Dell stock price target raised to $160 from $150 at Evercore ISI

Investing.com - Evercore ISI has raised its price target on Dell (NYSE:DELL) to $160.00 from $150.00 while maintaining an Outperform rating on the stock. The company, currently valued at $93.9 billion, has seen its stock surge nearly 23% over the past six months, with InvestingPro data showing it trading near its 52-week high of $147.66.

The firm’s supply chain checks indicate potential upside to Dell’s artificial intelligence server momentum through fiscal year 2026 and possibly beyond. Dell has formally guided for AI server revenues of $15 billion or more for the current year and expects to ship approximately $7 billion of AI servers in the July quarter. This represents significant growth potential for the company, which generated $96.7 billion in revenue over the last twelve months with a 7.75% growth rate.

According to Evercore ISI, demand momentum remains strong with multiple Tier-2 cloud players driving upside. Dell’s key customers include xAI and Coreweave, and the company is incrementally ramping up capacity with Oracle as well. Want deeper insights? InvestingPro offers a comprehensive research report on Dell, part of its coverage of 1,400+ top US stocks, providing expert analysis and actionable intelligence.

The research firm estimates Dell could achieve AI server revenues in the $17-20 billion range for the year, compared to current expectations of $15 billion or more. This would imply a quarterly revenue run-rate of $4.1-5.6 billion in the second half of the year.

Evercore ISI notes the upside is coming from incremental allocation at key neo-cloud partners coupled with new customer ramps, with an element of upside being driven by improved GB200 rack supply that is enabling better availability for high-end NVL72 racks.

In other recent news, Dell Technologies has seen several significant developments. Mizuho raised its price target for Dell to $160, citing stronger expectations for the company’s artificial intelligence server business. Similarly, BofA Securities increased its price target to $165, highlighting anticipated benefits from enterprise and sovereign AI growth over the next decade. Dell also announced updates to its AI Data Platform, enhancing inferencing capabilities and providing real-time access to large-scale unstructured datasets through collaboration with Elastic.

In a separate development, Dell reported the conversion of 3,421,793 shares of Class B common stock to Class C common stock by Silver Lake, with both classes carrying the same dividend and liquidation rights. Meanwhile, Dell’s stock experienced a decline following Super Micro Computer’s disappointing quarterly results, which indicated potential market share losses to larger competitors like Dell. These updates reflect Dell’s ongoing focus on AI and strategic share management amidst a competitive market landscape.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.