Dell Technologies' (DELL) Long-Term Growth Potential: Raymond James' Bullish Outlook and Strategic Momentum Post-Recent Analyst Meeting

Raymond James analyst Simon Leopold has reaffirmed a bold "Outperform" rating for Dell Technologies (DELL) with a $152.00 price target, underscoring the company's transformative momentum in the AI infrastructure sector. Following the Q3 2025 securities analyst meeting in New York, Dell revealed that AI-related activity has surpassed internal forecasts, prompting a significant upward revision of its long-term growth targets. This strategic shift positions Dell as a pivotal player in the global AI hardware supply chain, with analysts and management alike emphasizing the durability of this growth trajectory.

AI Infrastructure Momentum: A Catalyst for Growth

Dell's Infrastructure Solutions Group (ISG) is at the forefront of this transformation. According to a report by Investing.com, the company now projects ISG revenue growth of 11-14% annually through fiscal 2030, up from a prior range of 6-8% Dell stock gains as Raymond James reiterates Outperform rating^[2]. This acceleration is fueled by surging demand for AI servers, with Dell already shipping billions of dollars in AI-related infrastructure and targeting a $20 billion annual run-rate by 2026 Dell stock gains as Raymond James reiterates Outperform rating^[2]Dell bets big on an AI infrastructure payoff-new four-year revenue ...^[3]. Raymond James highlighted that enterprise adoption is shifting from training workloads to inferencing and real-world applications, a trend expected to sustain Dell's growth beyond 2025 Dell Stock Jumps As AI Business Lifts Long-Term Growth Outlook^[4].

Revised Financial Projections: Revenue and Earnings Reimagined

Dell's updated long-term outlook reflects this strategic pivot. The company now anticipates 7-9% annual revenue growth through fiscal 2030, a stark increase from the previous 3-4% range Dell stock gains as Raymond James reiterates Outperform rating^[2]Dell Stock Jumps As AI Business Lifts Long-Term Growth Outlook^[4]. Complementing this, adjusted earnings per share (EPS) are projected to grow at a rate of 15% or better annually, nearly double the earlier 8% target Dell stock gains as Raymond James reiterates Outperform rating^[2]. As stated by Raymond James in a Yahoo Finance report, these revisions are driven by "sustained infrastructure sales tied to generative AI workloads," which have already outpaced initial expectations Raymond James Stays Bullish on Dell (DELL) Following Upbeat ...^[1].

Strategic Business Unit Performance: ISG vs. CSG

While the ISG's AI-driven growth is the star of the show, the Client Solutions Group (CSG) remains a stable but less dynamic component of Dell's portfolio. The CSG's outlook has remained unchanged, reflecting the cyclical nature of consumer and commercial PC demand Dell stock gains as Raymond James reiterates Outperform rating^[2]. However, the ISG's 11-14% growth trajectory underscores Dell's ability to capitalize on structural shifts in enterprise computing, particularly as AI adoption accelerates across industries.

Margin Considerations and Valuation Realities

Despite the optimism, Raymond James cautioned that Dell's modest gross and operating margins may limit valuation gains compared to peers in IT and networking Raymond James Stays Bullish on Dell (DELL) Following Upbeat ...^[1]. While the company's AI infrastructure business is expanding rapidly, its traditional hardware margins remain under pressure from competitive pricing and supply chain dynamics. This suggests that investors should focus on Dell's revenue growth and market share gains rather than immediate margin expansion.

Dividend Commitment: A Signal of Confidence

Dell has also committed to raising its quarterly dividend by at least 10% annually through fiscal 2030 Dell stock gains as Raymond James reiterates Outperform rating^[2]Dell Stock Jumps As AI Business Lifts Long-Term Growth Outlook^[4]. This pledge aligns with the company's broader strategy to reward shareholders amid its reinvention as an AI infrastructure leader. Such a commitment could further enhance investor confidence, particularly as the stock trades at a discount to peers with less robust growth profiles.

Conclusion: A Compelling Long-Term Case

Raymond James' bullish stance on Dell is underpinned by a combination of structural AI demand, strategic business unit performance, and a disciplined capital allocation approach. While margin constraints and competitive pressures persist, the company's revised growth targets and $20 billion AI infrastructure run-rate by 2026 present a compelling case for long-term investors. As enterprises increasingly prioritize AI-driven innovation, Dell's position as a trusted infrastructure provider could translate into sustained revenue and earnings growth, making it a standout play in the evolving tech landscape.