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JPMorgan raised its Dell Technologies (DELL) price target to $280 from $205 on easing memory cost headwinds and accelerating AI server earnings power.

Dell’s $43 billion AI backlog and $50 billion FY2027 server revenue guidance position the company for durable multi-quarter earnings growth despite valuation concerns.

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Dell Technologies (NYSE:DELL) just got another bullish nod from Wall Street. JPMorgan raised its price target on Dell Technologies to $280 from $205, keeping an Overweight rating, arguing that memory cost headwinds have eased even as the AI server franchise continues to scale.

The firm cites the reversal of memory related concerns for the recent rally in the IT hardware group and now sees a clear runway for upward earnings revisions. For long-term investors, the call reinforces a thesis that has been building all spring: Dell's AI server backlog is translating into durable, multi-quarter earnings power.

DELL shares last traded at $241, after running up 117% over the past year.

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Ticker

Company

Firm

Action

Old Rating

New Rating

Old Target

New Target

DELL

Dell Technologies

JPMorgan

Price Target Raise

Overweight

Overweight

$205

$280

JPMorgan's thesis hinges on two shifts. First, the memory cost overhang that pressured server gross margins earlier this year has stabilized, removing a key bear argument. Second, heading into the earnings print, JPMorgan is positive on Dell Technologies, expecting estimate revisions to reinforce the medium-term growth outlook.

The firm expects shares to return to valuation multiples "more appropriate for the medium-term earnings growth outlook." That framing matters: it positions for sustained, multi-quarter earnings power.

Dell's Q4 FY2026 results illustrate the AI tailwind. Revenue reached $33.38 billion, up 40% year over year (YoY), while AI-optimized server revenue hit $8.95 billion, up 342% YoY. The company exited the year with a $43 billion AI backlog and guided FY2027 AI server revenue near $50 billion.

Dell maintains deep partnerships with major chipmakers for AI silicon. The trade-off is mix-driven margin pressure, with Q4 GAAP gross margin at 20% versus 24% a year earlier.

Dell trades at a forward P/E ratio of 20x, with a 52-week range of $104.79 to $263.99. JPMorgan's $280 target sits above the prior Street consensus of $192.91, signaling that estimates likely need to move higher.

The call follows Mizuho's recent hike to $300 from $260 and arrives after UBS downgraded DELL to Neutral, citing valuation following a 170% one-year rally. The divergence captures the real tension: the bulls see earnings power expanding, the bears see a stretched multiple.

For prudent investors, the JPMorgan price target raise to $280 validates the AI server thesis without ignoring valuation risk. DELL stock has delivered outsized gains, and competitive pressure from Hewlett Packard Enterprise and Super Micro Computer remains real.

Position sizing matters here. The analyst upgrade narrative is constructive, yet entries near recent highs warrant patience. Keep an eye on Dell's upcoming earnings report for confirmation that AI orders and margins are tracking guidance.

For long-term portfolios, Dell Technologies stock offers exposure to the AI infrastructure buildout backed by tangible cash flow and capital returns. The revised outlook warrants a closer look, even as near-term volatility remains a real risk.

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