Two weeks ago, JPMorgan raised its Dell price target to $280 and called it a meaningful move. After Dell’s latest earnings, that target lasted less than a fortnight.
On May 29, the same analyst nearly doubled it again.
JPMorgan raises Dell target: the analyst behind the call
Samik Chatterjee, a top-ranked JPMorgan analyst rated eighth among more than 10,000 Wall Street analysts on TipRanks, raised his price target on Dell Technologies (DELL) to $500 from $280 and maintained his overweight rating following Dell’s latest earnings, according to 24/7 Wall St.
The progression is striking. Chatterjee raised the target to $280 from $205 on May 15 as memory cost headwinds eased. He has now moved it to $500 after Dell’s earnings print.
That is a 144% increase from where JPMorgan stood just two weeks ago.
The raise is driven by a specific set of numbers Dell put on the table, not a general re-rating of sentiment toward the stock.
Dell AI backlog and revenue outlook drive new stock price target
The headline figure is Dell’s AI order momentum. Chatterjee said Dell booked $24 billion in AI orders in the latest quarter, bringing the total backlog to $51 billion. Dell also raised its AI revenue outlook to $60 billion, according to TipRanks.
The $60 billion AI revenue outlook implies 144% year-over-year growth. Chatterjee noted it still looks supply constrained, but he argued the figure implies share gains because Dell’s portfolio and execution on complex systems continue to reinforce its industry leadership.
He also flagged a specific dynamic in Dell’s second-half outlook. The H2 guidance embeds a $10 billion half-over-half revenue moderation that Chatterjee said currently looks more constrained by supply visibility than by actual demand.
He said he envisions further raises through the year as supply visibility improves, a track record Dell has already demonstrated by leveraging its scale ahead of competitors.
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Why JPMorgan raised the Dell valuation multiple so aggressively
The target increase to $500 from $280 is not purely an earnings revision. It is a multiple re-rating. Chatterjee lifted his valuation multiple to 25 times from the high-teens range, citing improved visibility into a higher sustainable earnings growth rate over the medium term.
His argument is that Dell’s growth is not just a near-term AI surge. The combination of device refreshes, infrastructure upgrades, and AI-related capacity needs is driving visibility into a higher sustainable run rate than Dell’s prior guidance for mid-teens growth implied.
That justifies a higher multiple, not just higher estimates.
He was also specific about Dell’s non-AI business. Storage products with Dell’s own proprietary IP are supporting the gross margin outlook outside AI.
Strong traditional server mix tied to enterprise refresh activity and readiness for agentic AI workloads adds further support. Dell is also gaining share in client solutions while showing stronger-than-expected margin performance from revenue scale.
Key figures from JPMorgan’s May 29 Dell note:
- New target: $500, raised from $280; overweight maintained; analyst Samik Chatterjee; valuation multiple raised to 25x from high-teens, according to TipRanks.
- Target progression: $205 prior to May 15; raised to $280 on May 15 as memory headwinds eased; now $500 after earnings, according to 247 Wall St.
- AI orders: $24 billion booked in latest quarter; backlog now $51 billion; AI revenue outlook raised to $60 billion, implying 144% year-over-year growth, TipRanks confirmed.
- H2 outlook: $10 billion half-over-half revenue moderation embedded in guidance; Chatterjee says this looks supply-constrained rather than demand-constrained, TipRanks noted.
- Non-AI drivers: Storage with proprietary IP, traditional server enterprise refresh, agentic AI readiness, client share gains, and pricing execution on memory costs all cited, TipRanks confirmed.
- Analyst profile: Chatterjee ranks in the top 10 among more than 10,000 Wall Street analysts tracked by TipRanks; 69% success rate and 16.2% average return per rating, according to TipRanks.
What the $500 target means for investors watching Dell
A $500 target from JPMorgan is not just a number. It is a statement that one of the most respected analysts covering IT hardware believes Dell’s earnings power has structurally re-rated, not just cyclically improved.
The 25x multiple Chatterjee is now applying reflects conviction that Dell can sustain a higher growth trajectory than the market was pricing before this earnings cycle.
The risk embedded in that target is the same one Chatterjee acknowledges directly: Roughly 50% year-over-year revenue growth is not sustainable indefinitely.
The $10 billion H2 moderation already baked into Dell’s own guidance is the company’s acknowledgment of that reality. Whether the subsequent quarters deliver on the visibility Chatterjee is crediting or reveal a demand normalization that compresses the multiple is the central question investors are now pricing.
Dell’s installed base of PCs and traditional servers still leaves meaningful room for further upgrades, which is one reason Chatterjee is comfortable with a higher medium-term growth assumption.
But the next two earnings reports will be the most direct test of whether the $51 billion backlog converts at the pace the new target requires.
Related: UBS resets Dell stock price target ahead of earnings
