Dell Technologies Inc. (NYSE:DELL) is one of the Trending AI Stocks on Wall Street. On January 13, Goldman Sachs analyst Katherine Murphy assumed coverage on the stock with a Buy rating and a price target of $165.00. Firm analysts see AI server strength and data center recovery driving upside for DELL.
“We assume coverage of Dell Technologies (DELL) with a Buy rating (unchanged) and a 12-month target price of $165 reflecting 12x NTM+1Y EPS (vs. $185 reflecting 14x prior).”
Firm analysts believe Dell continues to be an AI winner with cyclical recovery tailwinds in its core data center hardware business. This momentum supports upside despite near-term headwinds in the PC market.
The firm added that even under cautious assumptions for PC demand and profitability, Dell offers upside to consensus sales and earnings estimates. This is driven by continued AI server momentum, recovery in core servers and storage at improving margins, as well as Dell’s ability to manage commodity cost headwinds better than peers.
The company can manage cost headwinds better because of its scale, large direct sales force, and business mix.
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide.
While we acknowledge the potential of DELL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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