Dell Technologies (DELL): Evaluating Valuation After Credit Upgrade and AI Infrastructure Momentum

Fitch Ratings has upgraded Dell Technologies (NYSE:DELL), highlighting the company’s rapid expansion in AI servers and stable financial leverage. At the same time, Dell’s new PowerEdge XR8720t server and new strategic partnerships are reinforcing its position in AI infrastructure.

See our latest analysis for Dell Technologies.

It’s been a milestone stretch for Dell Technologies, with shares recently hitting a new one-year high. Momentum is being fueled by a surge in its AI server business, positive credit upgrades, and new product innovation. With investor attention on Dell's role as an enterprise AI enabler, the stock’s robust long-term returns and fresh partnerships signal confidence in both near-term growth and the company’s broader ambitions.

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With Dell hitting new highs and analysts raising targets in response to surging AI momentum, the question for investors is sharp: Is there still room for upside, or has the market already priced in future growth?

Most Popular Narrative: 6% Undervalued

With Dell Technologies’ narrative fair value now at $150.09 per share, and a last close of $140.74, the numbers hint at room to run. The current pricing suggests that analysts see future growth surpassing what’s already in the share price.

The rapid expansion of Dell's enterprise AI customer base and increasing enterprise-specific offerings (such as integrated AI factory solutions and PCIe options) improve both revenue visibility and margin potential, as enterprise customers typically require higher-value, higher-margin services and infrastructure.

Read the complete narrative.

Curious about the bold financial blueprint behind this valuation? There is a set of forward-looking growth assumptions and ambitious profitability targets driving that fair value. If you want to see what numbers could reshape investor expectations, you will want to dig into the key drivers behind the future price rationale.

Result: Fair Value of $150.09 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing hardware commoditization and margin pressures, especially from Dell's legacy segments, could challenge the optimistic outlook if trends do not improve.

Find out about the key risks to this Dell Technologies narrative.

Build Your Own Dell Technologies Narrative

Prefer to chart your own course or have a different take? Discover how quickly you can build your own narrative in just a few minutes. Do it your way.

A great starting point for your Dell Technologies research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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