Checks suggest Dell quickly ramping AI server builds, says Morgan Stanley

Morgan Stanley said the firm’s supply chain checks suggest Dell is quickly ramping AI Server builds. While GPU supply is a gating factor, at $5B of revenues and about 30c of EPS in FY25, AI servers have the potential to drive 4%-5% upside to the firm’s “above-Street” FY25 estimates, the analyst tells investors. Morgan Stanley keeps an Overweight rating and $56 price target on Dell shares while raising its bull case valuation to $84 from $81 as it embeds this opportunity.