Dell Undergoes AI-Powered Changes, Goldman Analyst Ups Price Target

Dell Technologies Inc's (NYSE:DELL) expanding AI capabilities attract price target updates by these analysts.

• Goldman Sachs analyst Michael Ng maintained a Buy rating, while raising the price target from $130 to $140.
• BofA Securities analyst Wamsi Mohan reiterated a Buy rating, while lifting the price target from $155 to $165.

Check out other analyst stock ratings.

Goldman Sachs: Dell Technologies' AI lab is undergoing infrastructure changes to adapt to the latest needs, which indicates "the team’s agility in response to the rapid pace of innovation in AI," Ng said in a note.

The company reported AI server orders of $12.1 billion in fiscal Q1 and grew its backlog to $14.4 billion. "Despite the conversion of $12.1 billion of pipeline to AI server orders, DELL continued to grow its pipeline, illustrating the growing demand for AI systems," the analyst stated.

The higher price target reflects "our growing confidence in DELL’s competitive advantages in AI," the Goldman Sachs analyst added.

BofA Securities: Dell is poised to benefit from "the growth of enterprise /sovereign AI over the next decade," Mohan said. The company is likely to generate over 12% revenue growth over the next five years versus 2% over the prior five, he added.

Dell Technologies' earnings could double by 2030, with a CAGR (compounded annual growth rate) of 15%, the analyst stated. "Reit Buy as we are still in the early stages of AI adoption, strong storage attach and tailwind from overall and AI PC refresh," he further wrote.

Price Action: Shares of Dell Technologies had risen by 3.42% to $128.08 at the time of publication on Friday.

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