Dell’s Stock Price (NYSE: DELL) Rally’s 60% off April Lows, Earnings on Deck

Dell Technologies Inc. (NYSE: DELL) is set to release earnings after today’s market close, with the company making an impressive turnaround in recent months. The stock, currently trading at $116.35 in the pre-market, up 2.27% through the early session, appears set to return neutral on the year, having started out with the bears in charge.

Recent weeks have shown a shifting tide of sentiment for Dell's stock, driven by aggressive moves in artificial intelligence (AI) infrastructure, and a wave of analyst upgrades.

Dell’s performance over the past month has been nothing short of stellar, with the stock surging more than 21.32%, and bringing the rally off April lows to 60%. This rally is particularly notable when contrasted with its 36.52% decline over the past year, highlighting a dramatic turnaround in sentiment.

Analysts are looking for Dell to come in with revenue of $23.19B billion, marking a 4.27% year-over-year increase. On the bottom line, Dell is expected to report earnings per share of $1.69, a significant jump on the $1.27 reported in the same quarter last year.

A pivotal factor behind Dell’s recent stock surge is its aggressive expansion in AI infrastructure. The company recently introduced servers powered by NVIDIA’s Blackwell Ultra chips, which can train AI models up to four times faster than previous generations. These servers, available in both air- and liquid-cooled configurations, can support up to 192 NVIDIA chips, with customization options up to 256.

At the recent Dell Technologies World 2025 event, company leadership emphasized the strategic importance of AI, predicting that over 75% of enterprise data will soon be created and processed at the edge. Dell’s CEO reaffirmed the company’s mission to democratize AI, stating, “We’re on a mission to bring AI to millions of customers around the world. Our job is to make AI more accessible.”

Analyst Sentiment and Price Targets

Analyst enthusiasm has been another driver of Dell’s recent rally. In recent weeks, Evercore ISI raised its price target from $120 to $140, maintaining an “outperform” rating, while on May 19th Morgan Stanley also boosted its target ahead of earnings from $89 to $129, the firm also keeps an “Overweight” rating on the shares.

Mizuho raised the firms target on Dell on the same day, retaining an “Outperform” rating on DELL. Citi have also followed suit, by raising their price target on Dell Technologies from $105 to $128. Citi describes the stock as a “upside 90-day short-term view”. Raymond James have further increased the firms target on Dell from $139 to $144 on 05/13.

Current analyst price targets for Dell range from $91 on the low end to a bullish $156 on the high end. The average price target for the share is $128.11, reflecting a potential upside of more than 10% from the current level.

Despite its recent momentum, Dell faces significant challenges. The AI infrastructure market is fiercely competitive, with rivals like Super Micro Computer vying for market share. The high cost of producing advanced AI servers is putting pressure on margins, and Dell’s performance has lagged the broader US tech sector, which grew 11.4% over the past year.

Arthur Lewis, President of Dell’s ISG, recently emphasized that pricing for new AI products will be “competitive,” hinting at ongoing pricing pressure as the company seeks to expand its customer base.

With its Q1 earnings on deck and AI infrastructure strategy in sharp focus, Dell will likely be on plenty of watchlists. $125 will be the first major level we are watching to the upside, with ~$100 providing some level of support. The company’s recent stock surge reflects optimism around its AI ambitions and earnings momentum, but the path forward will depend on its ability to execute in a crowded, fast-evolving market.