Dell Technologies (DELL) likely will be a major beneficiary of troubles at rival Super Micro Computer (SMCI), analysts say. Dell stock jumped Wednesday after Super Micro’s accounting firm quit.
Super Micro stock crashed Wednesday after the data center specialist revealed that Ernst & Young had resigned as the company’s registered public accounting firm. EY had raised concerns about the company’s financial reporting.
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Meanwhile, Dell stock jumped more than 8% to 132.37 in afternoon trades on the stock market today. Super Micro stock tanked more 32% to 33.06.
Mizuho Securities analyst Vijay Rakesh predicted that Dell will gain market share in artificial intelligence servers as Super Micro deals with a potential delisting from the Nasdaq stock exchange.
“We see continued share gain and upside for Dell as it optimizes its portfolio with Apex and PowerEdge AI servers for CSP (cloud service providers) and enterprise AI,” Rakesh said in a client note. He rates Dell stock as outperform with a price target of 135.
Evercore ISI analyst Amit Daryanani reiterated his outperform rating on Dell stock with a price target of 140.
Dell Stock: Upside From Super Micro’s Woes
“Dell is poised to gain share and remains a logical partner for customers who look for better/different supply chain diversity, and crucially, a strong services offering through the deployment lifecycle,” Daryanani said in a client note.
He added, “Longer term, we think Dell is well-positioned as the enterprise vendor of choice once enterprise/commercial customers deploy their own AI infrastructure given Dell’s customer reach within standard x86 servers, superior services, and comprehensive portfolio.”
Dell’s current AI server customers include CoreWeave and Elon Musk companies Tesla (TSLA), X and xAI, Daryanani said.
Dell stock ranks fifth out of 15 stocks in IBD’s computer hardware industry group, according to IBD Stock Checkup. But it has a subpar IBD Composite Rating of 43 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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