Dell Technologies saw its shares decline on Friday following a weaker-than-expected revenue outlook, but analysts suggest the dip could be a chance for investors to buy in
The company projected fiscal 2026 revenue between $101 billion and $105 billion, with the midpoint falling short of the $103.81 billion consensus estimate compiled by Visible Alpha. This underwhelming guidance led to a nearly 6% drop in Dell’s stock, bringing its year-to-date losses to around 12%.
Despite the disappointing forecast, UBS analysts believe the market’s reaction may be overblown. They advised clients to “buy any weakness in Dell shares,” arguing that the softer outlook was largely expected due to near-term economic headwinds. UBS slightly lowered its price target on the stock from $158 to $150, which still implies nearly 50% upside from Friday’s trading levels around $102.
JPMorgan analysts echoed a similar sentiment, maintaining their $150 price target and emphasizing Dell’s long-term growth potential. They pointed to strong demand for AI infrastructure as a key driver that could benefit Dell’s server business. Additionally, they highlighted a potential rebound in the traditional PC market, as well as the growing adoption of AI-powered PCs, as factors that could provide further upside for Dell.
While the short-term outlook may appear uncertain, analysts remain optimistic about Dell’s positioning in the AI-driven computing market. The current dip in its stock could present a strategic entry point for investors looking to capitalize on long-term growth trends.
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