Dell jumps as Wall Street lifts targets on AI-server backlog momentum
Dell Technologies shares rose about 3.3% as new analyst price-target hikes highlighted accelerating AI-server demand and a growing Nvidia Blackwell-driven backlog. A Wells Fargo note lifted its target to $160 from $140, while Mizuho reiterated Outperform and raised its target to $215.
1) What’s driving the move
Dell Technologies (DELL) traded higher Monday as investors reacted to fresh Wall Street optimism around Dell’s AI server business. The catalyst was a cluster of analyst notes raising price targets and emphasizing sustained demand for AI infrastructure, with particular focus on Nvidia Blackwell-related backlog expansion and improving profitability in Dell’s Infrastructure Solutions Group (ISG). (tipranks.com)
2) The analyst calls behind the rally
Wells Fargo raised its price target on Dell to $160 from $140 and maintained an Overweight rating, pointing to ISG operating margin upside tied to Blackwell-driven AI server backlog expansion, a recovery in traditional server demand, storage seasonality, and ongoing capital return strength. Separately, Mizuho raised its price target to $215 from $180 while reiterating Outperform, citing strong AI server demand into 2026–2027 and broader AI data-center capex tailwinds. (tipranks.com)
3) What to watch next
Near-term upside will hinge on whether Dell can keep converting AI server orders into revenue without delays and whether ISG margins continue to improve as mix shifts toward higher-value rack-scale and AI-optimized configurations. Traders will also watch for incremental updates on backlog, enterprise AI infrastructure pipeline strength, and any signs of share gains as customers prioritize large, proven suppliers for time-sensitive AI buildouts. (tipranks.com)