Investment research firm Evercore ISI has increased its price target for Dell stock from $140 per share to $165 per share. The analysts at Evercore highlighted that a potential deal with Tesla could contribute to Dell’s AI backlog, which is currently estimated at around $2.9 billion.
According to Evercore ISI, Tesla has signaled its intention to grow its compute capacity and Evercore anticipates Dell to receive more orders from the electric vehicle manufacturer. They also noted that Dell has secured a significant amount of storage attach in addition to AI servers, which could be shipped together.
This is expected to have a positive impact on Dell’s top-line growth rate in the coming years. Dell has not commented on its potential business with Tesla.
A spokesperson for Dell mentioned that they are in a quiet period and will provide the latest financial updates, including on the server business, during the Q1 earnings call on May 30. The source of the information is from Investing.com and The Street.
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