Dell Technologies (Stock Code: DELL) has recently seen its stock price rise due to Morgan Stanley analyst Erik Woodring raising the company's target price. This adjustment is primarily based on optimistic expectations for the growth in sales of Dell's AI servers.
Morgan Stanley has increased Dell's target stock price from $136 to $154, maintaining an "overweight" rating on the company. Woodring anticipates that Dell's AI server sales will reach approximately $20 billion in the fiscal year 2026, a 56% increase from previous expectations. This growth forecast implies that Dell's earnings per share could reach $10.50, 12% higher than current Wall Street expectations. According to Woodring's analysis, Dell's success in the AI server market is mainly due to steady growth in customer demand, market share improvement, and significant repurchase business from specific cloud service providers such as Tesla, xAI, and CoreWeave.
In addition to strong demand from enterprise AI customers, Woodring also mentioned increasing interest from sovereign institutions, including wealth funds in the Middle East and government agencies in the United States. This indicates that Dell is gaining more recognition and opportunities in this emerging market. Although certain shipment information for the fiscal year 2026 and the calendar year 2025 is still unclear, Woodring still believes that Dell's position in the AI server market is relatively solid.
It is worth noting that Dell will deliver Nvidia's Blackwell GPU for the first time in early 2025, which Woodring believes is crucial for Dell's ongoing growth in AI servers. The introduction of this new product is expected to further drive the company's market performance and strengthen its competitiveness in the AI field.
Morgan Stanley's analysis has instilled confidence in investors about Dell's future development prospects, especially given the increasing demand for AI servers, Dell is expected to achieve greater leaps.
Key Points:
💡 Dell Technologies' stock price rises; Morgan Stanley raises target price to $154, maintains "overweight" rating.
📈 Dell's AI server sales are expected to reach $20 billion in fiscal year 2026, a 56% increase.
🤖 New Nvidia Blackwell GPU to be delivered in early 2025, crucial for Dell's AI server growth.