Dell Technologies (NYSE: DELL) Price Target Set at $160 by Wells Fargo Analyst

• Aaron Rakers from Wells Fargo has set a price target of $160 for Dell Technologies (NYSE: DELL), indicating a potential increase of about 72.88%.
• Dell's focus on artificial intelligence (AI) and its appealing valuation offer growth opportunities despite recent challenges in the PC market.
• The company's revenue growth accelerated to 9% year over year in the fiscal second quarter, with a strong demand for AI servers boosting its financial performance.

On November 18, 2024, Aaron Rakers from Wells Fargo set a price target of $160 for Dell Technologies (NYSE: DELL). At the time, the stock was priced at $92.55, suggesting a potential increase of about 72.88%. Dell, a major player in the technology sector, offers a range of products from personal computers to enterprise solutions. It competes with companies like HP and Lenovo in the PC market and with firms like IBM and Cisco in enterprise solutions.

Dell Technologies has faced a challenging period, with its share price declining by 8.1% over the past six months. This drop is mainly due to a shrinking gross margin and a decrease in consumer PC shipments. However, the company's focus on artificial intelligence (AI) and its appealing valuation offer a potential opportunity for growth-focused investors. Despite recent setbacks, Dell's shares have surged by 85.3% over the past year, outperforming the Zacks Computer & Technology sector's 35.8% return.

A key factor in Dell's growth is the strong demand for AI servers, driven by digital transformation and interest in generative AI applications. The launch of the Dell AI Factory has been crucial, integrating solutions optimized for AI workloads. This initiative supports an open ecosystem with partners like NVIDIA and Microsoft, strengthening Dell's position in the AI sector. Dell's servers, which make up about half of its revenue, are in high demand, boosting the company's financial performance.

In the fiscal second quarter ending August 2, Dell's revenue growth accelerated to 9% year over year, up from 6% in the previous quarter. Analysts expect a 10% revenue increase for the full year, indicating continued momentum. The infrastructure solutions segment, including servers and networking, saw a 38% year-over-year revenue increase in fiscal Q2, offsetting a 4% decline in the PC business. This demand is expected to continue balancing the current weakness in PC sales, with recovery anticipated over time.

Dell Technologies plans to hold a conference call on November 26, 2024, to discuss its third-quarter financial results for fiscal year 2025. The call will be available as a live webcast on the company's investor relations website. Dell's current stock price is $131.64, reflecting a 2.08% decrease. Over the past year, the stock has reached a high of $179.70 and a low of $67.51, with a market capitalization of approximately $95.9 billion.