On Wednesday, TD (TSX:TD) Cowen sustained its Hold rating on Dell Technologies Inc. (NYSE:DELL) while keeping the price target unchanged at $128.00. The firm's assessment followed Dell's recent earnings report, which met expectations despite high market anticipation. The report highlighted delayed revenue from Blackwell project's AI initiatives and continued underperformance in the PC segment.
TD Cowen pointed out that the end-of-life phase for Windows 10 is not anticipated to drive significant demand, contrary to what might be expected from AI PCs and the upcoming five-year refresh cycle in the next year. Additionally, Dell's storage offerings have not met the analyst's forecasts, though the qualification of a new 60TB solid-state drive (SSD) could present an opportunity worth monitoring.
The analyst's commentary emphasized that while the results were acceptable, certain areas such as artificial intelligence revenue and PC sales did not live up to expectations. The delay in the Blackwell project has been a factor in postponing some of the anticipated AI revenue.
Dell's storage performance also fell short of TD Cowen's projections. However, there could be a potential upside with the qualification of the 60TB SSD, which may serve as a notable point of interest for investors and the company alike.
The price target for Dell remains set at $128, as the analyst sees no immediate catalysts that would justify a change. The Hold rating indicates a neutral stance, suggesting that the firm advises investors to maintain their positions without making additional investments in the stock at this time.
In other recent news, Dell Technologies has reported a 10% increase in total revenue, reaching $24.4 billion, primarily driven by the Infrastructure Solutions Group (ISG) that focuses on AI infrastructure and server solutions. The company's earnings per share also rose to $2.15, marking a 14% year-over-year increase. Dell's AI server orders reached a record $3.6 billion, indicating a robust demand in the AI server market.
Despite a slight decrease in the Client Solutions Group (CSG) revenue, Dell remains optimistic about fiscal year 2026, expecting growth in PC and server refresh cycles and a continued rise in demand for AI servers. In recent analyst assessments, Mizuho (NYSE:MFG) Securities, Citi, Goldman Sachs (NYSE:GS), and Bernstein SocGen Group maintained positive ratings on Dell but adjusted their price targets. These recent developments reflect Dell's strategic focus on AI infrastructure and server solutions, which has resulted in substantial growth in its ISG.
InvestingPro Insights
Recent data from InvestingPro offers additional context to TD Cowen's analysis of Dell Technologies Inc. Despite the Hold rating and unchanged price target, Dell's financial metrics reveal some positive trends. The company's P/E ratio stands at 22.23, which, when considered alongside its PEG ratio of 0.23 for the last twelve months as of Q3 2025, suggests the stock may be undervalued relative to its growth potential.
InvestingPro Tips highlight that Dell has been aggressively buying back shares and offers a high shareholder yield, which could be seen as a positive signal for investor confidence. Additionally, the company has raised its dividend for three consecutive years, demonstrating a commitment to returning value to shareholders.
These insights align with the article's discussion on Dell's performance and future prospects. While TD Cowen notes challenges in AI revenue and PC sales, the InvestingPro data shows a strong revenue growth of 9.51% in Q3 2025, indicating resilience in Dell's overall business model.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Dell Technologies Inc., providing a deeper understanding of the company's financial health and market position.
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