Dell Stock Soars: Morgan Stanley Raises Price Target Amid AI Boom

Morgan Stanley has boosted its price target for Dell Technologies (DELL) to $170 from $110, though it maintains an Underweight rating on the stock, which has seen a remarkable 120% surge in the past year. The firm anticipates a robust first half of the fiscal year, projecting that Dell will report strong first-quarter results and provide above-consensus second-quarter guidance next week. Driven by resilient server demand, enterprise pull-forward in compute markets, PC share gains, and AI server outperformance, Morgan Stanley expects management to raise full-year earnings per share guidance to over $13.50 from $12.90. However, concerns linger regarding Dell's valuation; the stock currently trades at 17.2 times the firm's fiscal 2028 earnings estimate, a 30% premium over AI infrastructure peers, an all-time high. In recent developments, Dell unveiled new infrastructure products, including the PowerStore Elite storage platform with enhanced performance and data reduction, alongside a deskside agentic AI solution with NVIDIA. Analyst firms like Bernstein and Evercore ISI have responded positively to these innovations, raising their price targets to $280 and $270, respectively, reflecting confidence in Dell's strategic direction and product development.