Dell Technologies’ (DELL) remarks around artificial intelligence servers were encouraging and showed the company’s AI story is in early days and “gaining momentum,” Morgan Stanley said Friday.
The computer maker late Thursday delivered better-than-expected fiscal Q4 results.
The management’s AI server commentary “stole the show,” with backlog almost doubling and orders increasing about 40% sequentially, Morgan Stanley said in a note.
The brokerage raised its price target on the Dell stock to $128 from $100. “While Dell has had a phenomenal run over the last 12 months, we believe there is still further outperformance to capture, and a hard catalyst to drive this re-rating, allowing us to reinstate Dell as our top pick,” Morgan Stanley said.
The company’s shares were up nearly 26% in recent trading.