Dell Technologies' (DELL) near-term results are likely to be "very strong", driven by strength in AI servers and a pull-forward in large enterprise spending, Morgan Stanley analysts said in a Thursday note.
Dell is expected to report its fiscal Q1 financial results on May 28.
Analysts said they expect a much stronger-than-anticipated first half of the year for Dell, but note that the beat is already priced into the stock.
Morgan Stanley said it is more cautious about Dell going into the second half of the year.
Analysts said that Dell could see AI server demand of $65 billion in fiscal 2027, well above the company's target of $50 billion.
Analysts retained an underweight rating on the stock, but raised its price target to $170 from $110.
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