Key Moments
- Bank of America raised its price target on Dell Technologies to $172 from $155, citing stronger-than-expected AI-server revenue projections.
- BofA increased its Sandisk price target to $900 from $850 amid a “strong NAND outlook,” firm NAND pricing, and tightening supply.
- The bank flagged ongoing tightness in optical fiber supply and warned that pull-forward PC purchases tied to higher memory prices could weaken industry demand in the second half.
BofA Turns More Optimistic on AI Server Demand
Bank of America has lifted its price targets for Dell and Sandisk following an Asia supply-chain review that pointed to “very robust” demand for AI servers.
Analyst Wamsi Mohan wrote that recent checks show “demand for AI servers remains strong,” with most near-term revenue tied to GB300-based platforms and additional VR-rack shipments anticipated in the second half of the year.
Dell AI-Server Outlook and Target Revision
The firm said it came away “favorably on Dell Technologies,” adding that Dell’s $50 billion fiscal 2027 AI-server revenue outlook “could end up conservative.”
BofA now expects Dell to generate $15 billion in AI-server revenue in the first quarter, up from its previous projection of $13 billion, and has increased its full-year AI-server revenue estimate to $60 billion from $50 billion.
Reflecting the more constructive view, BofA raised its price target for Dell to $172 from $155.
| Company | Metric | Previous | New |
|---|---|---|---|
| Dell Technologies | Q1 AI-server revenue forecast | $13 billion | $15 billion |
| Dell Technologies | Full-year AI-server revenue estimate | $50 billion | $60 billion |
| Dell Technologies | Price target | $155 | $172 |
Sandisk Benefits From Strong NAND Environment
Sandisk also saw its valuation target increased, with BofA pointing to a “strong NAND outlook” and tightening supply conditions.
The firm observed that NAND pricing “continues to be strong” and that customers are increasingly seeking long-term agreements.
BofA now models a 63% quarter-over-quarter average selling price (ASP) increase for the March quarter and has raised its June-quarter ASP growth forecast to 20%. The price target for Sandisk was lifted to $900 from $850.
| Company | Metric | Period | Forecast | Previous |
|---|---|---|---|---|
| Sandisk | ASP change (QoQ) | March quarter | 63% increase | – |
| Sandisk | ASP change (QoQ) | June quarter | 20% growth | – |
| Sandisk | Price target | – | $900 | $850 |
Supply Constraints and PC Demand Risks
The note also underscored ongoing tightness in global optical fiber supply, even as personal computer demand remains uneven.
BofA cautioned that accelerated purchasing driven by rising memory prices could leave the second half “weaker,” creating potential “incremental downside” for overall industry PC demand.
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