Analysts at Goldman Sachs suggest that the recent rally in Dell Technologies stock (DELL) isn’t over yet and, in fact, has even more room to run. Goldman Sachs analyst Katherine Murphy reiterated a Buy rating on Dell in a note on Tuesday. Murphy set the price target at $500, implying about 15% more upside from current trading levels.

According to the Goldman Sachs analyst, Dell’s recent earnings report and yearly guidance set a strong precedent for the stock’s future. Dell said last Thursday evening it sees $167 billion in fiscal year 2027 revenue, including a staggering $60 billion from AI server sales. That’s up sharply from a prior outlook of about $140 billion and blew past analysts’ average estimate of $142.1 billion. Dell’s strong fiscal year 2027 outlook is constrained by supply, not demand, Murphy writes. That is often a combination for strong profit margins.

Additionally, Dell recently reported better-than-expected results, with Q1 revenue of $43.84 billion and adjusted EPS of $4.86, while AI-related demand and server sales were cited as major growth drivers.“We’re repricing, ⁠it feels like, every day. And I’m sure our customers feel that pain. Unfortunately, I don’t see that changing given the world that we’re living in today, where you have an ​inflationary environment,” ​Dell’s chief operating officer, Jeff Clarke, said on ​a post-earnings call.

Furthermore, Goldman Sachs isn’t the only firm on Wall Street bullish on Dell stock. Per TipRanks, based on 20 Wall Street analysts offering 12-month price targets for Dell Technologies in the last 3 months, the average price target is $455.00. DELL has a high forecast of $550.00 and a low of $240.00. Evercore ISI analyst Amit Daryanani has also reinstated coverage of Dell Technologies, with an Outperform rating and a price target of $450. “This is what an AI supercycle looks like,” the analyst wrote in a recent note.