Dell Technologies (DELL) Stock Forecast & Price Target

Dell Technologies has demonstrated a significant uptick in its stock price, increasing approximately 3.5 times since November 2022, buoyed by its reputation as a beneficiary of AI-driven hardware demand. With annual sales exceeding $100 billion and a leading position in servers, storage, and personal computers, the company is well-positioned to capitalize on emerging growth trends, particularly from AI infrastructure developments. The projected growth scenarios suggest a robust future, with potential for a 12% compound annual growth rate in total revenue, driven by increased demand for its products and ongoing refresh cycles.

Dell Technologies faces significant challenges within its core hardware markets, highlighted by a nearly 10% market share decline in all-flash systems since 2018, coupled with ongoing struggles in hyper-converged infrastructure (HCI) attributed to VMware issues. The company's positions in the consumer segment are also deteriorating, raising concerns that it may continue to lose market share, which poses a long-term secular headwind for Dell's server and storage offerings. Furthermore, the increasing migration of workloads to the public cloud presents an additional sustained threat, further undermining Dell's traditional business model centered around on-premises solutions.