Dell Technologies Upgraded by Barclays on AI Strategy Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy DELL?
Source: Benzinga
Dell Technologies' stock rose by 5.05% as it crossed above the 5-day SMA, reflecting positive investor sentiment. The upgrade by Barclays to Overweight, with a target price of $148, was driven by Dell's strategic initiatives, including the 'One Dell Way' program aimed at consolidating applications and enhancing AI capabilities through the acquisition of Dataloop AI for $120 million. This upgrade signals strong confidence in Dell's potential for improved earnings and reduced execution risks, despite the stock trading below its 20-day and 100-day simple moving averages.
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Analyst Views on DELL
Wall Street analysts forecast DELL stock price to fall
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 260.460
Low
113.00
Averages
164.85
High
180.00
Current: 260.460
Low
113.00
Averages
164.85
High
180.00
About DELL
Dell Technologies Inc. is engaged in designing, developing, manufacturing, marketing, selling, and supporting a wide range of comprehensive and integrated solutions, products, and services. The Company operates through two segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). Its ISG segment enables the Company’s customer’s digital transformation with solutions that address artificial intelligence (AI), machine learning, data analytics, and multi cloud environments. Its comprehensive storage portfolio includes modern and traditional storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage. Its CSG segment offers branded personal computers (PCs) including notebooks, desktops, and workstations and branded peripherals that include displays, docking stations, keyboards, mice, and webcam and audio devices, as well as third-party software and peripherals.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Micron Buy Rating: D.A. Davidson reiterates its buy rating on Micron with a target price of $1,000, expressing strong confidence in the company's future amidst a recovering memory industry, which could significantly boost its stock performance.
- Starz Entertainment Upgrade: Baird upgrades Starz Entertainment from neutral to outperform, citing its favorable market position following its separation from the studio, which is expected to drive future growth and enhance investor confidence.
- Dell Downgrade to Neutral: UBS downgrades Dell from buy to neutral primarily on valuation grounds, noting that the stock's 170% rise over the past year has balanced the risk/reward profile, potentially affecting future investment decisions.
- Tesla Overweight Reiteration: Piper Sandler reiterates its overweight rating on Tesla, highlighting a range of positive tailwinds expected to drive valuation in the coming years, urging investors to focus on long-term delivery and earnings growth potential.
See More
UBS Downgrades Dell to Neutral Amid AI Demand Concerns
- Demand Expectation Adjustment: UBS downgraded Dell's rating from Buy to Neutral, indicating that the demand for AI-related servers is fully priced in, suggesting a potential downside of approximately 7% for the stock moving forward.
- Price Target Increase: Despite the downgrade, UBS raised Dell's price target from $167 to $243, reflecting a cautious optimism about the company's future performance, while also noting limited near-term upside in earnings per share.
- Market Performance Comparison: Over the past 12 months, Dell's stock surged 172%, compared to a 31% increase in the S&P 500, highlighting Dell's strong performance in the AI server market, although analysts warn of potential growth slowdown ahead.
- Changing Competitive Landscape: With legal issues facing AI competitors, future orders may shift towards Dell; however, analysts caution that Dell's customer capital expenditure growth may lag behind that of major cloud providers due to their stronger financial positions and cash flows.
See More
Dell's Emergence in the Artificial Intelligence Sector
- Significant Revenue Growth: Dell's revenue grew by 19% last fiscal year to a record $113.5 billion, with a 40% increase in its infrastructure solutions group, indicating strong demand in the AI-optimized server market.
- AI Platform Innovation: The launch of Dell AI Factory allows organizations to easily implement AI applications, attracting notable companies like McLaren and Lowe's, highlighting its potential and market acceptance in the AI sector.
- Market Positioning of ON Semiconductor: ON Semiconductor focuses on industrial sensors and high-capacity semiconductors; although growth is currently slow, partnerships with EV makers like Geely and Nio suggest future growth potential.
- Technological Breakthrough by Astera Labs: Astera Labs reported a 93% year-over-year revenue increase to $308.4 million last quarter, with its systems effectively integrating processors in AI data centers, underscoring its significance in the rapidly evolving AI market.
See More
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- Dell's AI Solutions: Dell's AI Factory platform enables organizations to easily implement AI applications, with last year's revenue growing 19% to $113.5 billion and a 40% increase in its infrastructure solutions group, highlighting its potential and competitiveness in the AI market.
- ON Semiconductor's Automation Capabilities: ON Semiconductor provides industrial sensors and microcontrollers across various sectors, including EVs and medical devices; while growth is currently slow, its comprehensive product offerings are expected to drive future revenue and earnings growth.
- Astera Labs' Hardware Innovation: Astera Labs designs systems that interconnect processors in AI data centers, achieving a 93% year-over-year revenue increase last year, with strong growth expected in the coming years, showcasing its significant potential in the data center infrastructure market.
- Optimistic Market Outlook: With the global data center infrastructure market projected to grow at an average annual rate of 13.4%, investments and innovations from companies like Dell, ON Semiconductor, and Astera Labs in the AI sector will provide long-term growth opportunities.
See More
Jim Cramer Discusses Dell Technologies' AI Investment Potential
- AI Investment Focus: Jim Cramer highlighted Dell Technologies during his show, emphasizing its crucial role in AI infrastructure as a provider of servers and storage systems, showcasing its strategic position in the rapidly evolving AI market.
- Market Opportunities: Cramer noted that while Dell has potential in the AI sector, he believes other AI stocks may offer greater upside potential and lower downside risk, reflecting a diversified view on investment opportunities in the market.
- Industry Competition: Dell competes with companies like Vertiv, Corning, and Arista in the AI infrastructure space, indicating its collaborative relationships in networking equipment and cooling solutions, which enhance its market competitiveness.
- Investment Advice: Cramer expressed regret over missing out on Dell stock, hinting at its potential for future growth and encouraging investors to monitor the company's performance in the AI sector, despite the presence of other more attractive investment options.
See More
Dell Technologies Surges 24% Following Trump's Endorsement
- Trump's Endorsement: Dell Technologies (DELL) saw its stock price close approximately 24% higher this week, marking its best weekly rally since February 2024, primarily driven by President Trump's public support during a Mother's Day event, highlighting the positive impact of political backing on tech stocks.
- Invest America Initiative: Founder Michael Dell and his wife Susan received praise from Trump for their $6.25 billion contribution to the Invest America initiative, which aims to provide $1,000 to children born between 2025 and 2028, further enhancing Dell's public image and corporate responsibility narrative.
- Stock Volatility: Following Trump's endorsement, Dell's shares surged over 13% on Friday, recovering from a ~5% drop the previous day, illustrating the market's sensitivity to political factors and their direct influence on stock performance.
- Market Outlook: Dell's cloud business is gaining traction due to AI and conventional server tailwinds, with Mizuho analysts raising their price targets, indicating potential for continued growth, especially with upcoming Q1 earnings that are expected to highlight AI-related business momentum.
See More
