, boosted by strong demand for AI servers, with $3.1 billion in shipments and a $3.8 billion backlog. Additionally, Dell raised its fiscal 2025 guidance, projecting 10% revenue growth and improved earnings, which further bolstered investor confidence.
Moreover, the stock surged 6.4% on Oct. 30 after Super Micro Computer’s auditor, Ernst & Young, resigned due to concerns over the company’s financials. Investors shifted to Dell, viewing it as a more stable option in the AI server market.
For the current fiscal year, ending in January 2025, analysts expect DELL’s EPS to grow 12.5% year-over-year to $6.91. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 14 “Strong Buy” ratings, two “Moderate Buys,” and three “Holds.”
This configuration is more bullish than three months ago, with 12 “Strong Buy“ ratings on the stock.
On Aug. 29, Stanley analyst Erik Woodring recently lowered his price target for Dell Technologies to $136 due to delays in the company’s AI server build plans for 2024 and Fiscal Year 2025. Despite the adjustment, the analyst maintained a “Buy" rating, with the new target suggesting a just 1.3% upside potential.
The mean price target of $147.79 represents a premium of 10.1% to DELL's current levels. The Street-high price target of $186, implies a potential upside of 38.6% from the current price levels.
On the date of publication, Sohini Mondal 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.
