NEW YORK — Dell Technologies shares have delivered exceptional returns in 2026, surging more than 230 percent year-to-date amid explosive demand for AI-optimized servers, prompting analysts to weigh whether the momentum supports buying the stock or signals caution at current levels near $420.

The company reported record fiscal first-quarter 2027 results in late May, with revenue reaching $43.84 billion, an 88 percent increase year-over-year. AI server revenue alone jumped 757 percent to $16.1 billion, while the firm booked $24.4 billion in AI orders and exited the quarter with a record $51.3 billion AI backlog. Management raised full-year fiscal 2027 revenue guidance to between $165 billion and $169 billion, reflecting sustained hyperscaler and enterprise demand.

Wall Street has responded with widespread optimism. Consensus among roughly 30 analysts stands at Moderate Buy, with an average 12-month price target around $421 to $450. Some firms have set targets as high as $700, citing Dell's positioning in the AI infrastructure buildout alongside partners like Nvidia.

AI Momentum Reshapes Dell's Business

Dell's Infrastructure Solutions Group has become the primary growth engine. AI-optimized servers now represent a substantial portion of revenue, driven by demand for high-performance computing in data centers. The company has expanded its customer base for AI solutions to over 5,000, up more than 50 percent in six months.

Chief Operating Officer Jeffrey Clarke noted during the earnings call that supply, rather than........

© International Business Times