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Analysts Boost Ratings and Targets as Dell’s (DELL) AI Server Momentum Surges

Dell Technologies Inc. (NYSE:DELL) is one of the best affordable AI stocks to buy now. On December 4, Dell Technologies Inc. (NYSE:DELL) announced a $0.525 quarterly cash dividend payable on January 30, 2026, to shareholders of record as of January 20, 2026.

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The company has increased its annual cash dividend by 18% in 2025 to $2.10, affirming its commitment to shareholder value. The dividend increase comes on the heels of the company’s AI-optimized server revenue, which beat expectations, topping $5.6 billion. Analysts at Piper Sandler have already reiterated their Overweight rating amid stronger-than-expected momentum in AI servers. AI server orders have already totaled $12.3 billion, exceeding market expectations.

Meanwhile, Mizuho raised its Dell price target to $175 from $170 on November 26, impressed by the company’s increase in its fiscal 2026 AI server revenue forecast to $25 billion from $20 billion. Server revenue in January is expected to top $9.4 billion, above consensus estimates of between $5.3 billion and $6 billion.

Dell’s AI server pipeline is experiencing robust growth, with the backlog increasing by 57% quarter over quarter in the third quarter to $18.4 billion. The research firm believes the AI pipeline has risen to $60 billion from a previous estimate of $38 billion.

Dell Technologies Inc. (NYSE:DELL) provides comprehensive Artificial Intelligence (AI) solutions through its Dell AI Factory initiative, which involves producing specialized hardware, software, and services to help customers manage the entire AI lifecycle. Their primary focus is on building the infrastructure (the “engines of intelligence”) that powers AI applications for other businesses.

While we acknowledge the potential of Dell Technologies Inc. (NYSE:DELL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 15 Best Biotech Stocks to Buy According to Wall Street Analysts and 9 Cheap Oil Stocks Under $10 to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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