Dell Technologies Inc. (NYSE: DELL) is poised to underscore its financial ambitions and growth potential at its upcoming Analyst Day, as highlighted in a recent UBS note. The Texas-based technology company is expected to project earnings growth for the next three years, address ongoing concerns regarding profit margins—especially those related to artificial intelligence (AI) server sales—and discuss the potential for margin variation depending on server revenue. These messages are anticipated against a backdrop of ongoing investor debate over how the company’s significant investments in AI affect its bottom line.
UBS continues to rate Dell as a buy, with a raised price target currently set at $155 per share, up from $145. UBS analysts expect the company to re-emphasize its annual revenue targets and reaffirm growth forecasts, driven by robust demand for AI infrastructure. However, they also caution that variations in gross margins, particularly around server revenue, will likely be a central discussion point at the event and could influence investor sentiment and valuation. As reported by Yahoo Finance, Dell shares were down over 1% in advance of the event.
Dell’s recent financial performance has reflected both optimism and challenge amid the AI investment wave. In May 2024, Dell announced that its shipments of AI-optimized servers more than doubled, hitting $1.7 billion. Yet, higher production costs for these advanced systems led executives to forecast a 150 basis point reduction in the adjusted gross margin rate for fiscal 2025, triggering an 18% drop in the firm’s stock price at the time, according to Reuters.
To further support enterprise adoption of AI, Dell unveiled a new generation of AI servers in May 2025, featuring Nvidia’s advanced Blackwell Ultra chips. These servers are designed to accommodate up to 256 such chips in a single configuration and promise AI model training speeds up to four times faster than previous iterations. These advancements put Dell in direct competition with other server providers seeking to capitalize on widespread AI adoption (Reuters).
Despite these technological milestones, Dell’s financial results in August 2025 fell short of market expectations. The company reported a second-quarter operating margin rate of 18.7%, less than the projected 19.6%, as it prioritized high-value AI server orders, navigated rising production costs, faced supply chain bottlenecks, and implemented aggressive pricing to secure large contracts. This resulted in a 6% premarket share price decline after the earnings report (Reuters).
Analysts remain divided on Dell’s future outlook. UBS’s raised price target was attributed to unexpectedly strong AI server sales, which reached $8.2 billion—well above the forecasted $7 billion. Nevertheless, the Client Solutions Group exhibited slower growth relative to industry rivals, and the storage business saw revenue miss estimates by roughly 6%, as noted by Investing.com. In parallel, Wells Fargo maintained its Overweight rating but lowered its price target from $160 to $150, citing ongoing pressure on margins but highlighting Dell’s substantial AI server backlog of $11.7 billion by quarter’s end (AInvest).
As of October 6, 2025, Dell’s stock price stands at $145.76, up 3.58% over the previous close. Trading activity on the USA equity market has seen the stock reach an intraday high of $149.26 and a low of $141.82, with over 10.4 million shares trading hands as of 23:44:30 UTC. The current price reflects a $5.04 increase, or 0.04%, from the prior session’s close.
Despite near-term volatility and margin pressures linked to its expanding AI server business, Dell continues to invest in next-generation infrastructure. Analysts and investors alike will look to the upcoming Analyst Day for further clarity on how the company balances growth ambitions, technological leadership, and profitability in an increasingly AI-driven market.