DELL’s AI Server Strategy Could Boost EPS, Says Analyst

June 29, 2025 08:21 AM PDT | By EODHD

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DELL’s AI Server Strategy Could Boost EPS, Says Analyst — Image source: Kalkine Media

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Dell Technologies Inc. (NYSE:DELL) is one of the 10 AI Stocks Investors are Watching. On June 26, Morgan Stanley analyst Erik Woodring reiterated the stock as “Overweight” and kept the price target at $135.00. The firm said it is sticking with shares of Dell. Woodring believes that Dell is well-positioned to perform strongly in the AI server market, with significant growth anticipated in its AI server sales.

Firm projections suggest a major increase beyond current estimates, which is likely to contribute positively to Dell’s earnings per share. This is despite potential pressures on operating margins. A close up of a computer server rack powering the backbone of a wireless infrastructure. Dell has effective strategies in place for cost efficiency and storage outperformance, which is why Woodring is confident that Dell can handle margin pressures well. These strategies will help the company maintain operating margin expansion and also capitalize on the AI server market’s growth.

“With conviction in DELL’ s ability to offset gross margin pressure with cost efficiency in an AI server bull case, we remain OW-rated.” Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide. While we acknowledge the potential of DELL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and 10 Trending AI Stocks on Wall Street Right Now.

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