AI-Driven Growth and Margin Resilience Support Dell Technologies Buy Rating and $163 Price Target

Dell Technologies, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Wamsi Mohan from Bank of America Securities reiterated a Buy rating on the stock and has a $163.00 price target.

Wamsi Mohan has given his Buy rating due to a combination of factors that, in his view, support Dell Technologies’ growth and margin resilience despite near-term memory cost headwinds. He notes that while higher memory prices may exert pressure on gross margins in the short run, management is actively using pricing, cost controls, and mix optimization to protect full-year profitability. Strong and broad-based demand for AI servers from cloud providers, enterprises, and increasingly sovereign customers underpins his confidence, with enterprise-oriented AI deals and Dell’s ability to charge a premium versus peers helping sustain attractive margins. He also highlights that a large portion of the installed server base is older-generation, creating a compelling upgrade cycle driven by better power efficiency, space savings, and total cost of ownership, which can offset customers’ concerns about memory inflation.

Mohan further points to storage as a structural tailwind as AI moves from primarily training to more inference-heavy workloads, where Dell is well positioned with its own intellectual property and next-generation AI storage platforms. In the client solutions business, Dell’s strategy to expand its PC lineup—particularly with the refreshed XPS family and additional SKUs—aims to defend its presence in premium segments while capturing incremental share in lower-priced tiers without sacrificing profitability. Overall, he believes that the company’s diversified growth drivers, disciplined pricing approach, and multiple levers to manage memory-related cost pressures leave its long-term financial framework intact. This combination of robust AI/server and storage demand, improving PC positioning, and margin management underpins his Buy rating and supports a price objective of $163, implying meaningful upside from the current share price.

Based on the recent corporate insider activity of 152 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DELL in relation to earlier this year.