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Dell Stock Hits Record Highs on AI Server Demand Ahead of May 28 Earnings

Wall Street upgrades plus new AI product announcements have driven a sharp re‑rating that will be tested by Dell’s May 28 quarterly report.

Overview

  • The stock jumped to fresh all‑time and 52‑week highs Friday after a coordinated wave of analyst price‑target increases and product reveals at Dell Technologies World.
  • Dell reports a roughly $43 billion AI server backlog and has said it aims to grow AI‑related revenue toward about $50 billion by fiscal 2027, a key driver of investor optimism.
  • Several firms raised targets aggressively while others, led by Morgan Stanley, warned that rising memory and GPU transitions could squeeze server gross margins and leave the stock exposed if guidance falters.
  • Market indicators show very bullish positioning but overbought technicals, with the RSI in the mid‑70s and options flows implying traders expect further upside after the May 28 print.
  • The coming earnings release is the immediate catalyst because it must show that front‑loaded AI orders translate into sustainable revenue and margins or risk a pullback that could affect vendor supply chains and corporate procurement plans.