Dell Technologies’ stock rose after Morgan Stanley raised its price target to $154 from $136, driven by strong growth expectations in artificial intelligence (AI) server sales. Analyst Erik Woodring forecasted that Dell’s AI server sales could reach $20 billion by fiscal 2026, marking a 56% increase from previous projections. This growth is expected to push Dell’s profits per share to $10.50, surpassing Wall Street’s current expectations.
Woodring attributed Dell’s success in the AI server market to consistent customer demand, expanding market share, and repeat business from major clients like Tesla and xAI. He also noted rising interest from sovereign wealth funds and U.S. government agencies. Although some shipping details for 2025 and 2026 remain unclear, Woodring is optimistic about Dell’s position, particularly with the upcoming delivery of Nvidia’s Blackwell GPUs, which are critical to its AI server expansion.
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