Dell Technologies Sees Price Target Increase Following Surge in AI Server Sales to Tesla

Friday, 17 May 2024, 12:36

Investment bank Evercore ISI raises Dell Technologies' price target to $165 due to increased AI server sales to Tesla. The partnership is expected to drive significant revenue growth for Dell, but questions remain about the stock valuation and growth potential. Despite Tesla's presence, Dell's current growth rate may not justify its high valuation.
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Dell Technologies Sees Price Target Increase Following Surge in AI Server Sales to Tesla

Analysis:

Investment bank Evercore ISI raises Dell Technologies' price target to $165 due to strong AI server sales to Tesla, indicating potential for revenue growth.

In-depth Evaluation:

  • Partnership with Tesla: Dell Technologies benefits from supplying servers equipped with Nvidia H100 AI computer chips to Tesla.
  • Future Revenue Potential: Analysts project a significant revenue increase for Dell due to its AI server and storage computing sales to Tesla.
  • Stock Valuation Concerns: Dell's current growth rate may not align with its high stock valuation, requiring substantial growth to justify the price.

Conclusion: Despite the positive outlook from Evercore, concerns about Dell's growth rate and stock price persist, raising questions about investment decisions.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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