{
  "id": 6135517,
  "title": "Evercore ISI Names Top Pick, Lifts Target to $575 on AI Growth",
  "url": "https://urgent.news/2026/09/07/evercore-isi-names-top-pick-lifts-target-to-575-on-ai-growth",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-07T12:32:32.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/stock-market-news/evercore-isi-names-top-pick-lifts-target-to-575-on-ai-growth-93CH-4890639"
  },
  "original_language": "en",
  "account": "Evercore ISI has named Dell Technologies as its top pick, raising its price target to $575 ahead of a potential growth surge in the AI sector. The investment firm removed Dell from its Tactical Outperform (TAP) list after the company reported impressive July-quarter earnings, surpassing estimates with $47 billion in sales and $7.04 in earnings per share (EPS).\n\nDell's revenue grew by 58% year-over-year, with growth spread across various segments. Traditional Server/Networking saw a significant rise of 122%, while AI servers increased by 100%, storage rose by 26%, and the PC segment grew by 20%. AI server revenue reached $16.4 billion, with $61 billion in orders, making the AI backlog approximately $95 billion.\n\nThe company's growth is driven by demand for both traditional servers and AI deployments, with the latter contributing to a backlog of around $95 billion. Traditional server growth was fueled by next-generation x86 server migrations, storage infrastructure upgrades, and demand for on-premises inferencing and token generation infrastructure. Storage segment growth of 26% also helped boost margin expansion, pushing ISG margins to 15%, up 630 basis points year-over-year.\n\nDell has raised its FY27 revenue guidance to approximately $192 billion, indicating a 70% year-over-year growth. This growth is expected to come from various segments, including ISG (up 120%), AI (up 300%), and CSG (mid-teens growth). The company anticipates non-GAAP EPS of about $25.50, up from the previous estimate of $17.90.\n\nDespite the strong results, Dell remains supply constrained, a factor the investment firm views as supportive of continued revenue growth into FY28 and beyond. Evercore ISI views this July 1 earnings report as the catalyst for its tactical list change, while maintaining its \"outperform\" rating and $575 target, given Dell's exposure to attractive infrastructure verticals.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}