Dell Technologies Price Target Raised to $172 with $60B AI-Server Revenue Outlook
Bank of America lifted Dell Technologies' price target to $172 from $155, raising full-year AI-server revenue forecast to $60 billion from $50 billion and Q1 estimate to $15 billion. The firm sees robust GB300-based AI-server demand and VR-rack shipments in H2, offset by mixed PC sales and optical fiber tightness.
1. Price Target and Forecast Upgrades
The firm increased its Dell Technologies price target to $172 from $155 and raised the full-year AI-server revenue forecast to $60 billion from $50 billion, while boosting the Q1 AI-server revenue outlook to $15 billion from $13 billion.
2. Strong AI-Server Demand Drivers
Checks highlighted robust demand for GB300-based AI servers, with most near-term revenue from these systems and additional VR-rack shipments anticipated in the second half of the year.
3. PC Market and Supply Constraints
Despite AI strength, mixed PC demand and persistent global optical fiber supply tightness may constrain hardware sales and introduce potential risks to second-half industry performance.
4. Valuation and Investor Implications
The upgraded forecasts suggest the firm’s $50 billion fiscal 2027 AI-server revenue guide could be conservative, potentially supporting Dell Technologies’ valuation and influencing bullish sentiment among investors.