Citigroup Raises Price Targets for Dell and Hewlett Packard Enterprise, Citing Surging Artificial Intelligence Demand

Deep News07-24 23:51

Citi analysts see significant upside for these AI hardware suppliers as infrastructure demand remains robust.

Analyst Asiya Merchant reiterated a "Buy" rating on both Dell Technologies Inc. (DELL) and Hewlett Packard Enterprise (HPE) in a Friday report, while also raising their price targets.

Dell Technologies Inc. (DELL): Target raised from $475 to $515, implying a 17% upside from Thursday's closing price.

Hewlett Packard Enterprise (HPE): Target raised from $70 to $74, implying a 55% upside from Thursday's closing price.

This bullish outlook follows Super Micro Computer's analyst day and Intel's earnings report, both of which exceeded expectations. This indicates that companies are increasing their technology infrastructure spending, driven by AI, new servers, and data centers.

Merchant wrote, "For Dell Technologies Inc. (DELL), we see upside from a larger CPU total addressable market, strong server demand, and continued strength in AI infrastructure deployment. For Hewlett Packard Enterprise (HPE), our higher expectations reflect a larger CPU-driven server opportunity and robust networking momentum."

Both stocks have rallied significantly this year, with Hewlett Packard Enterprise (HPE) shares rising 98% and Dell Technologies Inc. (DELL) shares up 245%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment