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Key Takeaways
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Dell Technologies is slated to report fiscal 2025 fourth-quarter results after the closing bell Thursday.
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Analysts expect year-over-year revenue growth, driven by the company's servers and networking solutions.
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Looking ahead, analysts say Dell's revenue from artificial intelligence servers could struggle in the near term.
Dell Technologies (DELL) is expected to report fiscal 2025 fourth-quarter results after markets close Thursday, with analysts calling for revenue growth driven by servers and networking solutions.
Of the seven analysts covering the stock tracked by Visible Alpha, six have "buy" or equivalent ratings on the shares, with just one giving the stock a "hold" rating. Their consensus price target of almost $148 would suggest about 30% upside from Monday's close.
The PC maker is expected to report adjusted earnings per share (EPS) of $2.51 on net sales of $24.56 billion, up from $2.20 and $22.32 billion, respectively, a year ago. Its Infrastructure Solutions Group, which includes servers and networking solutions, is expected to deliver record revenue of $11.74 billion, up more than 25% year-over-year.
Analysts Say AI Server Revenue May Struggle in Near Term
Bank of America lowered its price target to $150 from $155 last week while maintaining a "buy" rating, arguing that artificial intelligence server revenue could be hindered in the near term by ongoing supply-chain issues with Nvidia's (NVDA) Blackwell chips. The bank expects AI server revenue to fall quarter-over-quarter but for Dell to show "healthy AI order growth."
Morgan Stanley dropped its price target to $128 from $154 earlier this month, calling the company's short-term outlook "choppy" even as demand for AI servers "remains robust."
The results come after Dell reportedly was nearing a deal to sell more than $5 billion of servers powered by Nvidia GB200 chips to Elon Musk's xAI.
Shares of Dell slipped about 3% Monday but are up more than 23% over the past 12 months.
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