DELL Stock Hits 52-Week High: Does it Have More Room to Run?

Dell Technologies DELL shares hit a 52-week high of $534.96 today following impressive second-quarter fiscal 2027 results. DELL is benefiting from strong demand for AI-optimized infrastructure. In the second quarter of fiscal 2027, AI server orders reached a record $60.9 billion, while revenues were $16.4 billion and ending backlog climbed to $95 billion. Dell is also benefiting from data-center modernization beyond AI. Traditional server and networking revenues surged 122% year over year in the fiscal second quarter. 

Year-to-date (YTD), DELL stock has jumped 308.4%, outperforming the broader Zacks Computer and Technology sector’s rise of 17.5%. DELL has also outperformed Super Micro Computer SMCI, Hewlett Packard Enterprise HPE and HP HPQ, shares of which have returned 34.6%, 119.1% and 42.5%, respectively, over the same time frame. Is there more room for the DELL stock to run? Let’s find out.

DELL Stock’s Price Performance

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DELL Shares Ride on AI Prospects

Dell is benefiting from exceptionally strong demand for AI-optimized infrastructure. DELL’s opportunity pipeline continued to expand sequentially and remained multiples of backlog, while the customer base across neocloud, sovereign and enterprise markets exceeded 6,500 in the second quarter of fiscal 2027. Dell expects fiscal 2027 AI server revenues of $74 billion, roughly three times the prior-year level. Dell’s broad portfolio across AI infrastructure, traditional servers, networking, storage and PCs allows it to capture spending across multiple areas of enterprise IT modernization.

The company is benefiting from growing clientele. Customers are replacing aging infrastructure to improve processing capacity, power efficiency, security and resiliency. A majority of Dell’s installed base remains on 14th-generation or older servers, providing a sizeable multi-year refresh opportunity. Demand is also being supported by greater CPU requirements associated with AI and agentic workloads.

Dell’s storage business is becoming a more meaningful contributor to growth and profitability. Storage revenues increased 26% year over year, supported by strong demand for Dell IP products. Dell IP demand has grown above the market for six consecutive quarters, while PowerFlex, PowerStore, PowerProtect, PowerVault, PowerScale and ObjectScale are seeing healthy demand. Expanding data volumes, infrastructure modernization, and AI workloads that require enterprises to prepare, manage, protect and move large datasets should continue to support storage demand.

The Client Solutions Group (CSG) is benefiting from strengthening enterprise PC refresh activity. CSG revenues increased 20% in the second quarter of fiscal 2027, while commercial revenues rose 22%, marking the eighth consecutive quarter of revenue growth. Large enterprises continue to refresh installed PCs across regions. At the same time, longer replacement cycles among more cost-sensitive customers are increasing the pool of aging devices, potentially extending Dell's long-term refresh opportunity. Consumer revenues also increased 7%, marking the fourth consecutive quarter of demand growth.

DELL’s Earnings Estimate Revision Shows Rising Trend

The Zacks Consensus Estimate for third-quarter fiscal 2027 earnings is pegged at $4.78 per share, up by 10.6% over the past 30 days and indicating 84.56% growth from the figure reported in the year-ago quarter. 
 

The consensus mark for fiscal 2027 earnings is pegged at $20.48 per share, up 9% over the past 30 days, suggesting 98.83% growth from fiscal 2026’s reported figure.

DELL Stock is Trading at a Premium

Dell shares are trading at a premium, as suggested by a Value Score of C. 

In terms of the forward 12-month price/earnings (P/E), DELL is trading at 23.70X, higher than the broader Zacks Computer and Technology sector’s 20.58X. Dell is trading at a higher multiple compared with peers, including Super Micro Computer’s 8.27X, Hewlett Packard Enterprise’s 13.66X and HP’s 10.51X.

DELL Shares Valuation

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Technically, Dell Technologies is trading above the 50 and 200-day moving averages (SMAs), indicating a bullish trend.

DELL Stock Trades Above 50 & 200-Day SMAs

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Conclusion

Dell’s prospects remain bright, supported by accelerating AI server demand, a massive backlog, a sizeable data-center refresh cycle, improving storage momentum and healthy commercial PC demand. The upward trend in earnings estimates and the stock’s position above its 50-day and 200-day moving averages further reinforce the positive outlook. Although DELL’s strong rally has pushed its valuation above the broader sector and key peers, the premium appears supported by robust earnings growth and expanding opportunities across AI infrastructure, traditional servers, storage and PCs. With AI server revenues expected to nearly triple in fiscal 2027 and demand remaining strong across the portfolio, Dell appears well positioned to sustain its growth momentum, suggesting further upside potential for the stock.

DELL currently sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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