Dell Shares Gain After Evercore Upgrade, AI Server Backlog Hits $18.4B
Dell shares climbed 1.06% after Evercore ISI upgraded to Tactical Outperform ahead of its Feb.26 earnings, trimming its price target to $160 from $180 while forecasting $31.4 billion in revenue and $3.52 EPS. Rising memory prices are driving pull-forward PC and server orders and AI server backlog stands at $18.4 billion.
1. Stock Performance
Dell shares climbed 1.06% on Thursday, outperforming the Nasdaq which fell 0.52% and the S&P 500 which shed 0.37%, reflecting investor enthusiasm ahead of its quarterly report.
2. Evercore Upgrade Details
Evercore ISI raised its rating on Dell to Tactical Outperform and trimmed its price target to $160 from $180, forecasting the company will exceed estimates of $31.4 billion in revenue and $3.52 EPS for the upcoming quarter.
3. Memory-Driven Demand
Rising memory prices have prompted customers to accelerate PC and server purchases, creating a pull-forward effect that has enhanced Dell's near-term sales momentum.
4. AI Server Backlog
Dell exited the third quarter with an $18.4 billion AI server order backlog and has guided fiscal 2026 AI server revenue to $25 billion, underscoring strong demand in its high-performance compute segment.