UBS Points to Two Top European Luxury Stocks Ahead of 2026 Upswing
Investing.com - Aletheia Capital downgraded Dell (NYSE:DELL) from Buy to Hold and removed its previous $180 price target, citing increasing competitive threats from Nvidia’s L6-L10 AVAP initiatives.
The downgrade reflects concerns that Nvidia’s initiatives may diminish Dell’s value proposition in system-level customization. Aletheia also noted potential FY27 margin pressure related to higher memory input costs.
The research firm reduced its FY26/FY27 gross profit margin forecasts by 1-2 percentage points, primarily due to expected margin contraction in Dell’s Client Solutions Group and storage servers.
Aletheia sees downside risk to consensus AI server revenue forecasts for FY27, modeling $36 billion compared to Wall Street’s expectations exceeding $50 billion. The firm cut its FY26/FY27 earnings per share estimates by 1%/12%, placing them 3%/11% below consensus.
Dell is scheduled to report its quarterly earnings later today, with Aletheia anticipating in-line fiscal third-quarter results and a modest outlook for the fourth quarter.
In other recent news, Nvidia’s latest financial guidance has surpassed analyst expectations, prompting UBS to maintain its Buy rating with a $235 price target. The firm’s projections suggest Nvidia could reach $350-400 billion in revenue and over $9 in earnings per share by 2026. Benchmark also raised its price target for Nvidia to $250, citing strong quarterly earnings that exceeded market expectations by $2 billion and guidance that was nearly $3 billion above consensus estimates. Meanwhile, Raymond James has reiterated and resumed its Strong Buy rating for Nvidia, with a price target of $272, citing the company’s leadership in AI computing and strategic updates in GPU architecture. In contrast, Alphabet’s expansion into TPU AI chips is creating new opportunities for its Asian suppliers, potentially challenging Nvidia’s dominance in the AI chip market. Analysts predict a volatile trading environment as the competitive landscape shifts. These developments highlight the dynamic nature of the technology sector and the evolving strategies of major players like Nvidia and Alphabet.
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