Goldman Sachs analyst Katherine Murphy reiterated a Buy rating on Dell Technologies stock with a $500 price target, implying about 15% upside. The firm’s bullish stance is based on Dell’s raised fiscal year 2027 revenue outlook to $167 billion, including $60 billion from AI server sales, which surpassed prior estimates. Strong AI-related demand and supply-constrained growth are seen as key drivers for the stock’s continued rally.
Analysts at Goldman Sachs suggest the recent rally in Dell Technologies stock has more room to run. Analyst Katherine Murphy reiterated a Buy rating and set a price target at $500, implying about 15% more upside from current trading levels.
Murphy noted that Dell’s recent earnings and guidance set a strong precedent for the stock’s future. The company now sees $167 billion in fiscal year 2027 revenue, a sharp increase from a prior outlook of about $140 billion.
This forecast includes a staggering $60 billion from AI server sales. Murphy writes that Dell’s strong outlook is constrained by supply, not demand, which often supports strong profit margins.
Dell recently reported better-than-expected Q1 revenue of $43.84 billion and adjusted EPS of $4.86. AI-related demand and server sales were cited as major growth drivers.
On a post-earnings call, Dell’s chief operating officer, Jeff Clarke, stated, “We’re repricing, it feels like, every day. And I’m sure our customers feel that pain. Unfortunately, I don’t see that changing given the world that we’re living in today, where you have an inflationary environment.”
Goldman Sachs is not alone in its bullish view on Dell stock. Based on data from TipRanks, the average 12-month price target among 20 analysts is $455, with a high forecast of $550.
Evercore ISI analyst Amit Daryanani also reinstated coverage with an Outperform rating and a $450 price target. “This is what an AI supercycle looks like,” Daryanani wrote in a recent note.
