Dell Technologies, Inc. Class C (DELL.US) soared by 9% in a single day, receiving praise from Wall Street for telling a great AI story!

On Wednesday, Dell Technologies, Inc. Class C technology (DELL.US) saw its stock price surge by over 9%. Prior to this, at a financial analyst conference hosted by the company, this tech giant announced several latest developments, including further disclosures on the spending spree in artificial intelligence (AI), which received widespread praise from Wall Street analysts. Analyst Brandon Nispel from KeyBanc Capital Markets stated that the event made him "more optimistic" about Dell Technologies, Inc. Class C's ability to drive growth in AI. He pointed out that Dell Technologies, Inc. Class C's Infrastructure Solutions Group (ISG) is "in a favorable position in capturing opportunities in enterprise, national sovereignty, and secondary cloud service provider spending, which led the company to raise its revenue guidance." Nispel further analyzed, "In addition, Dell Technologies, Inc. Class C's efforts to reclaim market share in the Client Solutions Group (CSG) also signal positivity, although we remain somewhat skeptical of the current industry cycle. Overall, we acknowledge Dell Technologies, Inc. Class C's strategic positioning, growth prospects, and capital return capabilities, but we expect the company's gross profit margin to continue to face pressure; at the same time, its current valuation is at a premium range compared to historical levels, and niche sectors with weaker hardware competition may have greater upside potential." Analyst Simon Leopold from Raymond James believes that Dell Technologies, Inc. Class C's long-term EPS growth target of 15% and "almost doubling" sales growth expectations are positive news. However, he also expressed some concerns about the company's profit margins. Leopold wrote in a client report, "The growth target for the ISG business has been raised, while the outlook for the CSG business remains unchanged, leading to an increase in the company's overall long-term revenue growth rate expectations from 3%-4% to 7%-9%." Currently, he rates Dell Technologies, Inc. Class C stock as "outperform." Morgan Stanley analyst Erik Woodring stated that Dell Technologies, Inc. Class C's newly announced long-term revenue growth targets exceeded market expectations and "reflect a strong outlook for the AI server business." Woodring pointed out in a client report, "Our supply chain research indicates that the 25% compound annual growth rate (CAGR) in AI server business hinted at by Dell Technologies, Inc. Class C management may even have further room for upward revision. While the increase in the proportion of AI business may put pressure on profit margins, over time, optimization measures within Dell Technologies, Inc. Class C's ISG and CSG core business should be able to offset this pressure to a certain extent." Currently, Woodring has a "hold" rating for Dell Technologies, Inc. Class C with a target price of $144. Additionally, he added, "Given the strong momentum shown in the research on the AI business, the previously set bullish target price of $196 still remains achievable."