TLDR
- Bank of America raised Dell’s price target to $246 (from $205) and HPE’s to $38 (from $32)
- Both stocks retain Buy ratings from analyst Wamsi Mohan
- Agentic AI is driving demand for CPU-intensive servers and storage infrastructure
- Dell holds ~12% AI server revenue share; HPE expected to generate $6.5B in AI server revenues in 2026
- BofA says its models may be conservative given accelerating agentic AI demand
Bank of America raised price targets on Dell Technologies and HP Enterprise on Monday, citing the rise of agentic AI as a catalyst for stronger demand in both AI and traditional server hardware.
Analyst Wamsi Mohan lifted Dell’s target to $246 from $205 and HPE’s to $38 from $32, keeping Buy ratings on both.
The upgrades are not about AI hype in general. They are about a specific shift in how AI workloads are structured.
Traditional AI inferencing is a single event. Agentic AI, by contrast, turns one request into a chain of sequential steps, each requiring its own inference. That multiplies the compute demand per task.
BofA described it this way: agentic AI “turns one discrete inferencing event into sequenced workflows, driving more inference events per task.” That means more demand for AI servers, storage, and the infrastructure that connects them.
The key detail here is the role of CPUs. Because agentic workflows are sequential and interdependent, they lean harder on CPUs than traditional AI workloads do. That plays directly into Dell and HPE’s core server businesses, not just their dedicated AI offerings.
Dell’s Position in AI Servers
Dell is ranked as a leading OEM in AI servers, with around 12% of total AI server revenues. BofA puts the total AI server market at $496 billion for 2026. Dell is also seeing share gains accelerating at Neo Cloud providers.
On infrastructure solution stacks, BofA estimates Dell holds 11% OEM share, putting it among the top beneficiaries as demand builds.
Mohan’s target of $246 reflects a higher multiple, justified by increased demand across both AI server and traditional compute lines.
HPE’s Revenue Outlook
HPE is expected to generate $6.5 billion in AI server revenues in 2026. The firm holds 9% OEM share in infrastructure solution stacks, which BofA also flags as a growth area.
The new price target of $38, up from $32, reflects BofA’s view that HPE’s traditional server business gets a meaningful lift alongside its AI-specific products.
BofA was direct in noting that its models “are likely conservative given the pickup in agentic AI demand.” That is a rare admission, and it suggests the analyst sees room for further upside.
Dell stock was down 0.06% and HPE was up 1.63% at the time of the note. Neither stock made a dramatic move on the day, but the raised targets put both on the radar of investors tracking AI infrastructure plays.
The price target changes were published April 27, 2026.
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