With big gains today, Dell stock is now up roughly 95.5% across 2024.
The stock of Dell (DELL 5.45%) is posting big gains in Tuesday’s trading. The technology company’s share price was up 7.8% as of 3:30 p.m. ET today, according to data from S&P Global Market Intelligence.
Dell’s share price is surging following favorable coverage from an analyst at Morgan Stanley. On the heels of a bullish write-up from the high-profile firm’s lead analyst on the stock, other investors have been buying up shares.
A high-profile analyst thinks Dell’s bullish run will continue
After the market closed yesterday, Morgan Stanley analyst Erik Woodring published a research note indicating that he expects Dell stock to continue posting strong performance this year thanks to demand stemming from the rise of artificial intelligence (AI). Woodring reiterated his overweight rating on the stock, indicating that he believes shares are still a smart buy for investors.
The Morgan Stanley analyst also raised his one-year price target to $155 per share. With the stock currently trading at roughly $149.50, Woodring’s price target implies potential upside of roughly 4% even after today’s big gains.
What comes next for Dell?
Dell stock has posted very strong performance this year thanks to surging demand for servers capable of running AI applications. The company’s share price is up roughly 95.5% year to date. Even on the heels of such explosive gains, Woodring still thinks the stock has room for additional upside and named the company as a top investment candidate.
The AI revolution is still just beginning to unfold, and Dell’s strong position in the high-performance server space could set the stage for the company to see strong sales and earnings growth for years to come. While other legacy products from the company look poised to continue declining, increased demand for advanced server technologies could spur a sustained return to much healthier sales growth and improved margins.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.