Tech company Dell Technologies (DELL) saw its stock rise on Monday after Morgan Stanley raised its price target due to stronger AI server sales. Analyst Erik Woodring now expects Dell’s AI server revenue to hit around $20 billion in FY26, which is 56% above previous estimates. In addition, EPS is expected to hit $10.50. As a result, Woodring raised his target from $136 to $154 and maintained an Overweight rating.
He noted that Dell’s AI server momentum predates any recent market volatility linked to Super Micro Computer (SMCI). Instead, it is driven by solid customer demand, market share growth, and ongoing purchases from major cloud service providers like Tesla (TSLA) and CoreWeave, as well as growing interest from sovereign funds and enterprise clients.
While some details on FY26 shipments are still not fully clear, the analyst highlighted that Dell is well-positioned to benefit from this AI server trend, especially with the upcoming Nvidia (NVDA) Blackwell GPUs set to ship in early 2025. It’s worth noting that, so far, Woodring has enjoyed a 77% success rate on DELL stock, with an average return of 64.5% per rating.
Is Dell Stock a Good Buy Now?
Turning to Wall Street, 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 88% rally in its share price over the past year, the average DELL price target of $144.59 per share implies 5.54% upside potential.
