Dell stock prediction: $663 bull case and $408 bear case
By Tobi Opeyemi Amure
AI summary of the source article
Dell Technologies closed at $552.29, representing 21.7 times its fiscal 2027 non-GAAP diluted EPS guidance of $25.50. Valuation modeling presents a bull case target of $663 at 26 times guidance, alongside a base case of $561 and a bear case of $408. Dell reported fiscal second-quarter revenue of $46.971 billion, GAAP net income of $4.133 billion, and free cash flow of $986 million. The full-year outlook anticipates $192.0 billion in total revenue and $74.0 billion in AI-optimized server sales, backed by an existing $95 billion AI order backlog.
Why it matters
The analysis evaluates how market pricing reflects Dell's massive AI server backlog and whether earnings multiples can expand beyond existing consensus estimates.
Key facts
- Dell closed at $552.29, trading at approximately 21.7 times its fiscal 2027 non-GAAP diluted EPS guidance of $25.50.
- Fiscal second-quarter revenue reached $46.971 billion, while full-year AI-optimized server revenue is projected at $74.0 billion.
- Dell holds an AI backlog of $95 billion, with about $53.5 billion remaining beyond the current fiscal year's delivery targets.