Dell Stock Gained 87% In 2023 And There's Further Upside Thanks To AI, Analyst Says

Shares of Dell Technologies Inc DELL climbed in premarket trading on Monday, Jan. 8.

The Round Rock, Texas-based company is poised to gain from the “AI-driven compute investment cycle,” which is expected to benefit branded server companies, according to JPMorgan.

The Dell Technologies Analyst: Samik Chatterjee upgraded the rating for Dell Technologies from Neutral to Overweight, while raising the price target from $77 to $90.

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The Dell Technologies Thesis: Although the company is unlikely to be perceived as a main beneficiary of an AI investment cycle, all server companies are poised to benefit from the sale of higher-end servers with upside to average selling prices and operating margins, Chatterjee said in the upgrade note.

“We are raising our revenue and earnings forecasts for DELL in FY26 (ending January 2026) as we have higher confidence in the sustainability of a stronger growth rate in the ISG group led by a stronger compute investment cycle, which sets up the company for double-digit earnings growth as the company cycles past the macro pressures on PCs as well as General purpose servers,” the analyst wrote.

While the stock gained 87% in 2023, there is further upside “stemming from attributing a higher target valuation multiple to the shares relative to its historical average on account of the leverage to AI investments, while a strong rebound in PCs (led by robust refresh cycle) as well as uplift from adoption of AI PCs can provide further upside to our estimates,” he added.

DELL Price Action: Shares of Dell Technologies had risen by 2.85% to $78.00 in premarket trading on Monday.

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