Dell Technologies wins Barclays upgrade as AI server orders surge and enterprise markets recover

Dell Stock Climbs After Barclays Upgrade - Dell Technologies (NYSE:DELL)

Dell Technologies Inc (NYSE:DELL) shares were trading higher on Thursday afternoon after Barclays upgraded the stock to Overweight from Equal-Weight, pointing to rising momentum in the company's AI strategy. Here's what investors need to know. Dell Technologies stock is moving in positive territory. Why is DELL stock trading higher? Dell Stock Rises On Operational Revamp, Analyst Upgrade An internal memo, reported by Business Insider, says Dell COO Jeff Clarke outlined "One Dell Way," a major operational transformation. The initiative will replace multiple applications and databases with a single enterprise platform launching May 3, standardizing processes, unifying data and reducing complexity across the business. Clarke said simplifying Dell's infrastructure is critical to unlocking AI's potential. A streamlined, automated system is expected to make it easier for customers to deploy AI workloads and for Dell to operate as a single, integrated organization. The revamp follows Dell's $120 million acquisition of Israeli AI startup Dataloop AI, bolstering its end-to-end AI infrastructure offerings. Despite mixed third-quarter results, Dell reported strong AI-driven revenue, including record AI server demand of $12.3 billion and $30 billion in total orders. Why The News Is Lifting Dell Stock Investors often reward companies that combine cost-saving changes with clear growth drivers. Dell's plan to modernize systems, deepen AI capabilities and capitalize on AI server demand, reinforced by Barclays' upgrade, signals stronger earnings potential and lower execution risk, helping lift Dell shares Thursday afternoon. Short-Term Weakness Signals Caution Ahead Dell Technologies is currently trading 3.7% below its 20-day simple moving average (SMA) and 11.5% below its 100-day SMA, suggesting some short-term weakness. Over the past 12 months, shares have increased by 10.17% and are positioned closer to their 52-week highs than lows. The RSI is at 33.67, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum. Key Resistance: $131.50 Key Support: $116.50 Record Earnings Forecast Investors are looking ahead to the next earnings report on Feb. 26. EPS Estimate: $3.42 (Up from $2.68 year-over-year) Revenue Estimate: $31.60 billion (Up from $23.93 billion YoY) Valuation: P/E of 15.9x (Indicates fair valuation) Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $165.64. Recent analyst moves include: Barclays: Upgraded to Overweight (Target $148 on Jan. 15) Goldman Sachs: Buy (Lowered Target to $165 on Jan. 14) Mizuho: Outperform (Raised Target to $175 on Nov. 26, 2025) Valuation Insight: While the stock trades at a fair P/E multiple, the strong consensus and 28% expected earnings growth suggest analysts view this growth as justification for the 38% upside to analyst targets. Benzinga Edge Rankings Below is the Benzinga Edge scorecard for Dell Technologies, highlighting its strengths and weaknesses compared to the broader market: Momentum: Neutral (Score: 31.69/100) -- The stock is currently underperforming relative to the market. Value: Risk (Score: 39.51/100) -- The stock is trading at a moderate premium relative to peers. The Verdict: Dell Technologies's Benzinga Edge signal reveals a mixed outlook as the stock struggles with momentum but maintains a fair valuation. Investors should monitor upcoming earnings closely, as the company's strategic moves in AI could significantly impact future performance. Top ETF Exposure American Customer Satisfaction ETF (BATS:ACSI): 4.09% Weight Alpha Dog ETF (NYSE:RUFF): 1.61% Weight Tortoise AI Infrastructure ETF (NYSE:TCAI): 4.38% Weight Significance: Because Dell carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock. Dell Shares Gain on Thursday DELL Price Action: Dell Technologies shares were up 0.80% at $119.67 at the time of publication on Thursday, according to Benzinga Pro data. Image: Shutterstock DELLDell Technologies Inc$120.061.15%OverviewACSIAmerican Customer Satisfaction ETFNot Available-%TCAITortoise AI Infrastructure ETF$32.292.48% This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Barclays upgrades Dell on strong AI server orders, enterprise recovery By Investing.com

Investing.com -- Barclays has upgraded Dell Technologies (NYSE:DELL) to Overweight (OW) from Equal Weight amid growing confidence in the company's position across AI servers as well as improving opportunities in enterprise server and storage markets. The bank kept its price target unchanged at $148. "We are encouraged by what we are seeing now and upgrading the name to OW from EW as we see more upside to come," analyst Tim Long said in a Thursday note. The move is driven primarily by stronger-than-expected AI server orders. Barclays said it has become more comfortable with the margin profile of the AI server business, noting that while gross margins remain pressured, operating margins have been resilient. "We are more positive on DELL given the strength in AI server orders, stability of AI op margins, expanding opportunities in enterprise server and storage, and DELL's consistent disciplined opex management," Long wrote. The analyst highlighted Dell's plans to ship around $9.4 billion of AI servers in the fourth quarter, which would lift full-year AI server shipments to about $25 billion. He now models 155% and 60% growth in AI orders in fiscal 2026 (FY26) and FY27. Long said he had previously been concerned about the dilutive gross margin profile of AI servers. But while gross margins are still likely to remain in the high single-digit (HSD) range, this is now largely understood by the market, he added. "[We] are encouraged that the company is managing to mid-singe-digit op margins for the business," Long said. Beyond AI, the analyst points to a recovery in traditional enterprise server and storage markets. He said Dell continues to increase the mix of its intellectual property offerings in storage and sees meaningful upgrade potential, with a large portion of the installed base still running on older-generation servers. "We think DELL's supply chain leadership can help better navigate the current commodity environment," he continued. Long maintained a neutral view on the broader hardware sector, flagging AI servers as the key growth driver but warning that low margins and rising memory costs could limit upside across the industry. He also downgraded Nutanix (NASDAQ:NTNX) to Equal Weight, pointing to longer deal cycles and less visibility on bookings momentum.