Prediction: Dell Stock Will Trade at $600 on This Date
Dell stock has surged over 260% this year on the back of a booming AI server business, but a specific set of conditions must align before shares reach the next major milestone. Here is what the numbers actually require.
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Dell Technologies (NYSE:DELL | DELL Price Prediction) has quietly become one of the most explosive AI infrastructure trades of the year. Shares are up 262% year to date, and the AI server business just did $16.132 billion in a single quarter.
Yet at $451.50, the stock still trades below the analyst consensus target. Can DELL hit $600 by 2027? Here is what has to happen.
Why DELL Cooled Off After a Historic Run
DELL is off 3.66% over the past week and sits roughly 1% below its 52-week high of $514.
After such a run, profit-taking was inevitable. Two factors weigh on sentiment. First, gross margin compressed to 17.8% last quarter from 21.1% a year ago as AI server mix crowds out higher-margin storage revenue.
Second, with a beta of 1.401, DELL trades like a leveraged bet on AI capex, and every whisper about memory pricing or hyperscaler pauses hits hard. This volatile name has already gained 249.05% in twelve months.
Wall Street Sees 12.7% Upside. My Model Says 16.6%
The Street is cautiously bullish. The consensus analyst target sits at $508.96, backed by 5 strong buys, 14 buys, and 8 holds, with zero sell ratings. Our internal model projects a one-year base case of $526.57 and a bull case of $553.89, with a confidence score of 0.9.
Analyst bullishness sits at 70%, and earnings growth contribution came in at 2.825, reflecting an EPS trajectory most sell-side models have not caught up to. The Street anchors on FY26 numbers. That is the mistake.
Path to $600 Per Share
Reaching $600 from today’s price of $451.50 would require a gain of 32.9%. With forward EPS of $18.20, a price of $600 implies a forward P/E of 33x. Our base case of $526.57 already implies 33x, meaning $600 requires essentially no additional multiple expansion beyond what our model builds in.
The lift comes from EPS. Dell guided FY27 non-GAAP EPS to $17.90 at the midpoint, but that guide was raised by $5 in a single quarter. AI orders totaled $24.4 billion in Q1, backlog exited at $51.3 billion, and the customer base grew over 50% in the last six months.
COO Jeff Clark put it plainly: “demand is not slowing but accelerating and meaningfully outpacing supply.” If Dell prints EPS closer to $20 into FY28 on continued backlog conversion, the $600 handle follows naturally.
The risk: memory and CPU supply constraints slip guidance out a quarter, breaking momentum.
Where DELL Trades Today vs Its Earnings Power
At $451.50, DELL trades at roughly 25x forward earnings. That is a premium to Dell’s historical multiple but well below AI-adjacent peers, against a stock that has returned 865.3% over five years. Shares sit near the 52-week high of $514, far from the low of $109.70.
With FY27 revenue guided to $167 billion at the midpoint and AI server revenue at $60 billion, the multiple looks reasonable relative to growth trajectory.
Is $600 Realistic? My Verdict
Getting to $600 requires a 32.9% gain. It is a stretch for the next twelve months but reachable on a longer timeline.
Three things need to go right: AI backlog must keep converting, memory and CPU supply must loosen enough to protect margin, and Dell needs at least one more raised guide to force sell-side upgrades. A broad AI capex pause from hyperscalers derails it.
Dell is one way to play the data-center buildout, but the power, cooling, and networking suppliers behind it are another set worth knowing (we profiled seven of them in a free AI infrastructure report). We’ve outlined the blueprint for how Dell Technologies could reach $600 in 2027.
Contact [email protected] for any questions or corrections.
Vandita Jadeja is a financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis. She has contributed to several publications, including the Joy Wallet, Benzinga, The Motley Fool and InvestorPlace.
