Why the epic Dell stock price surge isn't over, Goldman Sachs says

Why the epic Dell stock price surge isn't over, Goldman Sachs says Brian Sozzi · Executive Editor Tue, June 2, 2026 at 3:29 PM GMT+2 2 min read DELL Dell ( DELL ) is just revving up after an eye-popping quarter. The news: Goldman Sachs analyst Katherine Murphy reiterated a Buy rating on Dell in a note on Tuesday. Murphy set the price target at $500, implying about 15% more upside from current trading levels.

Murphy points to three factors as likely further drivers of Dell’s already hot stock price: Enterprise IT hardware spend is growing as companies race to upgrade infrastructure to support AI initiatives. Dell’s strong fiscal year 2027 outlook is constrained by supply, not demand. That is often a combination for strong profit margins.

Dell’s operating margin outperformance demonstrates the benefits of the company’s scale and supply chain. The analysis: Dell said last Thursday evening it sees $167 billion in fiscal year 2027 revenue, including a staggering $60 billion from AI server sales. That's up sharply from a prior outlook of about $140 billion and blew past analysts’ average estimate of $142.

1 billion. The numbers from the most recent quarter were almost hard to believe as well. First quarter sales surged 88% to $43.

8 billion against analyst estimates of $35. 5 billion. The company booked $24.

4 billion in AI orders in a single quarter and ended the period sitting on a backlog of $51. 3 billion in AI server orders. “This is what an AI supercycle looks like,” Evercore ISI analyst Amit Daryanani wrote in a note.

The stock finished Friday’s session up a sizzling 32. 8%. The stock rose another 10.

7% on Monday and is up 2. 5% in premarket trading today. AlphaSpace intel: It’s not too hard to find the impact of the AI boom on Dell’s financials.

The company’s sales have grown by a double-digit percentage year over year for the past four quarters, according to AlphaSpace data. Bottom line: Dell stock may keep rising. Not only was its quarter and guidance rock-solid, but rival Hewlett Packard Enterprise also delivered bullish results and an upbeat outlook to match.

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories?

Email brian. sozzi@yahoofinance. com.