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The artificial intelligence server business will drive Dell Technologies shares higher, according to Barclays. The bank upgraded the PC and server stock to overweight from equal weight. It maintained its $148 price target on shares, implying about 25% upside from Wednesday’s close. “We are more positive on DELL given the strength in AI server orders, stability of AI op margins, expanding opportunities in enterprise server and storage, and DELL’s consistent disciplined opex management,” analyst Tim Long said in a note to clients. DELL 1Y mountain Dell 1-yr chart Dell plans to ship roughly $9.4 billion worth of AI servers in the fourth quarter, bringing the value of its shipments to $25 billion in the full year. “While GM is still likely in the HSD range, we think this is largely understood, and are encouraged that the company is managing to MSD op margins for the business,” Long wrote. According to Barclays’ projections, Dell’s AI server business will grow by about 155% in the next two years. The hardware company is also likely to notch margin growth due to its strong operational expense management. As a result, analysts expect Dell’s earnings per share to increase by 20% going into 2027. Barclay’s call is in line with the consensus on Wall Street. Of the 26 analysts covering Dell, 19 have a buy or strong buy on shares, LSEG data shows. The stock has risen nearly 9% over the past 12 months.
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