Dell's AI Rally Is About to Face Its Next Big Test

This article first appeared on GuruFocus.

Dell Technologies (DELL, Financials) has had a phenomenal year. Earnings are now going to put that AI optimism to the test.

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The stock has gained over 235% in 2026, supported by soaring demand for AI servers and infrastructure. Evercore ISI analyst Amit Daryanani sees more upside, holding an Outperform rating and a $550 price target ahead of Dell's Sept. 1 results.

Dell came into the quarter with a lot of enthusiasm. In its last report, the company booked $24.4 billion in AI orders, made $16.1 billion in AI server revenue and ended with a record $51.3 billion backlog. Demand also continues to outstrip supply, management added.

Evercore anticipates Dell to exceed Wall Street's fiscal second-quarter projections and to increase its fiscal 2027 forecast. Stronger expenditure from big AI customers such as CoreWeave and SpaceX might bolster demand, while storage could offer another lift.

The difficulty is that the stock has raised expectations.

Following such a big surge, even meeting expectations may not be enough. Dell may have to demonstrate that demand for AI is robust enough to maintain both revenue and outlook higher.