In a move that underscores the booming artificial intelligence sector, Evercore ISI has raised its price target on Dell Technologies Inc. to $160 from $150, maintaining an outperform rating. The upgrade, detailed in a recent analyst note, is driven by robust demand for Dell’s AI-optimized servers, with the firm citing supply-chain insights that point to sustained momentum well into fiscal 2026 and beyond.

Analyst Amit Daryanani highlighted Dell’s formal guidance projecting over $15 billion in AI server revenues for the year, including an expected $7 billion shipment in the July quarter alone. This optimism stems from strong orders from key customers such as xAI and CoreWeave, alongside expanding capacity with Oracle, signaling a broadening base of tier-2 cloud players fueling growth.

Supply-Chain Checks Reveal Upside Potential

Evercore’s analysis, based on proprietary supply-chain checks, suggests that Dell’s AI server business could exceed current expectations, potentially driving significant revenue upside. The firm notes that demand remains vigorous, with no signs of slowdown, positioning Dell as a critical player in the infrastructure underpinning AI advancements.

This view aligns with broader industry trends where AI workloads are increasingly reliant on high-performance computing hardware. Dell’s strategic focus on AI servers has already translated into a $14.4 billion backlog, as reported in earlier updates, reflecting how enterprises are accelerating their adoption of AI technologies to stay competitive.

Competitive Positioning and Customer Dynamics

Dell’s edge in this market is further bolstered by its partnerships and rapid capacity ramp-up. For instance, collaborations with emerging AI firms like xAI, founded by Elon Musk, and hyperscaler CoreWeave underscore Dell’s ability to capture diverse demand segments, from startups to established cloud providers.

However, challenges persist, including supply constraints in components like GPUs, which could temper growth if not managed effectively. Still, Evercore anticipates that Dell’s diversified portfolio, including traditional servers and storage, will provide a buffer, with AI revenues potentially comprising a larger share of overall earnings by 2026.

Analyst Consensus and Market Implications

This price-target hike echoes similar sentiments from other firms. For example, Mizuho recently boosted its target on Dell to $160, citing AI server growth prospects through fiscal 2027, as noted in a report from Investing.com. Meanwhile, Melius Research raised its target to $170, emphasizing long-term EPS growth tied to AI, according to updates on Investing.com.

For industry insiders, these upgrades signal confidence in Dell’s pivot toward AI infrastructure amid a tech sector increasingly defined by data-intensive applications. Yet, with Dell’s stock trading volatile amid broader market fluctuations, investors are watching upcoming earnings for confirmation of these projections.

Long-Term Growth Trajectory Amid Risks

Looking ahead, Evercore projects that Dell could achieve substantial margin expansion as AI server sales scale, potentially leading to earnings per share north of $19 by 2030, per insights shared in a Benzinga analysis at Benzinga. This outlook is tempered by macroeconomic factors, such as interest-rate sensitivity affecting enterprise spending.

Ultimately, Dell’s AI push represents a microcosm of the tech industry’s shift toward intelligent computing, with firms like Evercore betting on sustained demand to drive valuation reratings. As reported in the original story on MSN, this development highlights how AI is reshaping hardware giants, offering both opportunities and competitive pressures in an evolving market.