Dell Technologies (NYSE:DELL), widely reputed for its personal computers and related products, scored a bullish prediction from TF International Securities analyst Ming-Chi Kuo. As a result, Dell shares gained over 2% in Monday’s trading session.
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Indeed, Kuo wrote in a post that he expects Dell to benefit in the long term from the ongoing rise in artificial intelligence servers. The analyst pointed to the AI gold rush, seen particularly this year, and predicted that Dell’s AI-related revenue could continue growing in 2024.
Furthermore, the analyst believes Dell will see a rise in its overall server shipments in 2024, following a 10% year-over-year fall in 2023. Meanwhile, Kuo explained that the reason why Dell had impressive figures in its last quarterly report was due to its booming AI orders, especially its PowerEdge servers.
In fact, in its Q2 FY2024 report, Dell said its revenue benefited significantly from its AI servers. As a result, the company plans to double down on its AI business and has reportedly requested a significant production expansion of roughly 200%.
Is DELL Stock a Good Buy Now?
With 10 Buys, two Holds, and one Sell, DELL stock has a Moderate Buy consensus rating. Further, the average DELL stock price target of $72.75 implies 1.82% upside potential from current levels.
