BofA Raises Dell Price Target on AI Server Demand Outlook

Bank of America (BofA) analysts have revised Dell Technologies' stock price target upward, citing expectations of sustained strong demand for AI servers. The decision reflects confidence in the company's growth potential within the enterprise server segment. BofA projects that Dell's AI-focused server sales will increase significantly in the coming period. Analysts note that investments in AI infrastructure, particularly by large-scale cloud providers and enterprise customers, will positively contribute to Dell's revenue. In the firm's note, it was emphasized that Dell's current order backlog is robust, which enhances revenue visibility for upcoming quarters. Additionally, the assessment indicates that despite competition in the AI server market, Dell can maintain its market share. While raising the price target for Dell, BofA drew investors' attention to the potential gains the company could derive from the AI cycle. Analysts anticipate that growth in this area will support Dell's stock performance. This is not investment advice.