BofA Securities analyst Wamsi Mohan maintained a Buy on Dell Technologies (NYSE:DELL) with a price target of $165 on Friday.
DELL stock is down today. Get the complete analysis here.
Mohan projected continued strength in AI server momentum ahead of the company's fiscal second-quarter 2026 earnings scheduled for Aug. 28.
Mohan expects Dell to post revenue of $29.4 billion and EPS of $2.35, both at the high end of guidance, with AI server revenue of $7.3 billion and orders of $5 billion, leaving a quarter-end backlog of $12.1 billion.
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Mohan sees full-year AI server sales reaching $20.7 billion in fiscal 2026 — above Dell's current $15 billion-plus guidance — and expects the company to raise that target to at least $18 billion, with potential for $20 billion or more in fiscal third-quarter results.
Mohan models Infrastructure Solutions Group (ISG) revenue growth of 36% year-over-year, driven by AI server shipments, and ISG margins of 9.3% in the second quarter, improving sequentially through fiscal 2026. Mohan forecasts third-quarter revenue guidance of $27 billion to $28 billion and EPS of $2.55 ± 10 cents, with fiscal 2026 EPS of $9.50 ± 20 cents on revenue of $103 billion to $107 billion.
On the Client Solutions Group (CSG) side, he expects revenue of $13 billion, up 5% year-over-year, fueled by 8% growth in commercial PC sales from pre-tariff demand pull-ins.
Mohan sees long-term earnings potential above $19 per share by 2030, with a 15% CAGR from 2025 to 2030, mainly driven by AI servers, margin improvements from product mix, and adoption of AI PCs.
DELL Price Actions: Dell stock is trading lower by 0.32% to $138.40 at publication on Friday.
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