Dell Technologies (DELL): Valuation in Focus After Bullish Analyst Coverage and Surge in AI Infrastructure Momentum

Dell Technologies (NYSE:DELL) recently caught Wall Street’s attention after Piper Sandler began coverage with an upbeat outlook. This development comes as Dell launches new advancements in its AI Data Platform and further ramps up AI server sales amid ongoing industry shifts.

See our latest analysis for Dell Technologies.

Momentum has gathered pace for Dell Technologies, with a 24% one-month share price return and 39% year-to-date rally, driven by a series of positive developments in AI infrastructure and financial strength. Over the past three years, the total shareholder return has increased nearly 350%, reflecting sustained optimism and Dell’s ability to capitalize on emerging enterprise tech trends.

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Yet with shares staging such a sharp rally and Dell trading just below its latest analyst price targets, the question is whether the strong outlook has been fully priced in or if there is still meaningful upside for investors willing to bet on the next phase of AI-fueled growth.

Most Popular Narrative: 10% Undervalued

With Dell Technologies closing at $162.19 and the most followed narrative estimating a fair value near $180, recent upside appears to have room left, especially as analysts factor in stronger growth potential.

The rapid expansion of Dell's enterprise AI customer base and increasing enterprise-specific offerings (such as integrated AI factory solutions and PCIe options) improve both revenue visibility and margin potential. Enterprise customers typically require higher-value, higher-margin services and infrastructure. Persistent growth in global data creation and analytics, along with the expansion of remote and hybrid work, is driving demand for scalable compute, storage, and commercial PCs. This underpins sustained growth in Dell's core product lines and supports multi-year top-line growth.

Read the complete narrative.

What is driving the bullish target? One bold set of assumptions about how Dell’s evolving business mix could unlock a new level of profitability, and it is hiding in plain sight. Find out the surprising strategic shifts and projected growth numbers that have analysts more optimistic than ever.

Result: Fair Value of $180 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent margin pressures in Dell's traditional hardware business and slower than expected recovery in enterprise server demand could quickly challenge the bullish thesis.

Find out about the key risks to this Dell Technologies narrative.

Build Your Own Dell Technologies Narrative

If you see Dell Technologies differently or would rather dig into the numbers yourself, it only takes a few minutes to craft your own narrative, so why not Do it your way?

A great starting point for your Dell Technologies research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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