Dell: The AI Thesis Won, But The Easy Upside Is Gone
Fiscal Q2 2027 thesis update | Rating: HOLD | Present target: $500
Summary
Dell's Q2 FY2027 revenue reached $47.0 Bn and non-GAAP EPS reached $7.04, beating pre-quarter consensus by about 4% and 43%, respectively.
The operating thesis strengthened: AI backlog rose from $43 Bn in the April article to $95 Bn, while storage, traditional servers and CSG all accelerated.
My $500 present target applies 20x to a $28.61 FY2028 EPS estimate and discounts the resulting future value at 10% for roughly 17 months.
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Source; Dell
