BofA Raises Dell Technologies Target Amid AI Tailwinds By Investing.com

BofA raised its price target for Dell Technologies (NYSE to $98 from $82 per share in a note on Friday, maintaining a Buy rating on the stock.

Analysts at the bank, ahead of the company's Feb. 29 earnings release, noted that Dell recently reported strong data center revenue and spoke of strong ai-related demand, which should sustain for years.

“For DELL, we see continued momentum in the server business and expect orders to continue growing in the fourth quarter,” BofA said. “Given its focus on enterprise versus hyperscale, Dell should see strong demand as enterprises begin to fine-tune trained ai models and then scale up inference with those models.”

Furthermore, analysts believe that although the overall recovery of the PC market is slower than they had originally anticipated, DELL should benefit in the second half of this year from the launch of ai PCs.

“ai benefits from improving FCF and benefits from the negative cash conversion cycle as PC revenue continues to grow,” the company added.