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Morgan Stanley said Dell is Wistron’s major GB200 partner and therefore, the increased Wistron rack shipment forecast bodes well for the company.
Dell Technologies, Inc. (DELL) could see strong artificial intelligence (AI) server demand in fiscal year 2026, according to a Wall Street analyst.
Morgan Stanley's positive expectation was based on an upwardly revised forecast for Wistron’s GB200 Rack shipments due to major U.S. enterprise customers placing more orders, The Fly reported.
Wistron is an electronics manufacturer based in Taiwan that was spun off from Acer in 2000.
Analyst Erik Woodring said Dell is Wistron’s major GB200 partner and therefore, the increased Wistron rack shipment forecast for the calendar year 2025 has a “direct positive read-through” for Dell’s AI server orders, backlog and revenue for the fiscal year 2026.
Morgan Stanley has an ‘Overweight’ rating and $128 price target for Dell shares.
Dell’s fourth-quarter results, released in late February, showed a mixed performance, but the company issued an upbeat outlook for its fiscal year 2026.
The company’s Servers and Networking revenue climbed 37% year over year (YoY) in the fourth quarter due to demand for AI and traditional servers. As of the earnings release date, the AI server backlog stood at roughly $9 billion, thanks to the deals it booked with Elon Musk-owned AI startup xAI and others.
On Stocktwits, sentiment toward Dell stock remained ‘bullish’ (62/100) but the message volume stayed ‘normal.’
A bullish watcher said if smaller rival Super Micro Computer, Inc. (SMCI) shares remain at the current levels, it could be a potential acquisition target for Dell.
Another user attributed their bullish opinion on the stock’s attractive valuation. The shares traded at 10.3 times estimated earnings for the next 12 months.
Dell ended Thursday’s session up 0.87% at $97.10, although it has lost over 15% year-to-date. The Koyfin-compiled analysts' average price target for the stock is $136.28.
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