Dell Technologies Inc. (NYSE:DELL) is one of the AI stocks on the market radar. On November 26, Morgan Stanley raised its price target on the stock to $113.00 from $110.00, while maintaining an “underweight” rating on the stock.
According to analysts at the firm, Dell’s strong AI server business is a standout, accounting for more than 100% of the company’s fourth-quarter revenue guidance increase and the majority of earnings per share (EPS) compared to firm and consensus estimates.
AI server orders increased more than 150% during fiscal 2026, reaching $30 billion in orders so far this year. Analysts believe this momentum will continue into fiscal 2027, with AI server revenue likely to increase 50% in fiscal 2027 to a total of $37 billion.
However, the company still has to deal with the memory supercycle, which is causing price increases and supply problems.
“AI servers are no longer the focus of the DELL debate – the impact of memory price inflation/supply shortages on demand and margins in FY27 (CY26) is. In our view, DELL properly contextualized how unprecedented this memory supercycle is, recognizing that its cost base is increasing for every product/that every product category will be affected by memory inflation.”
Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking and personal computing devices, to businesses and consumers around the world.
While we recognize DELL’s potential as an investment, we believe certain AI stocks offer greater growth potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None.