NEW YORK — Dell Technologies Inc. shares rose more than 15% on May 22, 2026, reaching around $292.41 in morning trading as multiple analysts raised price targets amid continued demand for AI-optimized servers.
The Round Rock, Texas-based company has seen its stock climb significantly in 2026, driven by growth in its Infrastructure Solutions Group. Dell reported fiscal 2026 full-year revenue of $113.5 billion, up 19% year-over-year, with servers and networking contributing substantially.
Recent Analyst Actions
Wells Fargo maintained an Overweight rating on May 22 and raised its price target. Other firms, including Morgan Stanley, BofA Securities, JPMorgan, Citi and Mizuho, have issued upward revisions in recent weeks. Morgan Stanley raised its target to $170 from $110. BofA increased to $280 from $246. JPMorgan lifted to $280 from $205. Citi moved to $290 from $235, and Mizuho to $300 from $260.
Consensus ratings stand at Moderate Buy or Buy, with average 12-month price targets ranging from approximately $203 to $228 across 20-29 analysts, though some individual targets reach $300.
Financial Performance
Dell reported first-quarter fiscal 2026 revenue of $23.4 billion, up 5% year-over-year. Non-GAAP diluted earnings per share were $1.55, up 17%. Servers and networking revenue hit a first-quarter record of $6.3 billion, up 16%. The company generated $12.1 billion in AI orders in the quarter, leaving a $14.4 billion AI backlog.
For the full fiscal year 2026, Dell guided revenue between $101 billion and $105 billion. It raised its full-year non-GAAP EPS outlook to $9.40.
Infrastructure Solutions Group revenue reached $10.3 billion in Q1, up 12%. Client Solutions Group revenue was $12.5 billion, up 5%. The company reported record Q1 cash flow from operations of $2.8 billion.
AI and Product Developments
Dell has positioned itself as a key partner in AI infrastructure, collaborating closely with Nvidia. The company introduced the PowerStore Elite storage platform and Dell Deskside Agentic AI solutions in May 2026. It added 1,000 new enterprise AI customers recently.
CEO Michael Dell and Nvidia CEO Jensen Huang discussed agentic AI, memory demand and market opportunities at Dell Technologies World in Las Vegas in mid-May.
Dell maintains a strong order book with $43 billion in server backlog reported in recent updates. AI-optimized server revenue showed triple-digit growth in prior quarters.
Market Position and Risks
Dell operates in a competitive environment with exposure to PC markets through its Client Solutions Group and high-growth AI server demand. The company has faced margin pressures from competitive pricing and memory costs.
It announced AI-driven layoffs in March 2026 as part of operational adjustments. The stock has shown volatility, trading in a 52-week range that includes lows near $106 and highs approaching recent levels.
Upcoming earnings are scheduled for May 28, 2026, with analysts expecting significant year-over-year EPS growth. Options data suggests potential movement of around 11% following the report.
Broader Context
Dell has benefited from sector tailwinds in AI infrastructure. President Donald Trump previously commented positively on Dell products, contributing to earlier stock movement in May. The company continues to invest in storage, networking and hybrid solutions.
Market capitalization stood near $177 billion as of May 22. Shares have posted strong year-to-date gains, reflecting investor interest in its AI server backlog and partnerships.
Dell ended fiscal 2026 with record operating cash flow of $11.2 billion. The company has highlighted differentiation in AI-optimized systems and full-stack offerings.
Analysts note the transition beyond traditional PCs, with infrastructure now a major growth driver. Storage revenue reached $4.0 billion in Q1 fiscal 2026.
Valuation and Outlook
The stock trades near the upper end of recent ranges. Forward estimates project continued revenue and earnings expansion tied to AI adoption. Dell has maintained guidance for sequential growth in key segments.
The company faces typical industry risks, including supply chain dynamics for components like memory and GPUs, geopolitical factors affecting China exposure, and competition from other server providers.
Dell continues quarterly product launches and ecosystem partnerships to address enterprise and research demand for AI capabilities. Further details on Q2 performance and full-year execution will come with the May 28 report.
This report is based on company financial releases, analyst notes and market data available through May 22, 2026. Stock prices and projections remain subject to market conditions and future results.
