Street View: AI demand to boost Dell's growth

Cloud and client computing firm Dell Technologies' DELL.N shares rise 4.7% to $131.80

Co forecast Q4 profit and rev above estimates as investments in AI data centers boost demand for its servers

"We're in a very unique time. It's unprecedented. We have not seen costs move at the rate we've seen" - COO Jeff Clarke

Up to last close, stock has risen 9.3% this year

AI MOMENTUM DRIVES BULLISH CALLS

Citi ("buy," $175) says Dell's AI business is strong with AI-related revenues projected $5 billion higher than previously expected while consumer PCs may face minor instability

BofA ("buy," $163) says co will benefit from AI-driven demand across its servers, storage and PC segments, noting that Dell is investing in core growth areas while managing risks from a weak macro environment

Morgan Stanley ("underweight," $113) says the core debate on Dell is the impact of memory price inflation and supply shortages on demand and margins in FY27 - something Co has accounted for in its costing for all products

Morningstar ("4 stars," $150) says it is likely for Co to have an AI server backlog reaching $20 billion by the end of FY26, with the IREN data center deal set to enter the backlog next quarter; noting that $30 billion in AI revenue is achievable for 2027