Top Bank Downgrades Dell After 300% Rally, Warns AI Growth Could Slow Nauman Khan Wed, October 14, 2026 at 1:01 PM EDT DELL -11.81% ^GSPC -1.15% Trade DELL on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Barclays lowered its rating on Dell Technologies (NYSE:DELL) to Equal Weight from Overweight, warning that the stock's steep rally may limit gains as enterprise AI spending has yet to show a broad acceleration.
Analyst Tim Long cut his price target to $574 from $603. Dell shares have climbed more than 300% this year, compared with a 14% gain for the S&P 500.
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Dell has benefited from higher pricing that has helped absorb rising memory costs. Barclays expects revenue from Dell's AI server business to triple to about $75 billion in the current fiscal year, with operating margins stabilizing near 5%.
Long said revenue could exceed his estimate and reach $100 billion in fiscal 2028. However, he expects growth to cool over the next two years, reducing the scale of potential earnings surprises. Dell has also lowered operating expenses as a share of revenue, from 15.6% in fiscal 2024 to an estimated 8% in fiscal 2027.
Although Long still sees scope for earnings forecasts to rise, he expects smaller upgrades to provide less support for additional share-price gains.
