Analysts Boost Ratings and Targets as Dell's (DELL) AI Server Momentum Surges

Dell Technologies Inc. (NYSE:DELL) is one of the best affordable AI stocks to buy now. On December 4, Dell Technologies Inc. (NYSE:DELL) announced a $0.525 quarterly cash dividend payable on January 30, 2026, to shareholders of record as of January 20, 2026.

The company has increased its annual cash dividend by 18% in 2025 to $2.10, affirming its commitment to shareholder value. The dividend increase comes on the heels of the company’s AI-optimized server revenue, which beat expectations, topping $5.6 billion. Analysts at Piper Sandler have already reiterated their Overweight rating amid stronger-than-expected momentum in AI servers. AI server orders have already totaled $12.3 billion, exceeding market expectations.

Meanwhile, Mizuho raised its Dell price target to $175 from $170 on November 26, impressed by the company’s increase in its fiscal 2026 AI server revenue forecast to $25 billion from $20 billion. Server revenue in January is expected to top $9.4 billion, above consensus estimates of between $5.3 billion and $6 billion.

Dell’s AI server pipeline is experiencing robust growth, with the backlog increasing by 57% quarter over quarter in the third quarter to $18.4 billion. The research firm believes the AI pipeline has risen to $60 billion from a previous estimate of $38 billion.

Dell Technologies Inc. (NYSE:DELL) provides comprehensive Artificial Intelligence (AI) solutions through its Dell AI Factory initiative, which involves producing specialized hardware, software, and services to help customers manage the entire AI lifecycle. Their primary focus is on building the infrastructure (the “engines of intelligence”) that powers AI applications for other businesses.

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Disclosure: None. This article is originally published at Insider Monkey.