Dell Technologies Inc. (NYSE:DELL) is one of the AI Stocks Making Moves on Wall Street. On November 17, Morgan Stanley cut ratings on major technology hardware makers, including Dell. The firm double-downgraded Dell to “underweight” from “overweight,” and cut its price target to $110 from $144. “Dell Technologies (UW): AI server mix + component cost inflation to pressure margins and valuation, double downgrading to Underweight (from OW) with a new $110 PT. In May 2023 we upgraded DELL to OW (from EW) and ...

Core Viewpoint - Dell Technologies Inc. is experiencing significant growth in its AI activities, leading to an upward revision of its sales and earnings growth targets, despite modest margins potentially limiting valuation compared to peers [2][3]. Group 1: Analyst Ratings and Price Targets - Raymond James analyst Simon Leopold reiterated an Outperform rating on Dell's stock with a price target of $152.00 following the company's securities analyst meeting in New York [1]. - The stock initially saw a ~3% increase in intraday trading, although it later settled at a 1% gain [3]. Group 2: Financial Outlook and Growth Projections - Dell's management has increased its long-term EPS growth outlook to over 15%, nearly double the sales growth rate, driven by strong AI activity that exceeded previous forecasts [2][3]. - The long-term revenue growth outlook has improved from 3-4% to 7-9%, with an increased growth target for the Infrastructure Solutions Group (ISG) while the Client Solutions Group (CSG) outlook remains unchanged [3]. Group 3: Market Position and Competitive Landscape - Despite the positive outlook, investors are cautious due to Dell's modest gross and operating margins, which may lead to a lower stock multiple compared to IT/networking peers [2][3].