Dell Technologies Raises FY2027 Revenue Outlook to $167B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.AI BOOM:Shares of Dell Technologiesjumped on Friday after the company posted a sharply better than expected quarter and issued a major revenue outlook increase driven by accelerating demand for AI infrastructure. Dell said late Thursday it now expects $167B in revenue for fiscal 2027, up from a prior forecast of about $140B. The new outlook includes an estimated $60B in AI server sales alone, far above analysts' average estimate of $142.1B for total revenue.Results for the quarter also exceeded expectations by a wide margin. Q1 revenue rose 88% year-over-year to $43.8B, compared with analyst estimates of $35.5B. The company reported $24.4B in AI orders, $16.1B in AI server revenue, and ended the quarter with a $51.3B backlog of AI server orders."This is what an AI supercycle looks like," Evercore ISI analyst Amit Daryanani wrote in a research note. The stock's rally — up 32% on Friday — puts Dell on track for its best single trading day since returning to the public markets in 2018.ANTHROPIC DEBT DEAL:Apollo Globaland Blackstoneare aiming to bring extra investors into a roughly $36B debt financing deal to help Anthropic develop its AI infrastructure, Bloomberg's Paula Seligson, Scott Carpenter, and Silas Brown. The debt will be used to buy Google'scustom TPU chips, which the Claude maker will then lease, the authors say, citing people with knowledge of the matter. Broadcom, which helps Google make the chips, is backstopping payments on the biggest portion of the transaction, the authors note.ENTERPRISE AI UNIT:Metais creating an Enterprise Solutions unit that embeds engineers and product managers directly with large corporate customers to accelerate adoption and deployment of its AI tools, The Information's Jyoti Mann.
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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: 317.050
Low
113.00
Averages
164.85
High
180.00
Current: 317.050
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.
Dell Technologies Shares Surge 32.8% After Blockbuster Earnings Report
- Revenue Surge: Dell Technologies reported an impressive 88% year-over-year revenue increase to $43.8 billion in Q1 FY2027, highlighting the company's strong market performance, particularly in AI-driven growth.
- Infrastructure Solutions Growth: The Infrastructure Solutions Group saw revenue skyrocket 181% to $29 billion, primarily driven by a staggering 757% increase in AI-optimized server sales, reaching $16.1 billion, indicating Dell's robust competitiveness in the data center market.
- Profit Boost: Dell's adjusted net income soared 194% to $3.2 billion, with adjusted earnings per share jumping 214% to $4.86 due to stock buybacks, showcasing the company's successful strategies in enhancing profit margins.
- Optimistic Outlook: Dell anticipates a 47% revenue growth for the full year, projecting between $165 billion and $169 billion, with adjusted earnings expected to rise 74% to $17.90, reflecting the company's sustained optimism in the AI market.
See More
Palantir Shares Surge 10% Following Dell's Earnings Report
- AI Market Opportunity: Palantir's stock surged approximately 10% following Dell's strong earnings report, reflecting the ongoing demand for AI infrastructure, particularly as Dell's AI-optimized server revenue skyrocketed 757% year-over-year to $16.1 billion, indicating robust market appetite for AI solutions.
- Strengthened Partnership: The collaboration between Palantir and Dell introduced a product integrating Palantir's Foundry and AIP software into the Dell AI Factory, making every regulated enterprise purchasing a Dell AI Factory a potential Palantir customer, thereby expanding its market potential.
- Industry Trend Support: Snowflake's earnings report revealed a 34% year-over-year increase in product revenue, raising its full-year product revenue outlook to $5.84 billion, further fueling the overall rally in software stocks, with Palantir benefiting as an AI software provider in this trend.
- Optimistic Market Sentiment: Prediction market Polymarket indicated a 98% probability of Palantir closing higher on May 29, while investor sentiment on Reddit rebounded to a bullish score of 75, suggesting increased confidence in Palantir's future performance.
See More
JPMorgan Aggressively Raises Dell Price Target to $500
- Significant Target Increase: JPMorgan analyst Samik Chatterjee raised Dell's price target from $280 to $500, a 144% increase, reflecting strong confidence in Dell's future earnings potential, particularly amid a surge in AI orders.
- Robust AI Orders: Dell booked $24 billion in AI orders in the latest quarter, bringing total backlog to $51 billion, while raising its AI revenue outlook to $60 billion, implying a 144% year-over-year growth that will significantly boost revenue and market share.
- Medium-Term Growth Potential: Chatterjee increased Dell's valuation multiple from the high teens to 25 times, indicating confidence in Dell's sustainable growth trajectory, driven by device refreshes, infrastructure upgrades, and AI-related capacity needs.
- Support from Non-AI Business: Dell's strong performance in storage products and traditional servers, particularly with proprietary IP, further supports the company's gross margin outlook, showcasing Dell's competitive edge and profitability in the market.
See More
Micron Technology Stock Overbought, Market Cap Surpasses $1 Trillion for First Time
- Micron Stock Surge: Driven by insatiable demand for memory chips in AI applications, Micron's stock soared 29% this week, marking its market capitalization surpassing $1 trillion for the first time, reflecting strong market confidence in its future growth prospects.
- UBS Price Target Increase: UBS raised Micron's price target to $1,625, implying a 67% upside from Friday's close, as analysts believe the market will assign a more 'normal' valuation multiple as AI drives structural changes in the memory sector.
- Dell's Impressive Performance: Dell Technologies saw a 33% stock increase this week, achieving its largest single-day gain on Friday, with Q1 revenue of $43.84 billion exceeding analyst expectations of $35.43 billion and a year-over-year growth rate of nearly 88%, showcasing its strong position in the AI data center market.
- Ford's Investor Optimism: Ford Motor's stock rose 17% this week, with an RSI of 80, as analysts noted that optimism surrounding its battery energy storage system has boosted investor sentiment, leading to a price target increase from $17 to $20, indicating a further 15% upside potential.
See More
Stocks Hit Record Highs Again, Driven by Tech Gains
- Market Performance: Last week, the S&P 500 and Nasdaq Composite rose over 1% and 2%, respectively, marking the S&P 500's ninth consecutive week of gains and the Nasdaq's eighth out of the last nine weeks, reflecting strong investor confidence in the market.
- Tech Stock Surge: Snowflake's quarterly earnings exceeded expectations and included a $6 billion AI compute deal with Amazon, leading to a more than 36% single-day stock price increase, which reignited enthusiasm across the tech sector and boosted stocks like Dell and Broadcom significantly.
- Cybersecurity Stock Volatility: Zscaler's disappointing earnings report resulted in its worst single-day performance, negatively impacting peers CrowdStrike and Palo Alto Networks; however, Okta's strong earnings report led to a 30% stock price jump, indicating ongoing demand in the cybersecurity sector.
- Middle East Situation's Market Impact: Despite mixed signals from the Middle East, rumors of peace progress between Iran and the U.S. spurred market gains, although the White House dismissed the reports, investor optimism still supported the stock market's upward trajectory.
See More
Nvidia and Microsoft to Launch First Windows OS Computers with Nvidia Chips
- First Windows Computers: Nvidia and Microsoft are expected to debut the first Windows OS computers using Nvidia chips as the main processor next week, marking a significant collaboration that could drive demand for high-performance computing devices.
- Brand Collaboration: The new computers will include products from Microsoft's Surface brand as well as other manufacturers like Dell, which will help expand Nvidia's market penetration and enhance its position in a competitive landscape.
- Market Reaction: Although Reuters could not immediately verify the report, if true, it may generate strong consumer and enterprise interest in the new high-performance computers, potentially boosting sales of related products.
- Industry Impact: This launch could not only change consumer perceptions of Windows computers but also prompt other manufacturers to accelerate the adoption of Nvidia's technology, further solidifying its leadership in AI and graphics processing.
See More
Dell Technologies Shares Surge 32.8% After Blockbuster Earnings Report
- Revenue Surge: Dell Technologies reported an impressive 88% year-over-year revenue increase to $43.8 billion in Q1 FY2027, highlighting the company's strong market performance, particularly in AI-driven growth.
- Infrastructure Solutions Growth: The Infrastructure Solutions Group saw revenue skyrocket 181% to $29 billion, primarily driven by a staggering 757% increase in AI-optimized server sales, reaching $16.1 billion, indicating Dell's robust competitiveness in the data center market.
- Profit Boost: Dell's adjusted net income soared 194% to $3.2 billion, with adjusted earnings per share jumping 214% to $4.86 due to stock buybacks, showcasing the company's successful strategies in enhancing profit margins.
- Optimistic Outlook: Dell anticipates a 47% revenue growth for the full year, projecting between $165 billion and $169 billion, with adjusted earnings expected to rise 74% to $17.90, reflecting the company's sustained optimism in the AI market.
See More
Palantir Shares Surge 10% Following Dell's Earnings Report
- AI Market Opportunity: Palantir's stock surged approximately 10% following Dell's strong earnings report, reflecting the ongoing demand for AI infrastructure, particularly as Dell's AI-optimized server revenue skyrocketed 757% year-over-year to $16.1 billion, indicating robust market appetite for AI solutions.
- Strengthened Partnership: The collaboration between Palantir and Dell introduced a product integrating Palantir's Foundry and AIP software into the Dell AI Factory, making every regulated enterprise purchasing a Dell AI Factory a potential Palantir customer, thereby expanding its market potential.
- Industry Trend Support: Snowflake's earnings report revealed a 34% year-over-year increase in product revenue, raising its full-year product revenue outlook to $5.84 billion, further fueling the overall rally in software stocks, with Palantir benefiting as an AI software provider in this trend.
- Optimistic Market Sentiment: Prediction market Polymarket indicated a 98% probability of Palantir closing higher on May 29, while investor sentiment on Reddit rebounded to a bullish score of 75, suggesting increased confidence in Palantir's future performance.
See More
JPMorgan Aggressively Raises Dell Price Target to $500
- Significant Target Increase: JPMorgan analyst Samik Chatterjee raised Dell's price target from $280 to $500, a 144% increase, reflecting strong confidence in Dell's future earnings potential, particularly amid a surge in AI orders.
- Robust AI Orders: Dell booked $24 billion in AI orders in the latest quarter, bringing total backlog to $51 billion, while raising its AI revenue outlook to $60 billion, implying a 144% year-over-year growth that will significantly boost revenue and market share.
- Medium-Term Growth Potential: Chatterjee increased Dell's valuation multiple from the high teens to 25 times, indicating confidence in Dell's sustainable growth trajectory, driven by device refreshes, infrastructure upgrades, and AI-related capacity needs.
- Support from Non-AI Business: Dell's strong performance in storage products and traditional servers, particularly with proprietary IP, further supports the company's gross margin outlook, showcasing Dell's competitive edge and profitability in the market.
See More
Micron Technology Stock Overbought, Market Cap Surpasses $1 Trillion for First Time
- Micron Stock Surge: Driven by insatiable demand for memory chips in AI applications, Micron's stock soared 29% this week, marking its market capitalization surpassing $1 trillion for the first time, reflecting strong market confidence in its future growth prospects.
- UBS Price Target Increase: UBS raised Micron's price target to $1,625, implying a 67% upside from Friday's close, as analysts believe the market will assign a more 'normal' valuation multiple as AI drives structural changes in the memory sector.
- Dell's Impressive Performance: Dell Technologies saw a 33% stock increase this week, achieving its largest single-day gain on Friday, with Q1 revenue of $43.84 billion exceeding analyst expectations of $35.43 billion and a year-over-year growth rate of nearly 88%, showcasing its strong position in the AI data center market.
- Ford's Investor Optimism: Ford Motor's stock rose 17% this week, with an RSI of 80, as analysts noted that optimism surrounding its battery energy storage system has boosted investor sentiment, leading to a price target increase from $17 to $20, indicating a further 15% upside potential.
See More
Stocks Hit Record Highs Again, Driven by Tech Gains
- Market Performance: Last week, the S&P 500 and Nasdaq Composite rose over 1% and 2%, respectively, marking the S&P 500's ninth consecutive week of gains and the Nasdaq's eighth out of the last nine weeks, reflecting strong investor confidence in the market.
- Tech Stock Surge: Snowflake's quarterly earnings exceeded expectations and included a $6 billion AI compute deal with Amazon, leading to a more than 36% single-day stock price increase, which reignited enthusiasm across the tech sector and boosted stocks like Dell and Broadcom significantly.
- Cybersecurity Stock Volatility: Zscaler's disappointing earnings report resulted in its worst single-day performance, negatively impacting peers CrowdStrike and Palo Alto Networks; however, Okta's strong earnings report led to a 30% stock price jump, indicating ongoing demand in the cybersecurity sector.
- Middle East Situation's Market Impact: Despite mixed signals from the Middle East, rumors of peace progress between Iran and the U.S. spurred market gains, although the White House dismissed the reports, investor optimism still supported the stock market's upward trajectory.
See More
Nvidia and Microsoft to Launch First Windows OS Computers with Nvidia Chips
- First Windows Computers: Nvidia and Microsoft are expected to debut the first Windows OS computers using Nvidia chips as the main processor next week, marking a significant collaboration that could drive demand for high-performance computing devices.
- Brand Collaboration: The new computers will include products from Microsoft's Surface brand as well as other manufacturers like Dell, which will help expand Nvidia's market penetration and enhance its position in a competitive landscape.
- Market Reaction: Although Reuters could not immediately verify the report, if true, it may generate strong consumer and enterprise interest in the new high-performance computers, potentially boosting sales of related products.
- Industry Impact: This launch could not only change consumer perceptions of Windows computers but also prompt other manufacturers to accelerate the adoption of Nvidia's technology, further solidifying its leadership in AI and graphics processing.
See More
