Dell Technologies reports earnings Tuesday, and Wall Street has high expectations for the tech hardware company following a massive run in the stock this year.

Dell is scheduled to report fiscal second-quarter financial results after the stock market closes. Analysts surveyed by FactSet expect the personal computer and server maker to report adjusted earnings of $4.92 per share on revenue of $44.9 billion.

In the same period last year, Dell posted adjusted earnings of $2.32 per share on revenue of $29.8 billion.

Wall Street will again be paying close attention to Dell's server business, which has boomed in recent quarters amid the rising demand for the hardware needed to help power artificial intelligence. Server and networking storage revenue is estimated to be $25.2 billion, a 95% increase from the $12.9 billion in the prior year period.

"We see the bar as high but achievable for DELL, with the incremental debate less about the beat and more about whether DELL raises the AI server target again and by how much," Evercore ISI analyst Amit Daryanani wrote on Aug. 28. He rates Dell as Outperform with a $550 price target.

KeyBanc analyst Brandon Nispel also thinks Dell has a "high bar" to reach when it comes to its server business. He wrote on Aug. 23 that following several quarters of massive growth, "deceleration is inevitable and DELL is trading at a meaningful premium to its historical valuation, warranted due to the exceptional growth, though creating more risk."

Nispel rates Dell as Sector Weight without a price target.

Dell stock has soared 247% this year. As of Friday's close, it was trading at 21.5 times earnings expected over the next 12 months, which is higher than its five-year average of 10.9 times forward earnings. Wall Street is betting big on the tech hardware firm as customers are spending massive amounts of capital to build out the infrastructure needed to power AI.

Other tech hardware companies that have reported earnings in recent weeks point to continued strong demand in the space, which is a good sign for Dell.

Super Micro Computer posted better-than-expected fiscal fourth-quarter earnings on Aug. 11. The server maker gave a positive outlook for the full fiscal year, citing continued strong demand. Cisco Systems then also reported solid financials and guidance, with its results boosted by customers' needs for AI hardware.