Dell Technologies: Leveraging AI Servers, Premium PCs, and Cost Discipline to Drive 15%+ EPS Growth Through FY27

J.P. Morgan analyst Samik Chatterjee has maintained their bullish stance on DELL stock, giving a Buy rating on January 7.

Samik Chatterjee has given his Buy rating due to a combination of factors that, in his view, support Dell Technologies’ ability to manage near‑term cost pressures while delivering attractive longer‑term earnings growth. He highlights Dell’s established procurement practices and deep supplier relationships, along with the qualification of additional suppliers and more dynamic pricing and quote management, as key tools to offset rising memory costs and limit margin volatility. In client computing, he views the refreshed XPS lineup and the focus on leveraging its strong brand recognition as central to Dell’s strategy to capture incremental share in the consumer PC market.

Chatterjee also points to Dell’s AI server franchise and traditional server and storage businesses as important pillars of the investment case. He notes management’s confidence in sustaining mid–single-digit margins in AI servers across product generations, underpinned by Dell’s value-add at higher solution layers, as well as the continued economic incentive for customers to upgrade to newer servers that can replace multiple legacy units. In storage, the expected easing of headwinds from third‑party IP and the portfolio’s shift toward higher-value Dell IP reinforce his view that the company can achieve mid–single-digit revenue growth across servers and storage. Combined with operating leverage and capital returns, these drivers underpin management’s reiterated ambition for 15%+ EPS growth into FY27, supporting his Buy recommendation on the stock.

In another report released on January 7, Bank of America Securities also reiterated a Buy rating on the stock with a $163.00 price target.

Based on the recent corporate insider activity of 152 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DELL in relation to earlier this year.