Dell Stock Exploded Over 300% — Its 150% EPS Growth Could Send It Even Higher

Dell (DELL) has seen an impressive 310% increase in its share price over the past year, driven by demand for AI-related products and rising enterprise IT spending. Despite this remarkable growth, there is still potential for further upside. Management forecasts a 150% increase in adjusted earnings per share (EPS) for fiscal year 2027, indicating that the stock may still have room to run.

Dell's robust performance in the first half of fiscal 2027, with record revenue and earnings, has led to a significant revision of its full-year guidance. The Infrastructure Solutions Group (ISG) segment, which includes AI-related orders, contributed to this success, with AI server revenue tripling year-over-year. The company's diversified customer base, including neocloud providers and large enterprises, and its growing AI backlog of approximately $95 billion, further support its growth prospects.

With its current valuation still reasonable and analysts predicting continued strong double-digit earnings growth in the future, Dell appears to have significant upside potential.