US mulls equity stakes in chipmakers receiving CHIPS Act Funds - Reuters
Investing.com - Melius Research raised its price target on Dell (NYSE:DELL) to $170 from $148 on Monday, while maintaining a Buy rating on the stock ahead of the company’s upcoming earnings report. According to InvestingPro data, Dell’s stock is currently trading near its 52-week high of $147.66, having delivered an impressive 21.74% return year-to-date.
The price target increase reflects Melius’s more optimistic view of Dell’s business segments, with the research firm raising estimates "materially" through fiscal year 2028.
Melius cited potential upside across all of Dell’s business segments and expressed a "more constructive view" on the impact of tariffs on the company’s operations.
The research firm specifically highlighted the long-term potential of Dell’s AI server business, noting that by fiscal 2028, "the attach rate of services and even storage could become more material for AI servers," countering the view held by many that these are "empty calories."
Dell is scheduled to report its fiscal second-quarter 2026 earnings results on August 28.
In other recent news, Dell Technologies has seen a series of positive analyst updates, reflecting strong expectations for its artificial intelligence server business. Both Evercore ISI and Mizuho (NYSE:MFG) have raised their price targets for Dell to $160, citing potential upside in AI server momentum and increased earnings estimates, respectively. Additionally, BofA Securities has increased its price target to $165, highlighting anticipated benefits from enterprise and sovereign AI growth over the next decade. In terms of product development, Dell announced updates to its AI Data Platform, enhancing its capabilities with a new unstructured data engine developed with Elastic (NYSE:ESTC). This update aims to improve performance through features like vector search and GPU acceleration. Meanwhile, Dell’s stock experienced a decline following Super Micro Computer (NASDAQ:SMCI)’s disappointing quarterly results, which missed Wall Street estimates and hinted at potential market share shifts. These developments underscore the growing importance of AI in Dell’s strategic outlook.
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