Dell's previously announced revenue for the second quarter of fiscal year 2027 increased 58% year over year to 46.97 billion US dollars, AI server revenue doubled to 16.4 billion US dollars, and AI server orders reached a record 95 billion US dollars. However, Barclays believes that strong short-term performance is not enough to dispel concerns about the sustainability of long-term growth and valuation. Barclays analyst Tim Long downgraded Dell Technology's rating from “increase in holdings” to “hold and wait and see”, and the target price was lowered from $603 to $574. The main concerns were the company's high valuation, rising memory costs, and uncertainty about the company's IT spending prospects. Barclays pointed out that although Dell's 2027 fiscal year guidelines show that enterprise server business revenue is expected to grow by more than 100%, and the storage and client solutions business is also expected to grow by more than ten percentage points, a significant portion of this increase comes from rising memory prices driving up the average sales price of products, rather than actual demand expansion. The agency warned that as memory prices tend to normalize or even fall in the future, Dell's revenue growth rate may slow significantly in the next two years.

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