Dell Technologies receives new Street-high price target of $260 from Mizuho
Shares of the technology giant have surged 94.32% this year as enterprise demand for infrastructure accelerates.
Mizuho Securities has raised its price target on Dell Technologies to $260, establishing a new high valuation on Wall Street. The analyst firm attributes this bullish adjustment to the company's strategic positioning within the emerging agentic AI era, where demand for massive computing power and networking capacity is accelerating. This move reflects growing investor confidence that Dell is transitioning from a legacy personal computer manufacturer to a critical backbone provider for the AI economy.
The upgrade comes as Dell reported record revenue of $33.4 billion in the fourth quarter of fiscal 2026. The company highlighted a substantial backlog of $43 billion for AI-optimised servers, underscoring the robustness of its order book. This infrastructure focus has driven significant market performance, with Dell shares surging 94.32% year-to-date, propelled by surging enterprise demand for AI infrastructure and record operating income.
Recent trading activity has seen momentum accelerate further, with shares jumping 10.4% intraday on May 6 to hit a fresh 52-week high of $239.45. Despite this rally, the stock is currently trading at 18.19 times forward earnings, which represents a discount compared to industry peers. This valuation context suggests potential room for growth, with Mizuho's target implying the stock could still rally further.
The broader analyst consensus remains positive, with 16 of the 25 analysts covering the stock recommending a "Strong Buy". The average analyst price target stands at $186.68, a figure Dell has already surpassed. Other major institutions have also shown confidence in the name; BofA Securities raised its target to $246, while Evercore ISI increased its target to $240 in recent months.
Dell's fiscal 2026 results have been driven largely by its Infrastructure Solutions Group, which generated record AI-optimised server revenue of around $9 billion in the fourth quarter alone. Management noted that the company closed more than $64 billion in AI-optimised server orders during the fiscal year, with projections suggesting AI server revenue could more than double in fiscal 2027 to around $50 billion.
While the focus remains on infrastructure, Dell continues to operate through its two main segments: the Client Solutions Group and the Infrastructure Solutions Group. The company provides comprehensive hardware, software and services solutions to consumers, businesses, and the public sector globally, with a market capitalisation of $148.7 billion.
