Dell Technologies' stock price has risen recently, and the driving force behind it is Morgan Stanley analysts' optimistic forecast for the company's AI server business. Analysts raised Dell's target share price and maintained a "overweight" rating, which shows that the market is confident in Dell's future development in the field of artificial intelligence. The forecast is based on expectations of significant growth in Dell AI server sales, as well as growing demand from enterprises and government agencies.
Dell Technologies (stock code: DELL) shares rose recently as Morgan Stanley analyst Erik Woodring raised its target price.
The adjustment is mainly based on optimistic expectations for the growth of Dell's artificial intelligence (AI) server sales. Morgan Stanley raised Dell's target share price from $136 to $154, maintaining its "overweight" rating on Dell.
Woodling expects Dell's AI server sales to reach about $20 billion in fiscal 2026, a 56% increase from previous expectations. This growth forecast means Dell's earnings per share could reach $10.50, 12% higher than Wall Street's current expectations. According to Woodlin's analysis, Dell's success in the AI server market is mainly due to the stable growth in customer demand, the increase in market share, and significant repurchase businesses from specific cloud service providers, such as Tesla, Companies such as xAI and CoreWeave.
In addition to strong demand from corporate AI customers, Woodlin also mentioned increasing attention from sovereign institutions, 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 2026 and calendar 2025 is unclear, Woodlin 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 Woodlin believes is crucial for Dell's continued growth in AI servers. 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' 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.
Key points:
Dell Technology's stock price rose, and Morgan Stanley raised its target price to $154, maintaining its "overweight" rating.
Dell is expected to achieve AI server sales of US$20 billion in fiscal 2026, an increase of 56%.
The new Nvidia Blackwell GPU will be delivered in early 2025, which is crucial to Dell AI server growth.
In short, Morgan Stanley's positive forecast has brought good news to Dell Technologies. Its strong growth momentum in the artificial intelligence server market and the upcoming new products have brought investors confidence, and future development is worth looking forward to.