This article first appeared on GuruFocus.
Dell Technologies (NYSE:DELL) could raise its fiscal 2027 outlook when it reports second-quarter results next week, with J.P. Morgan pointing to continued demand for AI servers and traditional infrastructure.
J.P. Morgan expects the company to build on its existing revenue forecast for 47% growth. The bank has an Overweight rating and a $565 price target on the shares.
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AI infrastructure demand remains a key factor. Industry forecasts now call for AI server growth of more than 80% in 2026, up from an earlier estimate of 64%, according to the report.
Demand outside AI is also improving. Server growth expectations for 2026 have moved above 30%, compared with 22% previously, potentially providing another source of support for Dell's business.
Dell is scheduled to release results after the market closes Tuesday, Sept. 1. Analysts expect adjusted earnings of $4.92 per share, GAAP earnings of $4.43 and revenue of $44.5 billion.
A higher outlook could reinforce investor confidence that AI and broader infrastructure spending are supporting Dell's earnings growth.