Dell Technologies Inc. (NYSE:DELL) drew a fresh wave of Wall Street optimism after its blockbuster earnings report, with analysts arguing the stock remains undervalued despite a nearly 29% surge as AI demand, pricing power, and cash-flow strength continue to accelerate.

Ben Reitzes Says Dell Still Looks Cheap After Its Rally

Melius Research analyst Ben Reitzes told CNBC on Friday that Dell remains undervalued even after its sharp post-earnings rally.

He said the company exceeded expectations across its business, with strength extending beyond AI servers to traditional servers and PCs.

Reitzes pointed to enterprise pricing power, AI-driven network upgrades, and growing PC demand tied to AI workloads as key growth drivers.

He also said Dell disproved concerns about margin pressure by demonstrating strong operating leverage, keeping expenses under control, and using AI internally to improve productivity.

Reitzes raised his price forecast to $560 and said Dell could deliver more than 20% long-term earnings-per-share growth while returning increasing amounts of cash to shareholders through strong free cash flow.

Mehdi Hosseini Sees Higher Valuation Potential

Susquehanna analyst Mehdi Hosseini told CNBC that Dell’s earnings strength, margin resilience, and cash-flow generation support a higher valuation.

He argued that Dell should be evaluated on an enterprise value-to-sales basis because the company has maintained high-single-digit margin profiles while generating substantial free cash flow.

Hosseini noted that the company generated more than $3 billion in free cash flow during the April quarter and said its mix of higher-margin services, storage, and other infrastructure offerings has helped preserve profitability.

He also suggested that component shortages could defer some revenue into the next fiscal year rather than eliminate demand, supporting the sustainability of future revenue and cash-flow growth.

Hosseini added that Dell’s comments on persistent memory shortages are positive for suppliers such as Micron Technology, Inc. (NASDAQ:MU) and Sandisk Corp. (NASDAQ:SNDK).

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $347.54. Recent analyst moves include:

  • Truist Securities: Hold (Raises forecast to $360.00) (May 29)
  • Piper Sandler: Overweight (Raises forecast to $497.00) (May 29)
  • Wells Fargo: Overweight (Raises forecast to $505.00) (May 29)
  • Susquehanna: Upgrades to Positive (Raises forecast to $700) (May 29)

DELL Price Action: Dell Technologies shares were up 28.98% at $408.93 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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