AI server activity will drive shares of Dell Technologies higher, Barclays says. The bank upgraded PC and server stock from equal weight to overweight. He maintained his $148 price target on the shares, implying an upside of about 25% from Wednesday’s close. “We are more positive on DELL given the strength of AI server orders, stable AI operating margins, expanding opportunities in enterprise servers and storage, and DELL’s disciplined and consistent operations management,” analyst Tim Long said in a note to clients. DELL 1Y mountain Dell 1-year chart Dell plans to ship AI servers worth about $9.4 billion in the fourth quarter, bringing its shipment value to $25 billion for the full year. “While GM is still likely in the HSD range, we believe this is widely understood and we are encouraged that the company is achieving MSD operating margins for its business,” Long wrote. According to Barclays projections, Dell’s AI server business will grow approximately 155% over the next two years. The hardware company is also likely to see margin growth thanks to its strong operational expense management. As a result, analysts expect Dell’s earnings per share to rise 20% by 2027. Barclay’s call is in line with the Wall Street consensus. Of the 26 analysts covering Dell, 19 have a buy or strong buy on the stock, according to LSEG data. The stock is up nearly 9% over the past 12 months.
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