Barclays upgraded Dell to Overweight from Equal Weight, citing strong momentum in its AI server business. Analyst Tim Long maintained a $148 price target, pointing to better-than-expected AI server orders and improving opportunities in enterprise storage. The bank sees more upside ahead for the hardware giant as demand for AI infrastructure accelerates.

The upgrade stems from Dell's ability to manage operating margins in its AI segment, even as gross margins remain pressured. Barclays noted Dell plans to ship about $9.4 billion in AI servers this quarter, boosting full-year projections to roughly $25 billion. The analyst models explosive 155% and 60% order growth for fiscal 2026 and 2027.

Long also highlighted a recovery in traditional enterprise server and storage markets. Dell's supply chain leadership and increasing intellectual property mix position it well for upgrades from its large installed base of older hardware. While the analyst remains neutral on the broader hardware sector, he warned that low margins and rising memory costs could limit industry-wide upside.