Dell Technologies (DELL, Financials), the computer hardware and IT infrastructure company known for PCs, servers, storage and enterprise technology, drew a higher price target from Evercore ISI as confidence grows around its AI infrastructure business.
Evercore raised its target on Dell to $500 from $450 and kept an Outperform rating on the stock.
The firm said demand for Dell's AI infrastructure remains stronger than supply. That means Dell could grow faster if more components were available.
Evercore also expects supply limits to become more noticeable in 2027, with constraints in DRAM, NAND, CPUs, hard drives and optics.
For Dell, the opportunity is broader than just AI servers. The company is also seeing demand tied to storage, edge computing and enterprise AI projects as businesses move past early testing.
The main point for investors is simple: Dell appears well placed in the AI buildout, but supply shortages could decide how much of that demand turns into revenue.