Deutsche Bank Boosts DELL to $144, Citing AI Server Momentum and Enterprise Growth

Deutsche Bank has reiterated its 'Buy' rating on Dell Technologies Inc. (DELL), setting a price target of $144. The investment bank highlights the increasing demand for AI-optimized servers and Dell's enterprise growth strategy as key drivers for the company's stock performance.

Dell's Infrastructure Solutions Group (ISG) has seen a significant boost in revenue, driven by the growing demand for AI-optimized servers. In the second quarter of fiscal 2025, ISG revenue surged 38% year over year, with server and networking revenue hitting a record $11.6 billion, up 80% from the previous year. This momentum is expected to continue, with AI-optimized server demand projected to reach $5.8 billion by the end of the fiscal year.

Dell's AI server momentum is not only driven by its own products but also by strategic partnerships. The company has recently partnered with Nokia to serve as its preferred infrastructure partner for Nokia AirFrame customers, transitioning them to Dell PowerEdge servers. This partnership is expected to expand Dell's enterprise customer base and contribute to its growth strategy.

Dell's focus on AI and edge computing is a crucial aspect of its enterprise growth strategy. The company's AI Factory offering, which includes the Dell PowerEdge XE9680 server with direct liquid cooling, is designed to help customers build generative AI solutions that meet performance, cost, and security requirements. This focus on AI and edge computing positions Dell to capitalize on the growing demand for AI-optimized servers and enterprise solutions.

In conclusion, Deutsche Bank's 'Buy' rating and $144 price target for Dell Technologies Inc. (DELL) reflect the company's strong AI server momentum and enterprise growth strategy. As the demand for AI-optimized servers continues to grow, Dell's strategic partnerships and focus on AI and edge computing are expected to drive further revenue growth and stock performance.