Key insights
- Bank of America reiterated its bullish view on Dell, citing robust AI server demand growth through 2026 and beyond. BofA projects significant revenue upside for Dell, estimating $60 billion in AI server revenue by 2026, driven by strong enterprise adoption and premium ASPs. This positive outlook on a major tech player suggests continued investment in AI infrastructure and a potentially bullish signal for related stocks.
Investing.com -- Bank of America maintained its bullish stance on one key AI server name, arguing the company is best positioned to capitalize on what the bank sees as an enduring boom in AI infrastructure spending.
PC and server giant Dell (NASDAQ: DELL) is the stock in question.
BofA analyst Wamsi Mohan says AI server demand is "intact and growing in 2026 despite recent memory inflation," pointing to continued enterprise adoption, relatively contained memory costs as a share of total bill of materials, and strong OEM guidance.
The bank models AI server unit growth of 28% year-on-year in 2026, with average selling prices rising 50%, producing a total AI server revenue market of $495 billion, more than double last year's figure.
Dell is seen as a standout beneficiary. BofA estimates Dell commands 12% of total AI server revenue, up 200 basis points year-on-year, with a 2026 revenue estimate of $60 billion, above Dell's own guidance of $50 billion.
The bank sees meaningful upside, citing Dell's strong track record of beating targets, having delivered $25 billion in AI server revenues last year against an initial guide of just $15 billion.
BofA attributes Dell's premium ASPs, which are running 82% above the industry average, to its higher mix of Nvidia and AMD GPUs and greater exposure to Tier 2 cloud customers.
Looking further ahead, BofA projects AI server industry revenues growing at a 26% compound annual rate through to 2030, driven by accelerating GPU complexity and expanding networking and storage component attach rates.