Last Wednesday, May 15, Dell shares rose by more than 11% after Morgan Stanley raised its price target and released a forecast that this technology company, based in Round Rock, Texas, will increase sales in the foreseeable future amid high demand for artificial intelligence servers.
Morgan Stanley analyst Erik Woodring said the mentioned firm is currently seeing accelerating momentum. In this context, the expert separately noted the company’s activities in developing artificial intelligence servers. The relevant business generates opportunities for Dell shares to grow in price. Erik Woodring upgraded his target price for the company’s shares to $152 from $128. The expert described the new level of the mentioned indicator as optimal.
Erik Woodring says that the intensity of Dell’s efforts in the area of making artificial intelligence servers exceeds the pace of a similar operation demonstrated by other manufacturers of analogous products. The expert predicts that the company’s revenue from the sale of the mentioned servers in the 2025 fiscal year, which ends in February next year, will amount to about $10 billion.
Dell shares on Wednesday showed growth, which turned out to be the largest since March 1, when Dell securities rose in price after earnings data from this firm testified that the manufacturer had become one of the beneficiaries of the so-called artificial intelligence boom.
Since the beginning of the current year, the company’s shares have increased in price by more than 99%. At the same time, the result of the competing manufacturer of artificial intelligence servers Super Micro Computer turned out to be more significant. The shares of this company have risen by 233% since the beginning of 2024.
Most artificial intelligence servers are built around Nvidia chips, which have become very popular products in the technology sector since microcircuits are necessary for the learning process and the subsequent functioning of AI systems. In the foreseeable future, the corresponding demand is most likely to remain, since the artificial intelligence area is in a condition of active development.
Dell sells servers that use Nvidia’s newest machine intelligence chips, including the H100 GPU and the latest generation of Blackwell microcircuits.
As we have reported earlier, Dell Characterizes Servers as Main Growth Engine in AI Era.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
