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Dell Named Leading OEM for AI Compute, Morgan Stanley Raises Price Target

Dell Technologies Inc. (NYSE:DELL) is one of the AI Stocks Analysts Are Tracking CloselyOn August 21, Morgan Stanley analyst Erik Woodring raised the price target on the stock to $144.00 (from $135.00) while maintaining an Overweight rating.

Analysts believe that the recent pullback in the shares offer a more compelling setup into earnings. July quarter results for enterprise hardware are expected to modestly outperform expectations driven by robust artificial intelligence spend and solid PCs in Q2. The firm also views upside to Dell’s Q2 estimates and full-year outlook.

According to Morgan Stanley, Dell is the leading OEM for AI compute, gaining share with key customers xAI and CRVV. Several other catalysts are working in favor of the stock, which is why the firm likes its long-term story.

“We continue to like DELL’s long-term story — the company is the clear leading OEM for AI compute and is gaining share with key customers xAI and CRVV, is back to gaining share in enterprise storage markets, is performing decently in traditional servers, and is in the middle innings of a company-wide cost efficiency program that we see driving 10%+ EPS growth over the next 3 years (vs. mgmt’s stated goal of 8%+). At $128, or ~10% lower than a week ago, DELL is trading at 11.3x our FY27/CY26 EPS, which is 5% above Consensus, and thus we see an opportunity for both multiple expansion and positive EPS revisions from here. That said, we see less upside to DELL vs. HPE over the next 12 months given DELL’s current valuation premium, unless we gain confidence that DELL Storage can be a secular grower (aided by AI attach), which is incorporated into our $196 bull case valuation. DELL’s October 7 Analyst Day will be the next major catalyst after F2Q earnings.”

While we acknowledge the risk and potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DELL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Must-Watch AI Stocks for Investors and 10 AI Stocks Analysts Are Tracking Closely

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

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

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

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

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • 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.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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