Dell Technologies Inc (NYSE:DELL) shares are trading higher Wednesday, likely driven by positive analyst commentary and investor anticipation ahead of the company’s analyst meeting on Oct. 7.
What To Know: Bank of America Securities kept its Buy rating on Dell and raised its price target to $170 from $167 on Wednesday, suggesting about 20% upside from current prices. The firm sees multiple growth opportunities ahead for the company.
BofA analyst Wamsi Mohan pointed to Dell’s growing AI server business, which the company expects to hit $20 billion in fiscal 2026. The analyst projects Dell could generate another $65 billion in AI server sales over five years, driving 12% annual revenue growth and 15% earnings growth. Mohan suggested the forecast may be conservative given Dell’s current momentum.
Beyond AI servers, BofA sees potential gains in Dell’s storage business, where the company could win back market share. Storage has roughly 20% profit margins, making growth in this area especially valuable. The analyst also noted opportunities from PC upgrade cycles and new demand for AI-powered computers.
Investors may be positioning ahead of next week’s analyst meeting, where Dell is expected to share updated long-term targets. The BofA analyst expects the company to guide for 9% to 11% revenue growth, with its server business growing 10% to 12% and PC sales growing in the low-to-mid single digits. Mohan also expects Dell to project earnings growth of 13% to 15%.
BofA adjusted its fiscal 2027 and 2028 estimates slightly higher to reflect stronger AI server momentum heading into the event.
DELL Price Action: Dell Technologies shares were up 3.66% at $146.97 on Wednesday at the time of publication, according to Benzinga Pro.
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