Dell Technologies (DELL) is back in the spotlight as a leading Wall Street firm raises its price target on the stock, citing continued strength in the company’s AI-driven growth and enterprise demand. Notably, five-star-rated analyst Simon Leopold from Raymond James lifted his price target on Dell stock from $139 to $144, while keeping his Buy rating. The bullish call comes amid growing investor interest in tech stocks benefiting from digital transformation and AI infrastructure spending.

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Dell Stock Gains Analyst Confidence

Leopold updated his outlook on Dell, pointing to challenges with new AI chips and changes in the PC market. Still, Dell’s stock is gaining, up over 10% in the past week, partly due to increased PC buying ahead of possible tariffs. While near-term AI sales may face pressure, Leopold remains upbeat, expecting Dell to grow faster than usual as AI adoption expands across businesses.

Leopold believes that as AI shifts from training to real-world use, more businesses will adopt it, benefiting Dell in the long run. His updated price target shows continued confidence in Dell’s ability to grow beyond 2025 despite current market challenges.

Dell Ramps Up on AI Momentum

Over the last few quarters, Dell has been capitalizing on the surging demand for AI by expanding its Infrastructure Solutions Group (ISG). This division provides essential IT offerings, including servers, data storage systems, and cloud infrastructure services.

Main Street Data shows Dell generated $11.4 billion in revenue from its Infrastructure Solutions Group (ISG) in the fiscal fourth quarter ending January 31, 2025. This marked a 22% jump from the previous year, making up over 45% of the company’s total revenue.

Meanwhile, ISG EBIT has steadily increased over the past few quarters, reaching $2.05 billion in Q4 FY25. Below is the screenshot for reference.

This impressive growth underscores Dell’s successful pivot toward infrastructure services.  While this could mean greater stability, it might also imply slower momentum ahead for its consumer hardware business.

Looking ahead, investors are eager to see if Dell can maintain its momentum in the upcoming quarterly earnings report, scheduled for May 29.

Is DELL Stock a Good Buy Now?

According to TipRanks, DELL stock has received a Strong Buy consensus rating, with 11 Buys and three Holds assigned in the last three months. The average Dell share price target is $128.53, suggesting a potential upside of 25% from the current level.

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