tech
March 11, 2026
This AI server stock is set for a 50% rally, according to Bernstein
Bernstein believes that Dell's AI server revenue could reach $50 billion by fiscal year 2027.
TL;DR
- Bernstein reiterated an outperform rating and raised Dell's price target to $220 from $180.
- Dell's AI server revenue and profit growth are strong catalysts, with FQ4'26 seeing all-time high quarterly revenues, orders, and backlog.
- Dell is considered a clear leader in the AI server original equipment manufacturer market.
- AI server momentum remained exceptionally strong last quarter due to broad-based demand from enterprise clients.
- Dell expects $13 billion in AI server revenue for FQ1/27, projecting 37% month-over-month growth.
- The analyst expects Dell's AI server revenue to reach $50 billion by fiscal year 2027, representing 100% year-over-year growth.
- Dell is confident in maintaining mid-single-digit AI operating margins, supported by backlog visibility, supply-chain scale, and differentiated offerings.
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