Dear Dell Stock Fans, Mark Your Calendars for May 28
Semiconductor forecasts have been raised to 62.7% growth as demand for memory keeps climbing. Computing and data storage are expected to jump 90% year-over-year (YOY) to more than $700 billion. At the same time, global IT spending is set to hit $6.31 trillion, up 13.5% from last year, driven by data centers and infrastructure buildouts.…
Semiconductor forecasts have been raised to 62.7% growth as demand for memory keeps climbing. Computing and data storage are expected to jump 90% year-over-year (YOY) to more than $700 billion.
At the same time, global IT spending is set to hit $6.31 trillion, up 13.5% from last year, driven by data centers and infrastructure buildouts. AI demand is also lifting companies across the space, with names like Broadcom (AVGO) aiming for over $100 billion in AI-related revenue.
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Several AI-focused stocks have posted strong gains, helped by steady demand for cloud, AI hardware, and enterprise tech.
That brings Dell Technologies (DELL) into focus as it gets ready to report fiscal Q1 2027 results. The company will hold its conference call on May 28 at 3:30 p.m. CDT. The stock has nearly doubled this year, driven by strong AI server demand, and analysts expect Q1 EPS of $2.99, up about 112% from last year.
But can Dell Technologies keep this pace going through the rest of fiscal 2027?
DELL’s Numbers So Far
Dell makes money across PCs, servers, storage, and enterprise infrastructure, with a growing focus on data center and AI-related products.
The stock has been on a strong run, up 121.12% over the past year and another 94.76% so far this year.
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Even after that rally, the valuation is still reasonable. The stock trades at a forward price-to-earnings of 20.5 times, below the sector average of 24.42 times.
It pays a dividend, with a 0.90% yield and a quarterly payout of $0.63, last paid on April 21. The forward payout ratio is 21.93%, and Dell Technologies has raised its dividend for four straight years, alongside a recently expanded $10 billion share buyback plan.
Last quarter, revenue hit a record $33.4 billion, up 39% YOY, while EPS came in at $3.37, or $3.89 on a non-GAAP basis. Operating cash flow was $4.7 billion. For full-year fiscal 2026, revenue reached $113.5 billion, up 19%, with EPS of $8.68 and cash flow of $11.2 billion. Looking ahead, the company is guiding for 23% revenue growth and 33% EPS growth, which puts pressure on the May 28 report to show that this pace can continue.
Growth Drivers Behind the Business
Dell Technologies is working more closely with Trust3 AI to build safer and more controlled data systems. The partnership adds built-in data governance to Dell’s Data Lakehouse setup, combining strong storage with constant protection. This helps companies run analytics and AI workloads across cloud and on-site systems without risking sensitive data. It plugs what they call the “governance gap.” The setup works across Dell platforms like ECS, ObjectScale, and PowerScale.
At the same time, Dell Technologies is stepping up its security tools as risks grow. The company is adding stronger protection to deal with both AI-related threats and future risks like quantum computing. Its approach covers everything from devices to data centers, with better threat detection, tougher systems, and faster recovery if something goes wrong.
Dell Technologies is also going deeper with Nvidia (NVDA). Its AI Data Platform is built to handle the full data process and support high-performance storage for heavy AI workloads.
Wall Street Sentiment and Price Targets
Analysts see earnings for the April 2026 quarter at $2.99 per share, up from $1.41 a year ago, which would mean 112.06% growth. For the July 2026 quarter, the estimate is $2.74, up from $2.10 last year, or 30.48% growth. For full-year fiscal 2027, analysts expect earnings of $11.90 per share, up from $9.25, which would be 28.65% growth.
Mizuho kept its “Outperform” rating and raised its price target to $300 from $260, saying higher demand for agentic AI workloads should keep server demand strong. Citi also raised its target to $235 from $180 and kept a “Buy” rating, pointing to solid AI server demand and better storage execution.
Still, not everyone is convinced the stock has much room left. Dell Technologies shares fell 5.2% intraday on May 11 and another 3.3% on May 12 after UBS cut the stock to “Neutral” from “Buy,” even while raising its price target to $243 from $167. UBS analyst David Vogt said stronger server demand may already be priced into the stock.
Even with that caution, 25 analysts surveyed give a consensus rating of a “Moderate Buy.” The average price target is $191.95, but with the stock has already surpassed that, with shares 21.6% above that level.
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Conclusion
With Dell heading into its May 28 report, the setup looks strong, but expectations are undeniably high. The company has real momentum behind it, from accelerating earnings growth and AI infrastructure demand to expanding partnerships and solid cash generation. Nevertheless, with the stock already trading well above the average analyst target, the next move will likely depend less on whether Dell beats estimates and more on how confident management sounds about demand holding up through the rest of fiscal 2027. My base case is that shares can keep trending higher if guidance stays firm, but the near-term reaction could be volatile simply because so much optimism is already priced in.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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