Citi Tweaks Dell Stock Price Target For Rest Of 2026
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Citi Tweaks Dell Stock Price Target For Rest Of 2026 Moz Farooque ACCA Wed, September 2, 2026 at 11:42 AM EDT 2 min read C MS DELL This article first appeared on GuruFocus . Dell Technologies ( NYSE:DELL ) is emerging as one of the clearest hardware beneficiaries of the AI infrastructure boom, with second-quarter results strong enough to trigger major price-target increases from Morgan Stanley ( NYSE:MS ), Goldman Sachs and Citigroup . Revenue surged 59% year over year to $47 billion , while AI-server sales doubled to $16.4 billion , reinforcing the view that demand for accelerated computing remains far from exhausted. Warning! GuruFocus has detected 4 Warning Signs with DELL. Is DELL fairly valued? Test your thesis with our free DCF calculator. Dell sells PCs, traditional servers, storage systems and enterprise infrastructure, but AI servers have rapidly become a major growth engine. The company assembles systems packed with high-end accelerators and networking equipment for hyperscalers, enterprises and other customers building AI capacity. The scale of the shift is striking. Dell booked $60.9 billion of AI-server orders , and Morgan Stanley noted that just four years ago the company generated essentially no AI-related revenue. Dell now expects roughly $74 billion in AI-server sales , giving investors direct exposure to the broader data-center buildout beyond chipmakers themselves. Morgan Stanley raised its price target to $499 from $434 , arguing that continued tight supply and strong execution could keep producing blowout quarters. The bank also pointed to Dell's supply-chain management as a competitive advantage and said traditional server demand remains resilient despite significantly higher prices. Goldman Sachs lifted its target to $570 from $510 , while Citi went even further, raising its target to $600 from $515 . Citi said, Guidance embeds supply constraints leaving potential for upside, adding that infrastructure modernization and enterprise AI adoption should sustain momentum. The biggest near-term question is whether supply constraints remain a tailwind rather than becoming a bottleneck. Investors should watch AI-server backlog, revenue conversion, operating margins and component availability . Continued order growth alongside stronger margins would support the banks' higher targets. But if supply loosens faster than expected, pricing power weakens, or hyperscaler spending slows, the premium being assigned to Dell's AI business could compress quickly. For now, Wall Street sees Dell's hardware position as increasingly central to the AI buildout.
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