J.P. Morgan raised price targets for Dell Technologies and Hewlett Packard Enterprise on Friday ahead of their upcoming earnings reports.
The move signals growing confidence in the hardware sector's ability to monetize the artificial intelligence boom through server infrastructure.
Analysts at J.P. Morgan increased the price target for Dell Technologies to $280, up from a previous target of $205 [1]. The firm said the ongoing AI server story is a primary driver for the bullish outlook, noting that previous concerns regarding memory have begun to fade [3].
Similarly, the firm raised its price target for Hewlett Packard Enterprise to $37, increasing it from $27 [2]. Analysts said this shift is due to a reversal in memory-related concerns, which has helped power a broader rally in IT hardware [2].
Market reaction was immediate, with Dell shares rising 1.9% in pre-market trading following the updates [4]. Both companies are now positioned as key beneficiaries of the infrastructure build-out required to support large-scale AI deployments.
The updated targets come as investors look for evidence that the surge in AI spending is translating into sustainable revenue growth for legacy hardware providers. By adjusting these targets before the earnings call, J.P. Morgan said the fundamental drivers—specifically AI server demand—outweigh the volatility of the memory market.
“J.P. Morgan increased the price target for Dell Technologies to $280, up from a previous target of $205.”
The upgrade reflects a shift in investor sentiment where the growth potential of AI-optimized servers is now outweighing the cyclical risks of the memory market. For Dell and HPE, this indicates that their transition from general-purpose hardware providers to AI infrastructure partners is being validated by major financial institutions.
