Figma Shares Indicated To Open $95/$100
On Tuesday, Raymond (NSE:RYMD) James maintained a positive outlook on Dell Technologies Inc. (NYSE:DELL) shares, raising the price target to $144 from $139, while keeping an Outperform rating. The adjustment follows a detailed review of the company’s prospects, particularly in light of recent industry developments. With a market capitalization of $72.17 billion, InvestingPro analysis suggests Dell is currently trading below its Fair Value, supporting the bullish stance.
Simon Leopold, a Raymond James analyst, adjusted the firm’s expectations for Dell, citing a shift in the market dynamics for artificial intelligence (AI) platforms and personal computers (PCs). According to Leopold, the transition to new GPU generations within AI technology has proven more challenging than previously thought, causing disruptions. Despite these challenges, Dell has shown strong momentum, with a notable 10.08% return over the past week. Concurrently, there’s been an observed acceleration in PC purchases, which Leopold attributes to buyers reacting to the potential impact of tariffs.
Despite these shifts, the analyst remains optimistic about Dell’s performance, especially as the company is set to report its earnings on May 29. While acknowledging the possibility of near-term risks due to a potential shortfall in AI sales, Leopold suggests that Dell is positioned to sustain growth rates above historical norms. This expectation is based on the belief that AI initiatives will evolve from being training-focused to inferencing, leading to wider enterprise adoption.
Leopold’s revised price target reflects these insights, signaling confidence in Dell’s ability to navigate the changing landscape and capitalize on long-term trends. The new target represents a modest increase, yet it underscores the analyst’s belief in the company’s growth trajectory beyond 2025.
In other recent news, Dell Technologies has announced updates to its data center solutions, focusing on server and storage advancements to meet modern AI and cybersecurity demands. The company introduced new PowerEdge servers with Intel (NASDAQ:INTC) Xeon 6 Processors, updated its PowerStore software with AI-powered analytics, and enhanced its PowerProtect solutions for improved cyber resilience. In financial developments, Dell disclosed a $4 billion debt offering through senior notes, with proceeds intended for general corporate purposes, including potential debt repayment. The debt issuance involves a consortium of banks like BofA Securities and J.P. Morgan Securities and is expected to close on April 1, 2025. Morgan Stanley (NYSE:MS) has maintained its Overweight rating on Dell, with a $128 price target, citing increased orders for Dell’s AI server systems. The firm noted a significant rise in shipments of the GB200 rack, suggesting a positive outlook for Dell’s future revenues. Additionally, Dell has partnered with Apple (NASDAQ:AAPL) and Super Micro Computer (NASDAQ:SMCI) to supply servers for Apple’s AI infrastructure, marking a strategic shift for Apple towards generative AI. In collaboration with NVIDIA (NASDAQ:NVDA), Dell has expanded its AI infrastructure offerings, introducing the Dell Pro Max series with NVIDIA superchips and announcing forthcoming PowerEdge servers to enhance AI acceleration.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.