Prediction: Dell Technologies Stock Could Be 30% Higher by This Time Next Year
Prediction: Dell Technologies Stock Could Be 30% Higher by This Time Next Year
Vandita JadejaThu, July 23, 2026 at 4:00 PM UTC
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Dell (DELL) booked $24.4 billion in AI orders last quarter as AI-optimized server revenue surged 757%, supporting a $525 price target within 12 months.
At 22x forward earnings on 74% EPS growth, Dell's PEG ratio of 0.65 signals the stock trades cheap relative to peers with far lower growth rates.
Gross margin compressed from 21% to 18% as AI servers dominate the revenue mix, fueling investor debate that is capping Dell's valuation multiple.
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Dell Technologies (NYSE:DELL | DELL Price Prediction) has quietly become one of the most important AI infrastructure names on the market. Shares have ripped 224% higher year to date, and the last earnings report made clear why.
AI-optimized server revenue jumped 757% year over year to $16.13 billion in a single quarter, and Dell booked $24.4 billion in AI orders in that same three-month window. I think $525 by this time next year is the target.
DELL Price Target — 24/7 Wall St.Why Dell Shares Have Cooled Off in the Last Month
Dell has cooled recently. Shares are down 11.53% over the past week and 1.15% over the past month, cooling from a 52-week high of $468.70. The reason is straightforward.
Gross margin compressed to 17.8% from 21.1% as AI servers, which carry lower margins than legacy hardware, took over the revenue mix. With a beta of 1.376, shares swing harder than the market in both directions. Investors are wrestling with whether Dell is a fat-margin IT vendor or a thin-margin AI systems integrator. That debate is capping the multiple.
Wall Street Sees Roughly 24% Upside. Our Model Sees More
The Street is constructive. Analyst consensus sits at $501.04, with 5 Strong Buys, 14 Buys, 8 Holds, and zero Sells. Our base case lands at $487.57, implying 20.64% upside with a bull case of $507.78. Confidence on the model reads 0.9, or high.
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Consensus is directionally right but hasn't fully priced the earnings acceleration. With 70% of analysts bullish and quarterly EPS growing 2.825x year over year, estimates should keep chasing reality higher.
DELL Analyst Ratings — 24/7 Wall St.The Path to $525 Per Share
Reaching $525 from today's price of $404.15 requires a gain of 29.9%. With forward EPS of $18.20, a price of $525 implies a forward P/E of 29x. Our base case of $487.57 already implies roughly 30x, so the bold target simply needs earnings to deliver, not additional multiple expansion.
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Dell's FY27 guidance calls for non-GAAP EPS of $17.90 at the midpoint, up 74% year over year, and revenue between $165 billion and $169 billion. Full-year AI-optimized server revenue is guided to approximately $60 billion, up 144%. CEO Jeff Clarke framed the setup bluntly on the last call: "Our momentum in AI is unmatched."
With over 3,000 enterprise AI customers and a five-quarter pipeline running at multiples of backlog, the earnings power is real. The primary risk is margin compression outpacing volume growth if AI mix accelerates too fast.
DELL Price Scenario — 24/7 Wall St.Where Dell Trades Today vs Its Earnings Power
At $404.15, Dell trades at roughly 22x forward EPS of $18.20, versus a trailing P/E of 30x. Shares sit between a 52-week low of $109.70 and a high of $468.70. Over ten years, the stock has returned 1,980.61%.
A 22x forward multiple on a business growing earnings 74% is arguably cheap relative to peers generating a fraction of that growth. The PEG ratio at 0.65 tells the same story.
Is $525 Realistic? My Verdict
$525 requires a 29.9% gain and a forward P/E of 28.8x. I think it's realistic.
For it to happen, three things need to go right: Dell needs to convert the $43 billion AI backlog without slippage, gross margin needs to stabilize as ISG operating leverage kicks in, and analysts need to keep revising estimates higher. A sharp slowdown in hyperscaler AI capex would derail it. We've outlined the blueprint for how Dell Technologies could reach $525 in 2027.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Dell Technologies didn't make the cut. Grab the names FREE today.
Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
