Dell Stock Gained 87% In 2023 And There's Further Upside Thanks To AI, Analyst Says
Portfolio Pulse from Priya Nigam
Dell Technologies Inc (NYSE:DELL) shares rose in premarket trading on Jan. 8 due to a positive outlook from JPMorgan. Analyst Samik Chatterjee upgraded Dell from Neutral to Overweight and increased the price target from $77 to $90, citing the potential benefits from the AI-driven compute investment cycle. Chatterjee expects Dell to benefit from higher-end server sales, leading to increased average selling prices and operating margins. The upgrade reflects higher revenue and earnings forecasts for Dell in FY26, with the potential for double-digit earnings growth as the company moves past current macro pressures.
January 08, 2024 | 4:52 pm
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Dell Technologies Inc's stock received an upgrade from JPMorgan analyst Samik Chatterjee, who raised the rating to Overweight and increased the price target to $90. The upgrade is based on the anticipated benefits from the AI-driven compute investment cycle, which is expected to boost sales of higher-end servers and improve Dell's financial performance.
The upgrade by JPMorgan is a strong positive signal for Dell's stock, as it reflects an expectation of increased demand for higher-end servers driven by AI investments. This is likely to lead to higher average selling prices and operating margins, which can significantly impact Dell's financial performance. The analyst's confidence in the company's growth prospects, especially in the ISG group, and the potential for a strong PC rebound, further support the positive outlook. The stock's 87% gain in 2023 indicates strong market momentum, which could be bolstered by this upgrade.
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