Eben@CANSLIM ResearchBernstein has reiterated its Outperform rating on Dell Technologies Inc (NYSE: DELL) with a $650 price target, implying roughly 24% upside from the $524.14 close on 4 September 2026. The call follows a management webinar held the day after Dell reported what the broker calls another monster quarter, covering AI server demand, agentic AI adoption, memory supply constraints and storage margins. Bernstein values the stock at 22x FY28E EPS, or 19x FY29E EPS.
Key Takeaways
- Bernstein reiterated an Outperform rating on Dell Technologies (DELL) with a $650 price target, based on 22x FY28E EPS or 19x FY29E EPS, against a 4 September 2026 close of $524.14.
- Dell booked approximately $61bn of new AI server orders in the quarter, shipped $16.4bn, and ended with a $95bn backlog; its pipeline of potential opportunities over the next five quarters doubled sequentially.
- Dell has deployed roughly 6,500 enterprise AI factories, up more than 60% in six months, adding about 3,300 customers over three quarters — matching the total added in the preceding eight quarters.
- Bernstein forecasts Dell FY27E revenue of $195,063m and adjusted EPS of $25.88, rising to $242,721m and $29.63 in FY28E, a 69.2% EPS CAGR.
- Management sees DRAM and NAND supply worsening next year, but states the constraint is already reflected in guidance, which Bernstein regards as conservative and open to upside from additional supply.
What Bernstein’s Dell Webinar Note Says
In a report titled “DELL: What we learned from our Webinar with management,” Bernstein analysts Mark C. Newman, Phoebe Sun and Viola Chen summarise a group webinar held with Dell’s President of Infrastructure Solutions Group and Dell’s CFO the day after earnings. The note, first published 8 September 2026, reiterates the Outperform rating and $650 price target on Dell Technologies Inc (DELL).
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