Goldman Sachs lifts Dell (DELL) target to $500, sees 15% more upside on AI server boom

Goldman Sachs analyst Katherine Murphy reiterated a Buy rating on Dell Technologies (DELL) on June 2, 2026, raising the price target to $500, implying roughly 15% additional upside. Murphy cited accelerating AI server revenue, significantly upgraded guidance, and a record order backlog as key catalysts. Dell disclosed on May 28 a fiscal 2027 revenue forecast of $167 billion, including $60 billion from AI server sales, up sharply from a prior $140 billion outlook and well above the $142.1 billion analyst consensus. First-quarter revenue surged 88% to $43.8 billion, easily beating estimates of $35.5 billion. The company booked $24.4 billion in AI orders during the quarter and ended with a $51.3 billion AI server backlog. Shares soared 32.8% on May 29 and climbed another 10.7% on June 1. In premarket trading on June 2, the stock added 2.5%. Rival Hewlett Packard Enterprise also reported bullish results, underscoring broad AI infrastructure demand.