Citi Raises Price Target for Dell Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: seekingalpha
Dell Technologies Inc shares rose 5.03% as the stock crossed above its 5-day SMA, reflecting positive market sentiment.
Citi analyst Asiya Merchant raised Dell's price target from $235 to $290, citing optimism about sustained AI and server growth, alongside improvements in storage execution and steady PC progress. This upgrade has contributed to a positive stock reaction, with Dell's shares rising 1.9% in premarket trading, indicating market confidence in the company's future performance ahead of its upcoming earnings report on May 28.
The increase in price target suggests that analysts are optimistic about Dell's growth potential, particularly in the AI sector, which could lead to further stock price increases as the market anticipates strong earnings results.
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Analyst Views on DELL
Wall Street analysts forecast DELL stock price to fall
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 420.910
Low
113.00
Averages
164.85
High
180.00
Current: 420.910
Low
113.00
Averages
164.85
High
180.00
About DELL
Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its ISG segment enables the Company’s customer’s digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi cloud environments. Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. Its CSG segment offers branded personal computers (PCs) including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Stock Performance: The company's stock has surged over 260% in the past 12 months, with most gains occurring since February, reflecting market recognition of its AI business, although the current stock price appears technically overbought.
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- Significant Revenue Growth: Dell Technologies reported an impressive 88% revenue growth in Q1, highlighting its strong performance in the artificial intelligence sector and solidifying its position as an AI solutions provider.
- Strong Stock Performance: The company's stock has surged over 260% in the past 12 months, with most gains occurring since February, reflecting market recognition of its AI business, although the current stock price appears technically overbought.
- AI Business Explosion: Sales of Dell's AI-optimized servers skyrocketed by 757% year-over-year to $16.1 billion, making it the company's largest business segment, demonstrating its penetration in a competitive AI market.
- Future Profit Expectations: Dell anticipates a non-GAAP profit of $17.90 per share for the current fiscal year, driven by a projected 144% revenue growth from AI-optimized servers, with analysts generally viewing Dell stock as attractive, setting a price target of $440.11.
See More
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- Optimistic Growth Outlook: The company raised its FY26 revenue growth forecast to 29% to 33%, significantly higher than the previous 17% to 22%, reflecting a surge in AI demand.
- Robust Cloud & AI Revenue: HPE's Cloud & AI revenue totaled $7.71 billion, with server revenue at $5.45 billion, both exceeding analyst expectations, indicating a rapid growth in infrastructure demand.
- Extremely Bullish Market Sentiment: HPE's stock surged 38% in after-hours trading and has risen 96% year-to-date, with investors expressing extremely bullish sentiment, particularly driven by the demand for AI technologies.
See More
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- AI Chip Market Leadership: Nvidia has driven over $215 billion in record revenue through its dominance in the data center market with GPUs, resulting in a 450% stock price increase over the past three years, showcasing its strong growth potential in the AI sector.
- New Processor Launch: At the Computex conference in Taipei, Nvidia announced the N1X processor as part of its RTX Spark superchip, which is expected to significantly enhance performance and efficiency for Windows PCs, particularly in running AI agents.
- Entering the CPU Market: This launch marks a significant advancement for Nvidia in the CPU market, as it plans to introduce a standalone Vera Rubin platform, aiming to capture a larger share of the $200 billion CPU market and enhance its competitive edge.
- AI Agent Growth Driver: With AI agents poised to become a new growth driver, Nvidia's move not only mitigates risks but also opens up new revenue growth opportunities, further solidifying its leadership position in the PC market.
See More
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- AI Revolution Leader: Nvidia has driven over $215 billion in record revenue through its strong performance in the data center market with its GPUs, showcasing its leadership in AI and robust market demand growth.
- New Processor Announcement: At the Computex conference in Taipei, CEO Jensen Huang announced the launch of the N1X processor as part of its RTX Spark superchip, aimed at enhancing performance and efficiency for Windows PCs, marking Nvidia's first entry into the CPU market.
- Market Expansion Strategy: The new processor will be launched in collaboration with Microsoft, Dell, and others, targeting professionals and gamers, and is expected to solidify Nvidia's dominance in the $200 billion CPU market, further enhancing its competitive edge.
- AI Agent Growth Driver: As AI agents emerge as the next growth driver, Nvidia's CPUs will provide critical support for these agents, expanding its revenue growth opportunities, thereby reducing investment risks and increasing stock attractiveness.
See More
Hewlett Packard Enterprise Reports Record Q2 Results, Accelerates Financial Goals
- Significant Revenue Growth: HPE reported a record revenue of $10.68 billion for Q2, marking a 40% year-over-year increase and surpassing analysts' expectations of $9.79 billion, demonstrating strong performance amid AI data center expansion and solidifying its market position.
- Accelerated Financial Goals: In response to surging AI demand, HPE has accelerated its long-term financial targets by two years, now projecting fiscal 2026 revenue growth of 29% to 33%, significantly higher than the previous forecast of 17% to 22%, reflecting robust market demand for its products.
- Increased Adjusted EPS: HPE raised its adjusted EPS forecast for fiscal 2026 to a range of $3.35 to $3.45, up from the earlier projection of $2.30 to $2.50, indicating enhanced profitability in the AI-driven market landscape.
- Future Growth Framework: HPE introduced a growth framework for fiscal 2027, expecting revenue growth of 8% to 12%, adjusted EPS growth of 12% to 16%, and a commitment to achieve at least $4.5 billion in free cash flow, showcasing the company's confidence in future prospects.
See More
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- Impressive Earnings: Dell Technologies reported a net revenue of $43.8 billion for Q1 FY2027, marking an 88% year-over-year increase, with profits tripling to $3.4 billion, highlighting the company's strong growth potential in the AI sector.
- AI Server Surge: Revenue from AI-optimized servers reached $16.1 billion in Q1, soaring by 757%, significantly surpassing the previous quarter's growth of 342%, indicating robust market demand for AI products that is driving substantial performance improvements.
- Stock Price Surge: Over the past month, Dell's stock has more than doubled, with year-to-date returns around 260%, pushing its trailing P/E ratio to 50 and forward P/E to 32, reflecting investor optimism about its future growth prospects.
- Market Risks: Despite Dell's promising outlook, the rapid rise in stock price may expose it to correction risks, prompting investors to tread carefully given its inflated valuation and recent market volatility, which could lead to potential losses.
See More
