Bank of America Raises Dell Price Target to $246 on AI CPU Demand
Bank of America lifted Dell’s price target to $246 from $205, citing agentic AI’s shift to sequenced workflows that drive higher CPU-intensive server demand. Dell is estimated to capture about 12% of a projected $496 billion AI server market by 2026 and holds 11% OEM share in infrastructure solution stacks.
1. Price Target Revision
A major US investment bank raised Dell’s price target to $246 from $205 and reiterated a Buy rating, reflecting expectations of multiple expansion driven by stronger CPU demand in next-generation hardware offerings.
2. Agentic AI Driving CPU Demand
Agentic AI transforms single-step inferencing into sequenced workflows, increasing inference events per task and elevating CPU requirements across server infrastructures, benefiting Dell’s traditional server business alongside its AI server portfolio.
3. Market Share and Growth Projections
Dell is projected to secure about 12% of a $496 billion AI server market by 2026, with share gain momentum accelerating at Neo Clouds, and holds roughly 11% OEM share in infrastructure solution stacks as enterprise demand rises.