Dell raises growth forecast: Wall Street updates stock targets; AI plans drive confidence

Dell Technologies has updated its financial goals, aiming for stronger revenue and profit growth from 2026 to 2030. Analysts from firms like Mizuho and Melius Research raised their stock price targets, showing trust in Dell’s AI and enterprise business. Dell expects high demand for AI servers and better cash returns to shareholders. It also plans to increase its dividend. The company’s strong AI position, new forecasts, and rising stock value are making investors more confident about its future.

Dell Technologies has increased its financial targets for the next five years. At its Analyst Day in New York, the company said it expects revenue to grow by 7% to 9% every year until 2030. It also aims to grow earnings per share by 15% annually. Dell plans to return about 80% of its free cash flow to shareholders. This shows its focus on steady profits and giving more back to investors. These new goals are higher than earlier ones. Dell had previously expected only 3% to 4% revenue growth each year. The change reflects strong demand for its enterprise and AI products.

A big part of Dell’s future plans is based on growth in artificial intelligence. Dell’s Infrastructure Solutions Group (ISG), which includes AI servers and data storage systems, is expected to grow 11% to 14% every year. Within ISG, AI servers are expected to grow even faster i.e. between 20% and 25% each year. Dell believes most large companies will install AI systems on their own servers instead of using cloud services. This trend works in Dell’s favor, as it leads the market in enterprise hardware.

After Dell shared its new plans, several financial firms raised their price targets for the company’s stock. Mizuho raised its target from $160 to $170 and kept a positive Outperform rating. Melius Research set a higher target of $200. UBS kept a Buy rating with a target of $155, and Raymond James gave a target of $152. Dell’s stock is currently trading near $151, close to its 52-week high of $154.70. The stock has gone up by over 110% in the past six months.

Dell said it will increase its quarterly dividend by at least 10% every year until 2030. It also completed a $4.5 billion bond offering with due dates from 2029 to 2036. These moves are aimed at improving investor trust and showing financial strength. With a P/E ratio of 21.22 and a solid balance sheet, Dell is seen as a stable and growing company in the AI and enterprise tech space.

1. What are Dell’s new financial targets?
   Dell expects 7%–9% annual revenue growth and 15% annual profit growth from 2026 to 2030.
2. Why are analysts raising Dell’s stock price target?
   Analysts expect Dell to benefit from strong AI demand and better financial returns to shareholders.
3. How is Dell planning to grow its AI business?
   Dell is focusing on AI servers, which it expects to grow 20%–25% per year as more companies use AI on-premise.