Dell stock price target raised to $180 from $160 by Evercore ISI

Investing.com - Evercore ISI raised its price target on Dell (NYSE:DELL) to $180.00 from $160.00 on Monday, while maintaining an Outperform rating on the stock. Dell currently trades at $160.95, near its 52-week high of $167.94, with InvestingPro data showing the stock has delivered a strong 72.59% return over the past six months.

The price target increase follows cloud service provider IREN’s announcement of a five-year contract with Microsoft worth approximately $9.7 billion to provide GB300 GPU systems. As part of this arrangement, IREN will purchase GPUs and ancillary equipment from Dell for approximately $5.8 billion, a significant win for the $108 billion market cap technology hardware company.

The GB300 systems are expected to be deployed in phases through 2026 at IREN’s 750MW Childress, Texas campus. Approximately 85% of the $5.8 billion award is expected to go toward compute systems, with the remaining 15% allocated to ancillary equipment including deployment services, InfiniBand, cabling, software, and licensing costs.

Evercore ISI noted that this program win expands Dell’s Tier-2 customer base, which already includes CoreWeave and xAI. The IREN program represents approximately 25% of Dell’s total AI server revenue guide for this year.

Dell will handle the full delivery and integration of the systems for its customers, with Evercore ISI expecting continued rapid growth from the expansion of Dell’s customer base into Tier-2 providers, sovereigns, and eventually enterprise customers.

In other recent news, Dell Technologies has announced significant advancements to its AI Data Platform, aiming to help enterprises transform distributed data into actionable insights for artificial intelligence applications. The enhancements include improvements to Dell PowerScale and Dell ObjectScale storage engines, which are designed to deliver enhanced performance and scalability for demanding AI workloads. Additionally, Dell has expanded collaborations with NVIDIA, Elastic, and Starburst to further bolster its data engines capabilities. Meanwhile, Raymond James has raised its price target on Dell to $161 from $152, maintaining an Outperform rating. UBS also increased its price target for Dell to $186 from $155, citing expectations of sustainable growth in AI server revenue. Both firms highlight the potential for Dell’s AI initiatives to drive future performance. In another development, Alienware and Twitch have launched an interactive gaming experience at New York City’s Grand Central Terminal, creating an immersive portal for participants. These recent developments underscore Dell’s strategic focus on AI and collaborative innovations.

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