AI and Non-AI Servers Demand Leads to a Bullish View Around Dell Technologies (DELL)

Dell Technologies Inc. (NYSE: DELL ) is one of the 10 best computer hardware stocks to buy for the next 5 years .

On May 29, David Vogt of UBS significantly increased the price target from $243 to $440 for Dell Technologies Inc. (NYSE:DELL), resulting in a revised upside potential of almost 12%. The analyst also maintained his Neutral rating on the stock. It was pointed out by the analyst that Dell had made a spectacular quarter, which was largely powered by the demand for AI and non-AI servers.

But Vogt believes that, even though the stock is highly valued at present, investors will evaluate it based on the limited guidance it offers. The reasons for this cautious assessment include concerns about unsustainable CSG, ongoing supply issues, and projected lower earnings in the second half of the year.

On May 29, James Fish of Piper Sandler increased the target price for Dell Technologies Inc. (NYSE:DELL) from $167 to $497, leading to an adjusted upside of 26%. The analyst reaffirmed his Overweight rating on the shares. Fish highlighted that Dell's stock jumped 30% after-hours because they had what many have labeled as their "best quarter ever".

The main driver for such performance was the AI infrastructure demand, causing 88% year-over-year growth. According to Fish, such performance is not just a one-time case; rather, the company is witnessing strong growth in demand backlog and pipelines, which are growing faster than sales. However, some of this is because customers are ordering early due to supply chain issues across the tech industry.

Dell Technologies Inc. (NYSE:DELL) sells integrated solutions, products, and services internationally. The company provides comprehensive enterprise infrastructure, including all-flash and AI-optimized servers, professional consulting services, software-defined storage, hyper-converged solutions, and networking products. It also offers branded peripherals, extended warranties, client personal computing hardware, and flexible customer financing solutions.

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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