Analysts on Wall Street are sticking by Dell Technologies even as the stock pulls back following a weak third-quarter outlook. Dell reported second-quarter results on Thursday that surpassed analyst estimates, but its outlook for the current quarter soured investor sentiment and kept shares under pressure. Third-quarter earnings are estimated to be $2.45 per share, 10 cents shy of the $2.55 per share LSEG estimate. DELL 5D mountain Dell Technologies stock this week. Shares of Dell closed down 8.9% on Friday. But analysts think the pullback is overdone and that Dell's potential growth trajectory can outweigh the near-term concerns thanks to artificial intelligence. Here's a look at what analysts said after Dell's earnings. Bank of America calls Dell an 'AI server juggernaut' Analyst Wamsi Mohan raised his price target to $167 from $165 and reiterated a buy rating on the stock. That's nearly 37% above where the stock is trading. "We remain bullish on shares of DELL where we expect long term EPS growth of 15% over the next five years supported by strong growth in AI servers," the analyst said. "The qtr and FY guide re-affirmed our confidence in Dell continuing to drive upside to AI server consensus rev ests." JPMorgan reiterates overweight rating The firm's $145 price target implies about 19% upside from Friday's close of $122.15. "We rate shares of DELL Overweight as we are more positively inclined toward the AI-driven compute investment cycle, which should benefit branded server companies, even as the drivers for the remaining businesses are more mixed being subject to the macro backdrop," analyst Samik Chatterjee said. "While DELL is unlikely to be perceived as a primary beneficiary of an AI investment cycle, we expect all server companies to benefit in relation to sale of higher-end servers with ASP [application service provider] and (operating) margin upside," the analyst added. Goldman Sachs maintains buy rating Analyst Michael Ng's $150 price target implies about 23% upside. "The company's AI pipeline continues to represent multiples of its backlog and represents a mix of Blackwell and older chip generations. ISG [infrastructure solutions group] margins missed in the quarter (8.8% v. GS/consensus 9.6%/9.4%), in part due to higher mix of lower-margin AI server revenue, competitive pricing, as well as one-time costs incurred in F2Q26 associated with supply chain resiliency and expediting GB200 deployments," Ng said. Morgan Stanley reiterates overweight rating The firm's $144 price target calls for about 18% upside. "[W]e'd still characterize the quarter as illustrating progress, with AI servers the clear standout, and DELL highlighting emerging strength in enterprise AI demand, double digit growth in traditional servers (in F2Q and FY26), and double digit growth in their midrange storage product and entire all-flash portfolio," analyst Erik Woodring said." "Yes, margins face pressure from increasing AI server mix - this should not come as a surprise (and yet the stock is down 5% as a result) - but that is set to reverse in 2H, and if DELL can improve execution in US large enterprise and the overall PC business, then the story should get cleaner from here," the analyst added.
