Why Dell Technologies Shares Are Climbing Today

Dell Shares Surge as BofA Predicts EPS Could Double by 2030 on AI Boom

16 hours ago

Summary

Rising AI investment may fuel a major turnaround in Dell’s profitability, says Bank of America

July 18 - Shares of Dell Technologies (DELL, Financial) surged about 3% Friday after Bank of America projected the company's earnings per share could nearly double by 2030, driven by rising demand for enterprise and sovereign AI infrastructure.

BofA analysts said Dell's EPS may climb to $19.01 by the end of the decade, fueled by expanding AI server deployments and a rebound in cloud-related capital expenditures. Revenue growth is expected to accelerate to 12% annually over the next five years, up from 2% in the previous five.

The firm added that AI-related investments could prompt a shift from elevated operating costs to increased capital spending across the enterprise segment. That trend, it noted, may drive stronger operating profit and cash flow through the end of the decade.

While margins could be pressured by the mix of AI hardware, Bank of America expects overall profitability to rise as adoption widens. It reiterated a “Buy” rating on Dell and raised its price target to $165 from $155.

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