Citi raises target prices for Dell and HPE, optimistic about growing demand for artificial intelligence
Citi believes there is significant upside potential for these AI hardware vendors as demand for AI infrastructure remains strong. Analyst Asia Merchant reiterated her support for the move in a note on Friday. and HPE have a "buy" rating and raised their price targets: Dell: Upgraded from $475 to $515 - implying a 17% upside from Thursday's closing price HPE: Upgraded to $74 from $70 - implying 55% upside from Thursday's closing price Previously, AMD’s analyst day and The financial reports all exceeded expectations, showing that companies are increasing spending on technology infrastructure, driven by AI, new servers and data centers. "For Dell, we see upside from a larger total CPU addressable market, strong server demand, and continued strength in AI infrastructure deployments," she wrote. "For HPE, our higher outlook reflects a larger CPU-powered server opportunity and strong networking equipment growth momentum." Both stocks have surged this year, with HPE shares up 98% and Dell shares up 245%.