The editor of Downcodes learned that Dell Technologies’ stock price has risen recently, mainly due to Morgan Stanley analysts’ optimistic expectations for Dell’s AI server sales. Analyst Eric Woodring raised Dell's target share price to $154 and maintained an "overweight" rating, which undoubtedly gave investors a boost. He predicted Dell's AI server sales will reach about $20 billion in fiscal 2026, which would be a 56% increase compared with previous expectations.
This adjustment is mainly based on optimistic expectations for Dell's artificial intelligence (AI) server sales growth. Morgan Stanley raised its target share price for Dell from $136 to $154, maintaining its "overweight" rating on Dell.
Woodring expects Dell's AI server sales to reach about $20 billion in fiscal 2026, a 56% increase from previous expectations. The forecast increase means Dell could earn $10.50 per share, 12% higher than Wall Street's current forecast. According to Woodring's analysis, Dell's success in the AI server market is mainly due to the steady growth of customer demand, the improvement of market share, and significant repurchase business from specific cloud service providers, such as Tesla (Tesla), xAI and companies like CoreWeave.
In addition to strong demand from enterprise AI customers, Woodring cited growing interest from sovereigns, including wealth funds in the Middle East and U.S. government agencies. This shows that Dell is gaining more and more recognition and opportunities in this emerging market. Although some shipment information for fiscal year 2026 and calendar year 2025 is still unclear, Woodring still believes that Dell's position in the AI server market is relatively stable.
It is worth mentioning that Dell will deliver Nvidia’s Blackwell GPU for the first time in early 2025, which Woodring believes is critical to Dell’s continued AI server growth. The introduction of this new product is expected to further boost the company's market performance and consolidate its competitiveness in the AI field.
Morgan Stanley's analysis has injected investors with confidence in Dell's future development prospects, especially in the context of increasing demand for AI servers, Dell is expected to achieve a greater leap.
Morgan Stanley's positive forecasts and optimistic estimates of the future development of the AI server market have provided strong support for Dell's future development. Dell's strategic layout and technical strength in the field of AI make it expected to stand out in the fierce market competition. Let’s wait and see Dell’s wonderful performance in the AI era!