Dell Technologies (DELL, Financials) shares are on the upswing on Monday after Morgan Stanley (MS, Financials) increased its price target on the stock, driven by expectations of growing sales in artificial intelligence servers.
Reiterating an Overweight rating and noting robust expected growth in artificial intelligence server sales, Morgan Stanley analyst Erik Woodring boosted Dell's price objective to $154 from $136. With Woodring's revised estimate of Dell's AI server sales reaching about $20 billion in fiscal 2026—a 56% rise from Morgan Stanley's earlier forecasts—this indicates a change from With this income increase, profits per share might reach $10.50, or 12% more than Wall Street projections now call for.
According to Woodring's research, Dell's progress in the AI server market is ascribed to consistent client demand, increasing market share, and notable repeat business from big Tier-2 cloud service providers like Tesla, xAI, and CoreWeave. Along with demand from corporate-level AI consumers, he also emphasized growing interest from sovereign institutions such Middle Eastern wealth funds and U.S. government agencies.
Although certain shipping information pointing into fiscal 2026 and calendar year 2025 remain unknown, the analyst said that Dell's position in the AI server market seemed solid. Early 2025 marks the first delivery of Nvidia's (NVDA, Financials) Blackwell GPUs for the firm, which Woodring believes to be absolutely vital for Dell's continuous AI server growth.
