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Dell Gains as Analysts Lift Targets on Surging AI-Server Demand

Bank of America now models $15 billion in AI-server sales this quarter.

Overview

  • Analysts boosted targets Tuesday after Dell beat fourth-quarter forecasts with $3.89 EPS on $33.4 billion in revenue.
  • Bank of America raised its price target to $172 and now projects $15 billion in AI-server revenue for the current quarter, up from $13 billion.
  • Bernstein reiterated an Outperform rating with a $180 target as shares trade near record highs following a near 30% gain this year.
  • Evercore kept an Outperform at $160 and warned that higher memory costs and tight optical fiber supply could pressure margins.
  • Dell reported an AI-server backlog of about $18.4 billion and increased shipment plans as PC sales showed signs of stabilizing.