Susquehanna has reiterated its Positive rating on Dell Technologies (NYSE: DELL) and maintained a $700 price target.
The updated Dell price target implies approximately 28% upside from the stock’s current price of about $543, according to a September 29 analyst note.
Analyst Mehdi Hosseini pointed to growing demand for AI inferencing as a key catalyst for Dell’s server business. Susquehanna expects traditional server revenue to double in fiscal 2027 before continuing to grow at a double-digit compound annual growth rate through fiscal 2029.
According to the analyst, enterprise customers and neocloud service providers are increasing spending on computing infrastructure needed for AI inferencing applications.
This trend is expected to drive further growth across Dell’s server segment and support upside to fiscal 2028 and fiscal 2029 estimates.
Hosseini noted that inferencing is becoming an increasingly important demand driver for original equipment manufacturers such as Dell, helping sustain growth beyond the initial wave of AI training deployments.
Meanwhile, Wall Street’s broader outlook on Dell remains constructive. TradingView data shows a consensus 12-month Dell stock forecast of approximately $595, representing modest upside from current levels.
Among the more bullish projections, Susquehanna’s $700 target ranks near the top of Wall Street estimates, while some analysts have issued targets as high as $735. Current analyst ratings remain concentrated in the ‘Buy’ and ‘Strong Buy’ categories.
DELL stock fundamentals
The latest analyst update follows a strong year for Dell, which has emerged as a major beneficiary of the AI infrastructure boom.
In its fiscal second-quarter 2027 results reported on September 1, Dell posted record revenue of $47 billion, up 58% year-over-year. Non-GAAP diluted earnings per share came in at $7.04, representing growth of 203% from the same period last year.
AI-optimized servers remained the primary growth driver. Dell reported record AI server orders of $60.9 billion during the quarter and exited the period with a record AI backlog of $95 billion. Revenue from AI servers reached $16.4 billion, up 100% from a year earlier.
The company also raised its full-year fiscal 2027 guidance, projecting revenue of $192 billion and AI server revenue of $74 billion as AI infrastructure demand continues to accelerate.
Overall, Dell shares have delivered significant gains over the past year as investors increasingly bet on the company’s role in the expanding AI infrastructure market.
However, analysts continue to monitor AI spending trends, execution of the company’s large backlog, and broader volatility across the AI hardware sector.
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