Shares of Dell Technologies (DELL) are rallying at the time of writing after investment firm Mizuho Securities raised its price target on the computer hardware company due to growing opportunities in the AI server market. Analyst Vijay Rakesh sees Dell gaining market share as Nvidia (NVDA) GPU supply increases and spending ramps up among Tier 2 cloud providers, along with enterprise and sovereign clients.
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In fact, these three groups are expected to contribute about 48% of the $300 billion AI server market by 2027. This would equate to an annual growth rate of 42%. In addition, Rakesh noted that AI server orders could increase further in the second half of 2025 with Nvidia’s GB300A Blackwell GPUs, which could potentially bring in orders from major players like Apple (AAPL).
As a result, the analyst increased Dell’s price target from $135 to $155 and maintained an Outperform rating. It’s worth noting that Rakesh is a five-star analyst with an average return of 12.2% per rating. However, Rakesh wasn’t the only one who raised his price target.
Wells Fargo Also Increases Price Target
Interestingly, Wells Fargo analyst Aaron Rakers also increased his price target from $140 to $160 while keeping an Overweight rating. Similar to Rakesh, he expects Dell to benefit from the growing demand for AI servers using Nvidia’s Blackwell GPUs and improving margins in its Infrastructure Solutions Group.
In addition, Rakers said that Dell’s strong financial position stands out thanks to over $5 billion in annual free cash flow, an investment-grade debt rating, and plenty of cash on hand. He believes this sets the company up for continued success.
Is Dell a Good Stock to Buy Now?
Overall, analysts have a Strong Buy consensus rating on DELL stock based on 15 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 89% rally in its share price over the past year, the average DELL price target of $145.71 per share implies 7% upside potential.
