Update shared on30 Aug 2025
Fair value Increased 2.57%Dell Technologies’ consensus price target has been raised as analysts cite strong AI server demand and revenue upside from hyperscalers despite concerns over gross margin compression and mixed PC outlook, resulting in a revised price target of $145.48.
Analyst Commentary
- Bullish analysts raise price targets based on Dell's strong momentum in AI server demand, citing significant revenue upside potential from large hyperscaler clients and improved supply chain visibility.
- Several firms highlight clear industry leadership in AI servers, with projections for AI-related revenue to exceed previous expectations through FY26.
- Some analysts express concerns about gross margin pressures, particularly in the Infrastructure Solutions Group (ISG) segment, as AI server growth is occurring at lower margins than legacy offerings.
- The fiscal 2026 outlook reflects optimism in revenue and EPS growth, driven by enterprise/sovereign AI adoption and improving enterprise hardware spending trends outside consumer and print.
- Bearish analysts note ongoing headwinds, including subdued notebook shipments, continued gross margin compression due to the product mix shift toward AI servers, and skepticism regarding the scale of a potential PC refresh cycle.
What's in the News
- U.S. authorities have placed tracking devices in shipments of advanced chips considered high-risk for diversion to China, with trackers reportedly used on servers from Dell and Super Micro, and chips from Nvidia and AMD (Reuters).
- The number of "boomerang CEOs" in the U.S. has reached a 10-year high, with Dell Technologies among the companies currently led by CEOs returning for a second stint (Financial Times).
- Dell confirmed that a hacker group accessed its Customer Solution Centers demonstration platform, which is separated from core customer and partner systems, and is now attempting extortion (BleepingComputer).
Valuation Changes
Summary of Valuation Changes for Dell Technologies
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $142.76 to $145.48.
- The Consensus Revenue Growth forecasts for Dell Technologies has significantly fallen from 6.7% per annum to 5.3% per annum.
- The Future P/E for Dell Technologies has risen from 15.84x to 16.94x.
Disclaimer
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