Dell, Sandisk price targets lifted at BofA on 'very robust' AI servers demand

Investing.com -- Bank of America has raised price targets for Dell and Sandisk after what it described as “very robust” demand for AI servers during an Asia supply-chain review.

Analyst Wamsi Mohan writes that checks indicate “demand for AI servers remains strong,” with most near-term revenue coming from GB300-based systems and further VR-rack shipments expected in the second half of the year.

The firm came away “favorably on Dell Technologies,” saying its $50 billion fiscal 2027 AI-server revenue guide “could end up conservative.”

BofA now forecasts $15 billion of AI-server revenue for Dell in the first quarter, up from prior guidance of $13 billion, and has lifted its full-year AI-server estimate to $60 billion from $50 billion. The price target for Dell was raised to $172 from $155.

Sandisk also saw its valuation target lifted, with BofA citing a “strong NAND outlook” and tightening supply.

The firm notes that NAND pricing “continues to be strong” and that customers increasingly want long-term agreements.

It now models a 63% quarter-over-quarter ASP increase for the March quarter and raises its June-quarter forecast to 20% growth. The price target for Sandisk was increased to $900 from $850.

The note also highlights persistent global tightness in optical fiber supply, though PC demand remains mixed. BofA warns that pull-forward buying linked to rising memory prices could leave the second half “weaker,” with potential “incremental downside” to industry PC demand.

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