Dell Raises Full-Year Outlook, Analysts Boost Stock Target Amid AI Growth

Dell Technologies reported Q2 earnings and revenue that beat Wall Street's forecast, but issued soft earnings outlook for Q3. Despite this, several analysts have raised their stock target on Dell, with UBS raising its price target to $155 from $145 and reiterating a buy rating. Dell is a major customer and partner of AI chipmaker Nvidia, building AI servers using Nvidia's chips and selling them to other companies. The company has raised its full-year outlook, projecting revenue of $107 billion and diluted earnings per share of $9.55.

Dell Technologies (DELL) reported its second-quarter (Q2) earnings and revenue that surpassed Wall Street's forecasts. However, the company's guidance for the third quarter (Q3) fell short of expectations, leading to a drop in its stock price. Despite this, several analysts have raised their stock targets on Dell, with UBS increasing its price target to $155 from $145 and maintaining a buy rating.

In Q2, Dell reported revenue of $29.78 billion, up 19% year-over-year, and adjusted earnings per share (EPS) of $2.32, beating analyst estimates. The company's Servers and Networking segment, which includes AI servers, saw a significant 69% increase in revenue to $12.9 billion. However, the storage segment declined 3% to $3.86 billion, missing estimates [1].

Dell has been a major customer and partner of AI chipmaker Nvidia, building AI servers using Nvidia's chips and selling them to other companies. The company has raised its full-year outlook, projecting revenue of $107 billion and diluted EPS of $9.55. For Q3, Dell expects revenue to be between $26.5 billion and $27.5 billion and EPS of $2.45 per share, both falling short of estimates [2].

Despite the near-term challenges, analysts remain optimistic about Dell's long-term prospects. UBS cited strong AI server revenue and Dell's strategic alignment with the AI infrastructure market, which is projected to grow at a 55% compound annual growth rate (CAGR) to reach $252 billion by 2025 and potentially $1.6 trillion by 2032 [3].

References:
[1] https://www.cnbc.com/2025/08/28/dell-earnings-report-q2-2026.html
[2] https://www.benzinga.com/markets/earnings/25/08/47400758/dell-q2-earnings-revenue-eps-beat-estimates-as-ai-solutions-shipments-boom
[3] https://www.investing.com/news/analyst-ratings/dell-stock-price-target-raised-to-155-from-145-at-ubs-on-ai-momentum-93CH-4216085