UBS Raises Dell Technologies (DELL) Price Target on Strong AI Server Revenue Outlook

Dell Technologies Inc. (NYSE:DELL) ranks among the best consumer electronics stocks to buy now. On October 8, UBS maintained its Buy rating on Dell Technologies Inc. (NYSE:DELL) and increased its price target from $155 to $186. The 20% rise is the result of UBS’s forecast that AI server revenue will expand by 20% to 25% in a sustainable manner without experiencing a major decline in operating margins.

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Dell Technologies Inc. (NYSE:DELL) has lifted its earnings per share growth prediction to 15+%, topping the firm’s previous 10+% projection, and increased its long-term revenue growth objective to 7%-9%, surpassing UBS’s previous 6%-8% projections.

In order to address some AI margin worries that have impacted Dell’s multiple, UBS has revised its long-term EPS compound annual growth rate prediction to at least 12%, which is 500 basis points faster than its previous target of 7%.

Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, and maintains a number of IT infrastructure products, including workstations, laptops, desktop computers, mobile devices, storage solutions, software, and cloud services.

While we acknowledge the potential of DELL to grow, 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 this cheapest AI stock.

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