Earlier this week, we noted, “Keep an eye on oversold shares of Dell (DELL). After gapping from $180 to $132 on earnings, analysts are saying to buy the dip on Dell’s AI story.”
At the time, DELL traded at around $132. Today, it’s up to $136.27 and could soon refill its bearish gap at around $170. Bank of America and Morgan Stanley are still bullish on the tech stock, as is Argus, which just raised its price target to $150. From $130 a share.
As noted by Bank of America, “We reiterate Buy given that we are still in the early stages of AI adoption with continued strong pipeline and momentum around AI servers, where we think DELL will be able to capture higher AI margins over time (increased mix of Enterprise vs. CSP, and increased attack of Storage, Services).”