Evercore ISI Maintains an Outperform rating on Dell Technologies Inc. (DELL)

Core Insights - Dell Technologies Inc. is identified as one of the 7 cheapest AI data center stocks to buy now, with an increased price target set by Evercore ISI analyst Amit Daryanani from $160 to $205 while maintaining an Outperform rating [1] Group 1: Financial Performance and Strategic Moves - Dell reduced its workforce by approximately 10% in fiscal 2026, laying off around 11,000 employees, which decreased its headcount from 108,000 to about 97,000 [2] - Severance payments for the layoffs amounted to $569 million, a decrease from $693 million the previous year, as the company limited external hiring to save costs [2] - The company anticipates that its AI-optimized server business will double sales in fiscal 2027 and announced a 20% increase in cash dividends along with a $10 billion share repurchase program [2] Group 2: Market Drivers and Future Outlook - Key market drivers include expectations of increased CPU-driven server demand and investor positioning around Nvidia supply reallocation following DOJ-related reports on Super Micro [1] - The divergence between OEM and memory stocks is noted, particularly as DRAM and NAND prices have fallen [1] - Google's TurboQuant announcement is seen as a potential catalyst for future efficiency advancements that could lower memory intensity in AI workloads, improving cost dynamics for manufacturers [1]