Analyst Upside

AU · rank #3 · 2026-07-27

DELL

NYSE · $261.14B (USD)

SignalStrong Buy7.8strength 7.8 / 10
verdict · PROCEED

The exact numbers the algorithm saw.

Factor scores and the inputs behind this pick.
Composite score
Z-score blend of all factors below.
3.058
EPS revisions (30d)
Change in consensus EPS estimate over the past 30 days ($/share).
+$1.07
Net revisions (30d)
Number of analysts revising upward minus downward.
4
Insider signal (90d)
$0 across 0 unique buyers.
-0.109
Analyst upside
Consensus target $501.04
+14.5%
Momentum acceleration
3-month minus 12-month momentum.
+53.18%
Analyst rating
5 = Strong Buy, 1 = Strong Sell.
4.22
Gross margin TTM+19.2%
52w high$468.70
Market cap (USD)$261.14B

The AI research card

Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.

Summary

Dell Technologies is a large-scale IT infrastructure and PC vendor that has rapidly repositioned as a leading AI-optimized server provider through its Dell AI Factory with Nvidia, entering FY2028 with a record $43 billion backlog and guiding for ~50% revenue growth and ~75% EPS growth.

Rationale

The analyst_upside_pct of 14.5% is credible given 100% revision agreement, a 63.99% earnings surprise, $7.14 in upward 90-day EPS revisions, and momentum acceleration of 53%, all anchored by concrete backlog and guidance rather than pure sentiment.

Material risks

  • 1Gross margin compression (~80bps already realized) from competitive pricing in client and traditional server segments could intensify as hyperscalers commoditize AI rack integration, eroding the EPS leverage that justifies current targets.
  • 2Concentration risk in the Nvidia partnership means any supply disruption, Nvidia pricing shift, or enterprise AI capex pause could rapidly deflate the $43 billion backlog and invalidate the forward EPS trajectory underpinning analyst targets.

AI verdict council

Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.

OpenAI
Proceed
Claude
Proceed
Gemini
Error