Goldman Sachs Raises Dell Price Target to $215: Is This AI Server Powerhouse Still the Best Value in Tech?

Dell Technologies (NYSE:DELL) stock is getting a raised price target from Goldman Sachs, which lifted its target on Dell to $215 from $195 while maintaining a Buy rating. The move signals Wall Street sees more runway ahead even after DELL stock has already surged 49% year to date. For long-term investors, the revised target reflects conviction on AI infrastructure demand that shows no sign of slowing.

Goldman acknowledges the stock has climbed sharply, but argues that Dell remains well positioned for further upside to earnings, driven by AI server demand and a relative advantage in securing DRAM supply. That supply-chain edge matters in a market where AI infrastructure buildouts are constrained by component availability. With DELL stock trading around $187.70 today, Goldman’s new target implies meaningful additional upside.

The Analyst’s Case

Goldman’s rationale centers on elevated expectations following strong stock performance not being enough to derail the bull thesis. Dell’s AI server business is scaling faster than consensus estimates. The firm’s DRAM supply positioning gives it a structural edge over competitors fulfilling AI server orders.

The numbers back that view. Dell reported AI-optimized server revenue of $8.95 billion in Q4 FY26, up 342% year over year, while its AI backlog entering FY27 hit a record $43 billion. That backlog provides unusual earnings visibility heading into the next fiscal year.

Company Snapshot

Dell Technologies designs, develops, and sells IT solutions globally through two primary segments: Infrastructure Solutions Group and Client Solutions Group. Its Infrastructure Solutions Group generated $19.6 billion in Q4 FY26 revenue, up 73% year over year, making it the engine of Dell’s transformation into an AI infrastructure powerhouse.

Dell’s full-year FY26 revenue reached $113.54 billion, up 19% year over year, with non-GAAP EPS of $10.30. For FY27, Dell guided for revenue of $138 billion to $142 billion and AI-optimized server revenue of approximately $50 billion.

Why the Move Matters Now

At a forward P/E ratio of 14x and a PEG ratio of 0.74, Dell’s valuation looks undemanding relative to its growth trajectory. That’s the “best value in tech” argument: a company guiding for 25% EPS growth in FY27 trading at a discount to the broader market’s earnings multiple.

Analyst consensus is broadly supportive for DELL stock, with 19 buy or strong buy ratings versus just one sell rating across the Street. Goldman’s raised target sits above consensus, suggesting it sees a differentiated case for Dell’s AI positioning that others haven’t fully priced in. Investors watching Wall Street analyst divergence on major stocks will find Dell’s near-unanimous bullish tilt notable.

What It Means for Your Portfolio

For retirement-focused investors, Dell’s combination of a 20% dividend increase and a $10 billion share repurchase authorization increase signals management confidence in sustained cash generation. The company returned a record $7.5 billion to shareholders in FY26, a meaningful signal for income-oriented investors.

Margin compression is a real risk to monitor. Dell’s GAAP gross margin declined to 20% in Q4 FY26 from 24% a year earlier as the AI server mix weighs on profitability. If you believe AI infrastructure spending remains durable and Dell’s DRAM supply advantage holds, Goldman’s case is compelling. However, if you’re skeptical that the AI buildout can sustain this pace, Dell’s margin pressure story deserves more weight in your calculus.