Erik Woodring, an analyst from Morgan Stanley, maintained the Buy rating on Dell Technologies (DELL – Research Report). The associated price target remains the same with $128.00.
Erik Woodring has given his Buy rating due to a combination of factors that highlight Dell Technologies’ strong position in the AI infrastructure market. Dell’s AI Factory, which offers comprehensive system design and customization, is a significant competitive advantage as it meets the increasing demand for modular AI systems. This approach has allowed Dell to secure deals with major Tier 2 cloud service providers and over 2,000 enterprise customers, leading to substantial growth in its AI server business.
Woodring also notes that Dell’s strategic partnership with NVIDIA and its focus on end-to-end system customization differentiate it from competitors. By internalizing component design, such as liquid cooling, Dell optimizes its AI solutions, further solidifying its market position. Despite concerns about potential competition from server ODMs, Dell’s ability to offer tailored infrastructure solutions has kept it a preferred choice for customers, ensuring its continued relevance and growth in the AI server market.
In another report released on March 4, Loop Capital Markets also maintained a Buy rating on the stock with a $130.00 price target.
Based on the recent corporate insider activity of 142 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.
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