Bank of America (BAC) says that Dell Technologies’ (DELL) revenue from its artificial intelligence (AI) servers and other AI infrastructure products could double in coming years.
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Wamsi Mohan, a top five-star rated analyst, is bullish on DELL stock after the company’s latest financial results were released. In a note to clients discussing the company’s print, Mohan wrote: “When you look out to next year, I think they’re in a position where they could even double their AI revenues.”
The comments come as DELL stock rises 7% after delivering mixed financial results for its fiscal third quarter, but providing optimistic guidance. Mohan currently has a Buy rating and $160 price target on DELL stock, which is 27% higher than where the shares currently trade.
Dell’s Bullish Outlook
Management at Dell Technologies said the company is benefiting from rising demand for its AI servers that are used in data centers around the world. As part of its latest earnings report, Dell raised its forecast for AI server sales this year to $25 billion from $20 billion previously.
Dell also said that it now expects $31.5 billion of total sales in the current fourth quarter, which is above the $27.59 billion that analysts had anticipated. Earnings per share in the current quarter is estimated at $3.50, which is ahead of the $3.21 forecast on Wall Street.
Is DELL Stock a Buy?
The stock of Dell Technologies has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on 12 Buy, four Hold, and one Sell recommendations issued in the last three months. The average DELL price target of $167.27 implies 24.45% upside from current levels.
