Dell Stock Could Be an Under-the-Radar AI Winner. Here’s My 2027 Price Prediction

Dell Technologies (NYSE:DELL | DELL Price Prediction) has become one of the biggest builders of AI infrastructure. In its fiscal second quarter, Dell booked a record $60.9 billion in AI server orders and ended the quarter with a $95 billion backlog.

Jeff Clarke, Dell’s vice chairman and chief operating officer, described the shift this way: “IT environments have shifted from cost centers to value drivers that fuel growth and competitive advantage, and customers are investing accordingly.”

Shares are up 313% year-to-date at $514.66, even after a 10.1% drop today that Barron’s called the stock’s worst day in more than a year. From that lower price, here is what Dell needs to do to hit $800 per share in 2027.

Wall Street Sees More Upside as Estimates Keep Climbing

Analysts’ average 1-year target is $589.96, implying 15% upside. Coverage leans bullish, with 6 Strong Buy ratings, 14 Buys, 9 Holds and zero Sells.

Estimates are moving fast. The consensus for fiscal 2027 (ending January 2027) EPS stands at $25.8976, compared with $18.3860 90 days ago. Over the past 30 days, analysts made 23 upward revisions and zero downward ones.

Dell has also beaten EPS estimates for 5 consecutive quarters, most recently posting $7.04 against a $4.8994 estimate. That track record suggests actual results could keep running ahead of forecasts.

Can Dell Really Hit $800? Let’s Do the Math

At today’s price, Dell trades at roughly 20x fiscal 2027 earnings estimates, below the S&P 500’s forward multiple of about 21-23x. At $800, shares would trade at 31x this year’s estimate and 32x the fiscal 2028 consensus of $24.6637.

That premium is defensible for a business guiding to $74 billion in AI server revenue (up 200%) and non-GAAP EPS of $25.50 (up 148%). The fiscal 2028 consensus comes from just 8 analysts, and the high estimate already sits at $30.19.

What Could Push Dell to $800?

• Backlog conversion: Management said the AI pipeline remains multiples of backlog, with $19 billion in AI server revenue guided for the third quarter.
• A server refresh cycle: Traditional servers rose 122%, and most of the installed base still runs 14th-generation or older hardware. New 18G servers offer consolidation rates of 12 to 14 servers.
• Margin expansion: ISG operating margin reached 15% versus 8.8% a year ago, and operating expenses are heading toward 8% of revenue, the lowest in Dell’s 42-year history.
• Industry tailwinds: Dell expects AI to make up 75% of all data center demand by 2030. The Department of Energy projects data centers could account for up to 12% of U.S. electricity demand by 2028.
• Capital returns: Dell returned a record $4.3B to shareholders in the second quarter.

Past Returns Show $800 Is Within Reach

Reaching $800 requires a 55% gain. Adjusted price data going back to 2019 shows Dell has cleared that bar before.

Shares rose 96% in 2023 and are up 313% in 2026. They came close in 2024 (53%) and 2021 (51%). Dell is a much larger company now, so repeating those gains is harder, but its history shows it can happen.

$800 Is a Stretch, but Here’s Why It’s Possible

Hitting $800 would take a 55% gain. Wall Street already sees upside, estimates are climbing and the beat streak is intact.

Hurdles remain: management said DRAM and NAND supply remain tight, and free cash flow fell 47% to $986M last quarter. If the backlog converts, margins hold and the market cooperates, $800 is within reach. Returns at this level are rare, and this is the blueprint for how Dell could see outsized returns in 2027.

Contact [email protected] for any questions or corrections.