The Potential for Dell Technologies Stock to Outperform in 2024
Key Takeaways
- Dell Technologies stock may see significant outperformance next year due to “multiple catalysts,” according to a Bank of America (BofA) analyst.
- The BofA analyst said in a report that artificial intelligence (AI) hardware demand will send Dell’s earnings higher.
- BofA maintained a “buy” rating on Dell’s stock, as well as the firm’s $180-per-share price target.
Dell Technologies (DELL) stock has the potential to significantly outperform next year because of “multiple catalysts,” including artificial intelligence (AI) demand, according Bank of America analyst Wamsi Mohan. The tech giant’s AI hardware revenue and margins on deferred revenue suggest “there will be material earnings per share (EPS) upside over time,” Mohan wrote in a note Thursday. He added that PC shipment cycle and storage margins improvement at Dell “should drive incremental upside as well.”
BofA Maintains ‘Buy’ on Dell Stock
Mohan maintained a “buy” rating on the stock, “on AI upside in servers, PC refresh, and strong capital return.” He also kept BofA’s $180 price target. Shares of Dell Technologies hit an all-time high last month after Morgan Stanley also praised the company’s AI momentum. The stock price has lost ground since then after earnings failed to impress investors, but it’s still up roughly 79% so far this year. Dell shares were about 2.5% higher at $135.20 on Thursday at 3:45 p.m. ET.
Read the original article on [Investopedia](https://www.investopedia.com/dell-stock-rises-amid-ai-optimism-from-bank-of-america-analyst-8662993).
In conclusion, Dell Technologies is poised for potential growth in 2024, driven by various factors such as AI demand, PC refresh cycles, and improvements in storage margins. With analysts maintaining a positive outlook and a strong buy rating, investors may find Dell’s stock to be an attractive opportunity for the upcoming year. As the tech industry continues to evolve and innovate, Dell Technologies appears to be well-positioned to capitalize on emerging trends and drive value for its shareholders.
