Shares of Dell Technologies (DELL) slipped 3.39% on August 28 despite positive analyst coverage from J.P. Morgan just days before the company reports its Q2 financial results on September 1.

J.P. Morgan analyst Joseph Cardoso reaffirmed his Buy rating on Dell shares and set a $565 price objective. In his research note, Cardoso suggested the technology giant may once again raise its Fiscal Year 2027 revenue outlook at the upcoming earnings announcement. That would follow a pattern already established this year: Dell implemented a substantial upward revision to its guidance at its last quarterly report, and the company currently projects 47% revenue growth for this fiscal year. While that already represents robust expansion, Cardoso's analysis indicates actual performance trends could prompt executives to deliver another upward revision to guidance.

AI-Server Demand Driving the Optimistic View

The bullish thesis centers primarily on artificial intelligence infrastructure demand. According to research firm 650 Group, the AI-server segment is now projected to grow by more than 80% year-over-year throughout 2026 — a substantial increase from the 64% growth rate the firm forecast just 90 days earlier.

The rapid acceleration in forecasts signals that demand is significantly outpacing earlier industry predictions. As a major player in the segment, Dell stands to benefit directly from strengthening AI-server sales. AI servers have become a central growth engine for Dell's Infrastructure Solutions Group in recent quarters, which is why market-level forecasts for the segment feed so directly into expectations for the company's results and guidance.

Conventional Server Demand Adding to the Positive Projections

Artificial intelligence is not the only catalyst behind the upbeat outlook. The traditional server market is also showing stronger momentum. Current projections for total server market growth in 2026 now exceed 30%, up considerably from the earlier 22% estimate.

According to J.P. Morgan's research, recent quarterly results across the technology sector combined with proprietary channel intelligence support this upgraded outlook, reinforcing the firm's view that Dell's existing guidance may prove conservative.

Cardoso notes that any anticipated guidance increase likely will not match the magnitude of the previous adjustment, since the company already implemented a substantial upward revision at its last quarterly report. Nevertheless, the trajectory remains positive.

For the upcoming quarter, the Street consensus calls for adjusted earnings of $4.91 per share and GAAP earnings of $4.43 per share. Revenue projections center around $44.5 billion, which would represent a 51% increase from the $29.78 billion recorded in the year-ago quarter.

Wall Street's Perspective on DELL Stock

Dell has surpassed earnings expectations in five of the past six reporting periods. The single miss came in the quarter concluded in April 2025, when the company delivered $1.55 per share against the $1.69 consensus estimate.

The most recent quarterly report, for the period ending April 2026, showed exceptional outperformance: Dell delivered $4.86 per share versus the $2.94 Street estimate, a 65% positive surprise. That track record helps explain the sustained bullish sentiment surrounding the stock. It also raises the bar for September 1: with expectations already elevated, the market reaction will hinge on whether Dell's results and any updated guidance keep pace with the consensus reflected in those estimates.

Among Wall Street analysts, DELL stock carries a Moderate Buy rating, based on 12 Buy recommendations, five Hold ratings, and zero Sell ratings issued over the past three months. The consensus 12-month price objective stands at $519.36, implying approximately 14% upside from current trading levels, while the median price target of $500 represents roughly 9.6% upside from the most recent closing price of $456.24.

Dell Technologies is scheduled to release its Q2 financial results on September 1, covering the fiscal period that ended July 31, 2026.

Source: Blockonomi