- New AI-powered products launched
- Server computer refresh on horizon
- Analysts see 35% upside to $180 target price
Analysts at Bank of America have called Dell Technologies (DELL:NYSE) one of the firm’s top investment ideas after adding the stock to their US 1 List.
In a note to clients, Bank of America raised its target price for Dell shares to $180 from $130, citing a positive outlook for the company heading into 2025.
The analysts flagged factors such as AI (artificial intelligence) server demand, storage demand from an expected IBM (IBM:NYSE) mainframe refresh, and demand from an anticipated upgrade to PCs used by millions at work and home.
NEW AI-POWERED KIT
Dell has recently introduced its Dell AI Factory and expanded its AI portfolio, launching them in May’s World 2024 event. They included five new AI-PCs that use the latest flash file storage, network architecture, and including other AI services bolt-ons.
‘We see these new products supporting Dell’s growth in calendar 2025’, Bank of America analysts wrote in the note to clients, echoing Shares own call to buy the shares late in June. Bank of America also flagged Dell’s possible inclusion in the S&P 500 as another catalyst for the stock.
Dell stock has gained steadily through 2024, although it came off sharply from record $179 peaks in May. Bank of America clearly believes the share price will reclaim those levels over the coming months.
