Wells Fargo Maintains Overweight on Dell Technologies, PT Raised to $160

Wells Fargo Maintains Overweight on Dell Technologies, PT Raised to $160

Wells Fargo has maintained an overweight rating on Dell Technologies (DELL) and raised its price target to $160, reflecting the company's strong performance in the AI server market. The move comes after Dell Technologies reported its second-quarter fiscal 2026 financial results, which exceeded market expectations, with revenue and profit both surpassing analyst estimates [1].

Despite the strong second-quarter performance, Dell Technologies' stock price fell by more than 5% in after-hours trading following the release of its third-quarter earnings per share guidance, which was below analyst expectations. The company also experienced a significant quarter-on-quarter decline in AI server orders and infrastructure gross margins that fell short of analyst predictions [2].

Dell Technologies' AI server business has been a key driver of growth, with the company forecasting annual AI server shipments to reach $20 billion, doubling year-on-year. However, the market remains cautious regarding the company's profitability due to high costs and heavy reliance on chip supplies. The continued weakness in the PC business has further intensified market concerns [2].

Wells Fargo analysts have noted the strong demand for AI servers and the company's position as the world's No. 1 provider of AI infrastructure. They believe that the company's AI server business will continue to grow, driving long-term profit growth. The analyst team maintained a buy rating on Dell Technologies, with a price target of $160, reflecting their bullish outlook on the company's future performance [3].

References:
[1] https://stockanalysis.com/stocks/dell/
[2] https://news.futunn.com/en/post/61346716/dell-technologies-revenue-and-profits-exceeded-expectations-but-ai-server
[3] https://seekingalpha.com/article/4279472-dell-technologies-picks-up-steam-in-ai-server-sales