At Extreme Investor Network, we are always on the lookout for unexpected trends in the investing world that could lead to major gains. This week, Dell Technologies caught our eye as a major beneficiary of artificial intelligence (AI) tailwinds. As Wall Street applauded Dell for topping quarterly estimates, with server sales surging 80% thanks to the AI momentum, the stock saw a 1% increase. This unexpected growth outperformed the AI darling Nvidia, which saw an 8% decline after reporting a drop in gross margins.
Analysts are bullish on Dell’s future prospects, with Morgan Stanley’s Erik Woodring noting the momentum in Dell’s AI server business and the improvement in infrastructure solution group margins. With an overweight rating and a price target of $176 (implying 59% upside), Woodring is particularly excited about Dell’s potential for strong gains ahead.
Bank of America’s Wamsi Mohan also raised his price target to $155, reflecting a 40% upside from Thursday’s close. He reiterated his buy rating, citing early-stage AI adoption, margin growth, and an impending AI PC upgrade cycle. These forecasts are above the average analyst price target, which calls for 36% upside according to FactSet.
JPMorgan’s Samik Chatterjee shares the optimism, highlighting Dell’s focus on operating expenses and double-digit revenue opportunities within its core business. Chatterjee believes Dell has a “robust earnings growth trajectory” not yet reflected in its current share price. With an overweight rating and a price target of $160 (44% gain), Chatterjee sees significant potential for Dell to thrive in the AI market.
While some analysts remain cautiously optimistic about Dell’s future, such as Barclays analyst Tim Long who retained an equal-weight rating, there is undeniable excitement surrounding Dell’s AI momentum and growth prospects. Here at Extreme Investor Network, we believe Dell’s unexpected success in the AI space makes it a stock worth keeping a close eye on for potential investment opportunities. Stay tuned for more exclusive insights and analysis on the latest trends in the investing world.