Dell Technologies (DELL) Stock Forecast & Price Target

Dell Technologies is well positioned to benefit from a multi-year AI infrastructure buildout, with a record $95 billion AI server backlog, $60.9 billion in Jul ’26 orders, and no reported cancellations, giving strong visibility into future revenue. Its outlook is reinforced by share gains across neoclouds, enterprises, and channel-led storage demand, while inference and agentic AI workloads are also supporting incremental demand for traditional servers and higher-value storage attach. Financially, the company’s 2Q27 results showed AI server revenue of about $16.4 billion, traditional servers and networking up 122% year over year to $10.5 billion, and storage up 26% to $4.9 billion, alongside 15% ISG operating margins and robust free cash flow generation.

Dell Technologies is facing a negative fundamental setup because its AI server growth is increasingly constrained by DRAM and NAND shortages, while higher component costs and a heavier mix of lower-margin AI hardware pressure profitability. Although it has $95B of AI server backlog and booked $24.4B in AI orders with $16.1B of AI revenue and $51.3B of backlog, much of that demand is concentrated in large cloud deals that are margin-dilutive and vulnerable to supply bottlenecks. At the same time, its CSG business faces near- and mid-term headwinds as IT spending shifts toward infrastructure, and management already flagged FY26 product gross margin down about 210 bps y/y to ~13.7%, with further margin-rate pressure expected in FY27.