Dell Technologies (DELL) Could Benefit From 2026 Data Center Refresh, Says Piper Sandler

Core Viewpoint - Dell Technologies Inc. is recognized as a trending AI stock with strong opportunities, particularly benefiting from enterprise data center refreshes and AI infrastructure buildouts [1][2] Group 1: Investment Potential - Piper Sandler initiated coverage on Dell with an "Overweight" rating and a price target of $172, indicating strong growth potential [1] - Analysts believe Dell will be a primary beneficiary of a robust enterprise data center refresh expected to be particularly strong in 2026 [1][2] - Approximately 50% of units are still in need of refresh, which presents a significant opportunity for Dell [1][2] Group 2: Market Position and Challenges - Dell faces secular headwinds due to the shift towards cloud solutions by enterprises and potential market share losses in the PC segment [2] - Despite these challenges, Dell's server business is significantly tied to AI, with 45% of its server business being AI-related [1]