Shares of Dell Technologies (NYSE:DELL) are among the most-discussed stocks on the social media platform Reddit. While this trending Reddit stock has outperformed the broader markets so far this year and gained significantly in value, analysts’ average price target implies limited upside potential in DELL stock over the next 12 months.
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With this backdrop, let’s understand what’s in store for Dell shareholders in the future.
What is the Prediction for DELL Stock?
Dell stock has risen significantly in value despite declining sales. The rally in its shares is backed by investors’ optimism regarding the strong demand for its AI (Artificial Intelligence) servers. Additionally, the company’s focus on enhancing efficiency amid a challenging sales landscape and its focus on returning cash to its shareholders acted as catalysts.
Dell recently delivered Q3 earnings and noted that the AI-optimized server backlog nearly doubled sequentially, with a multibillion-dollar sales pipeline. While AI-led demand remains strong, weakness in the PC market and enterprise and large corporate customers taking a cautious stance in the challenging macro environment limits the upside potential in its share price.
Overall, Wall Street analysts are bullish about DELL stock. Of the 12 analysts covering the stock, 11 recommend a Buy, and one has a Sell, translating into a Strong Buy consensus rating. Further, analysts’ average price target of $79.80 implies a limited upside potential of 5.18% from current levels.
Bottom Line
Dell stock has delivered stellar returns so far this year. Meanwhile, the momentum in AI servers and a solid pipeline augur well for growth. However, the weakness in the PC market restricts the upside potential of this trending Reddit stock, reflected in analysts’ average price target.
