Bernstein: Dell's current growth has expanded from a single AI server to traditional servers and storage. Demand for AI infrastructure is driving the entire data center hardware portfolio, while increased scale and improved product mix are significantly boosting profit margins.
Therefore, we are raising our target price for Dell to $650, up from $500, with an "Outperform" rating. We project a valuation of 22x EPS for fiscal year 2028 and 19x EPS for fiscal year 2029.
