Susquehanna reiterates Positive on Dell, maintains $700 price target on AI inferencing demand
What happened
In a September 29 analyst note, Susquehanna reiterated its Positive rating on Dell Technologies (DELL) and maintained its $700 price target, implying roughly 28% upside from the stock's then-current level around $543. Analyst Mehdi Hosseini pointed to growing demand for AI inferencing as the key catalyst for Dell's server business, expecting traditional server revenue to double in fiscal 2027 and then grow at a double-digit compound annual growth rate through fiscal 2029. Hosseini argued that enterprise customers and neocloud service providers are increasing spending on computing infrastructure for AI inferencing applications, a trend that should drive growth across Dell's server segment and support upside to fiscal 2028 and fiscal 2029 estimates.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Dell (DELL) — target implies ~28% upside from ~$543, ranks near the top of Street estimates (consensus ~$595); supports the AI-server/backlog thesis
- Server/AI-infrastructure supply chain — reinforces demand narrative for memory and component suppliers as inferencing buildouts accelerate
Sources