Morgan Stanley: Dell Technologies, Inc. Class C technology (DELL.US) AI server revenue increases, target price raised to $154.

Morgan Stanley has raised its target price for Dell Technologies, Inc. Class C (DELL.US) from $136 to $154, while maintaining a "neutral" rating, citing an increase in sales of the company's artificial intelligence servers. Analyst Erik Woodring of Morgan Stanley wrote in a report to clients, "The momentum of Dell Technologies, Inc. Class C's artificial intelligence servers remains strong. Our recent survey indicates that revenue from AI servers in 2026 is approximately $20 billion, 56% higher than Morgan Stanley's previous estimate. This has driven the earnings per share forecast for 2026 to $10.50, 12% higher than the Wall Street consensus. Considering the competitive landscape, the possibility of a bullish scenario with about $40 billion in AI server revenue is also higher." Woodring stated that recent surveys show that Dell Technologies, Inc. Class C's momentum in AI servers is earlier than any fluctuations related to Super Micro Computer, Inc. (SMCI.US). He added that he now has a clearer understanding of the outlook for the next 15 months. Woodring wrote, "This momentum is primarily driven by strong customer demand, broad stock appreciation, repeat purchases from a few large T2 CSP customers (Tesla, Inc., xAI, CoreWeave, etc.), as well as emerging sovereign (i.e. Middle Eastern sovereign wealth funds, U.S. government, etc.) and long-tail enterprise AI opportunities." He continued, "While some quarterly details about shipments for 2026/2025 are still unclear at the moment (but should become clearer over time), our surveys indicate that Dell Technologies, Inc. Class C remains in a favorable position as AI server momentum starts delivering the Blackwell series GPU in early 2025."