Dell jumps as Wall Street praises analyst day updates

[Dell Technologies American technology company, develops, sells, repairs, and supports personal computers (PCs), servers, data storage devices, network switches, software, Frankfurt - August 11, 2025]
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Dell Technologies (NYSE:DELL [https://seekingalpha.com/symbol/DELL]) shares rose 8% on Wednesday, as Wall Street analysts praised [https://seekingalpha.com/news/4502332-dell-soars-after-raising-long-term-revenue-eps-targets-amid-ai-boom] the IT giant's updates at its financial analyst day, including further disclosure about the artificial intelligence spending boom.

KeyBanc Capital Markets analyst Brandon Nispel said he left the event “feeling more positive” about Dell's ability to drive AI-related growth, and that its Infrastructure Solutions Group “appears well-positioned to capitalize on spend by enterprises, sovereigns, and Tier 2 [cloud service providers], which led to revenue guidance upside.”

“Additionally, we're encouraged with Dell's focus regaining share in [Client Solutions Group], though are still somewhat skeptical of the cycle. Stepping back, we like Dell's strategic positioning, growth outlook, and return of capital, but expect continued gross margin pressure, see a premium valuation vs. history, and see more upside in less competitive areas in Hardware,” Nispel explained.

Raymond James analyst Simon Leopold said that Dell's long-term outlook for earnings per share growth of 15% and “nearly double” sales growth are good bits of news. However, there is some concern about margins.

“The [Infrastructure Solutions Group] growth target increased, while the [Client Solutions Group] outlook remains unchanged, resulting in a total long-term revenue growth outlook which improved to 7-9% from 3-4%,” Leopold wrote in a note to clients. He has an Outperform rating on Dell.

Morgan Stanley analyst Erik Woodring said the new long-term revenue growth targets were better than expected and “reflect a robust AI server outlook.”

“Our supply chain checks suggest there could even be upside to mgmt's implied 25% AI server revenue CAGR,” Woodring wrote in a note to clients. “AI mix shift will pressure margins, but initiatives inside core DELL ISG/CSG should be a partial offset over time.”

Woodring an Overweight rating and $144 price target on Dell, but added his bull case price target of $196 “remains in-play given strength of AI checks.”

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