JPMorgan Hikes Dell Price Target to $280: Memory Concerns Fade as AI Server Story Powers On

"JPMorgan raised its price target on Dell Technologies to $280 from $205, keeping an Overweight rating, arguing that memory cost headwinds have eased even as the AI server franchise continues to scale. The firm cites the reversal of memory related concerns for the recent rally in the IT hardware group and now sees a clear runway for upward earnings revisions. For long-term investors, the call reinforces a thesis that has been building all spring: Dell's AI server backlog is translating into durable, multi-quarter earnings power."

"JPMorgan's thesis hinges on two shifts. First, the memory cost overhang that pressured server gross margins earlier this year has stabilized, removing a key bear argument. Second, heading into the earnings print, JPMorgan is positive on Dell Technologies, expecting estimate revisions to reinforce the medium-term growth outlook. The firm expects shares to return to valuation multiples "more appropriate for the medium-term earnings growth outlook." That framing matters: it positions for sustained, multi-quarter earnings power."

"Dell's Q4 FY2026 results illustrate the AI tailwind. Revenue reached $33.38 billion, up 40% year over year (YoY), while AI-optimized server revenue hit $8.95 billion, up 342% YoY. The company exited the year with a $43 billion AI backlog and guided FY2027 AI server revenue near $50 billion. Dell maintains deep partnerships with major chipmakers for AI silicon. The trade-off is mix-driven margin pressure, with Q4 GAAP gross margin at 20% versus 24% a year earlier."

"Dell trades at a forward P/E ratio of 20x, with a 52-week range of $104.79 to $263.99. JPMorgan's $280 target sits above the prior Street consensus of $192.91, signaling that estimates likely need to move higher. The ca"

JPMorgan raised its price target for Dell Technologies to $280 from $205 while keeping an Overweight rating. The update points to easing memory-related cost headwinds that previously pressured server gross margins. With those concerns stabilizing, the firm expects a clearer runway for upward earnings revisions. Dell’s AI server backlog is described as translating into durable, multi-quarter earnings power. Dell reported Q4 FY2026 revenue of $33.38 billion, up 40% year over year, with AI-optimized server revenue of $8.95 billion, up 342% year over year. The company exited the year with a $43 billion AI backlog and guided FY2027 AI server revenue near $50 billion, while mix-driven margin pressure kept Q4 GAAP gross margin at 20% versus 24% a year earlier.

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