Dell Technologies (DELL) Is Up 7.0% After Raising Long-Term AI Growth and Dividend Targets

• Earlier this week, Dell Technologies nearly doubled its long-term revenue and profit growth forecasts, now anticipating 7% to 9% annual sales growth and adjusted earnings per share rising 15% or more through fiscal 2030, citing unprecedented demand for its AI-optimized servers and infrastructure solutions from enterprise customers globally.
• This raised outlook coincides with Dell's commitment to extend its annual dividend growth of 10% or more through fiscal 2030, signaling strong executive confidence in the company’s momentum as AI adoption accelerates across digital infrastructure markets.
• We'll now explore how Dell's sharply increased AI-driven growth targets could alter the company's investment thesis and long-term prospects.

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Dell Technologies Investment Narrative Recap

To own Dell Technologies, you need confidence that its transition to AI infrastructure will deliver durable earnings growth, outweighing potential margin dilution and headwinds from the stagnating PC and traditional server markets. The company's nearly doubled growth outlook benefits from AI server momentum, which remains the most important short-term catalyst, but it does not completely remove the risk of margin compression as legacy segments still face competitive and pricing pressure.

Dell’s new collaboration with Digital Realty and DXC, focused on enabling secure and scalable AI deployments through the Dell AI Factory, directly advances the AI-driven growth story behind its upgraded forecasts. By supporting enterprise customers with integrated solutions for private AI infrastructure, this partnership amplifies Dell’s position in high-value markets aligned with its stated catalysts for revenue expansion and improved margin potential.

Yet, investors should be aware that while AI growth is promising, there remains ongoing risk that increased AI revenues could be rate (margin) dilutive if the associated costs and conversion rates lag expectations...

Read the full narrative on Dell Technologies (it's free!)

Dell Technologies' outlook anticipates $122.2 billion in revenue and $7.4 billion in earnings by 2028. This reflects a 6.4% annual growth in revenue and a $2.6 billion increase in earnings from the current $4.8 billion.

Uncover how Dell Technologies' forecasts yield a $150.09 fair value, in line with its current price.

Exploring Other Perspectives

Across 23 fair value estimates from the Simply Wall St Community, Dell’s perceived worth ranges from US$102.13 to US$193.51 per share. While many see upside in the company’s expanding enterprise AI business, concerns about margin pressure in legacy segments continue to shape the debate.

Explore 23 other fair value estimates on Dell Technologies - why the stock might be worth 32% less than the current price!

Build Your Own Dell Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free Dell Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dell Technologies' overall financial health at a glance.

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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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