Dell Technologies set to deliver beat and raise for Q1, says Bank of America

Dell Technologies Inc (NASDAQ:DELL) volition study its archetypal 4th results adjacent week, with Bank of America analysts forecasting the institution volition surpass Wall Street expectations connected some gross and net portion raising its full-year outlook.

The brokerage reiterated its ‘Buy’ standing connected Dell shares and accrued its terms people to $280 from $246, citing sustained request for artificial quality servers, stronger-than-expected PC trends successful the archetypal fractional of the year, and improving infrastructure solutions revenue.

Shares of Dell traded up 4% astatine $245 connected Wednesday, up astir 95% truthful acold successful 2026.

Bank of America said it expects Dell to present first-quarter gross and net per stock supra statement estimates, portion besides issuing second-quarter guidance up of marketplace expectations.

The steadfast projects Q2 gross successful a scope of $37 cardinal to $40 billion, compared with Street estimates of astir $35 billion.

Earnings per stock are expected betwixt $2.85 and $3.05, versus statement expectations adjacent $2.87.

For the afloat fiscal year, the analysts expect Dell to rise its gross outlook to betwixt $143 cardinal and $147 billion. They besides forecast adjusted net per stock guidance to summation to a scope of $12.85 to $13.25, reflecting stronger first-quarter results and improved near-term guidance.

The analysts pointed to continued momentum successful Dell’s Infrastructure Solutions Group, peculiarly successful AI servers. Bank of America maintained its estimation for fiscal 2027 AI server gross astatine $60 billion, supra Dell’s ain guidance of $50 cardinal and up of broader marketplace expectations.

For the archetypal quarter, the steadfast expects AI server gross of astir $15 billion, with orders reaching $20 cardinal and backlog lasting adjacent $49 billion.

They besides highlighted increasing request from tier-two unreality work providers, driven by expanding concern successful AI inferencing and CPU-intensive hardware. However, the analysts cautioned that endeavor infrastructure spending could mean successful the 2nd fractional of the twelvemonth arsenic pricing increases measurement connected demand.

In Dell’s Client Solutions Group, which includes PCs, Bank of America said request successful the archetypal fractional of the twelvemonth has been stronger than antecedently anticipated, apt owed successful portion to customers accelerating purchases. The steadfast present expects first-half lawsuit gross maturation of 20%, supported by higher mean selling prices and humble portion growth.

Still, the bank’s analysts expect PC request to dilatory successful the 2nd half, forecasting a 12% gross diminution for the play arsenic portion volumes weaken.

Bank of America raised its semipermanent estimates for Dell, expanding its fiscal 2027 gross forecast to $152 cardinal from $147 cardinal and its net estimation to $13.22 per stock from $13.04. The analysts explained that the higher valuation reflects continued execution and what they described arsenic the “early innings” of endeavor AI adoption.