Dell Technologies Poised for Strong 2025 Performance, Says Evercore ISI
Evercore ISI has maintained an Outperform rating and a price target of $150 for Dell Technologies, citing expected revenue acceleration across the company’s portfolio. The firm’s analysts pointed to robust demand for AI servers, storage, and PCs as well as a growing interest from enterprise customers.
Dell’s AI server demand is driven by a strong backlog of $4.5 billion and a 50% pipeline momentum quarter-over-quarter. However, the analysts noted that conversion of orders to revenues remains heavily dependent on GPU allocations, which may cause revenue volatility.
The company is expecting growth across its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG) in fiscal year 2026, with the most robust growth anticipated in AI servers, followed by traditional servers, storage, and PCs.
Evercore also highlighted Dell’s efforts to recapture lost market share in storage and the upcoming launch of its “Project Lightning” internal parallel file system for AI-centric customers in the fall of 2025.
Despite a muted performance in the October quarter, Dell remains optimistic about a PC upgrade cycle driven by the end-of-life for Windows 10 in October 2025 and an extensive installed base of aging PCs. The company is also confident about its competitive positioning in the sovereign and enterprise markets, with fewer competitors present.