. The firm wrote in a report that Dell "is emerging as an early Generative AI winner," referring to the latest developments in artificial intelligence.
Morgan Stanley sees Dell benefiting from booming demand for artificial intelligence servers as more companies focus their spending on that corner of the hardware market. The analysts recommend buying the stock and lifted the price target to $70. "DELL is the first company in our coverage to directly benefit from the Gen AI spending cycle," the analysts wrote, pointing to Dell's disclosure of a $2 billion backlog of AI servers.for Apple but noted risks of increased regulation around the app store.
Prior to Friday, Dell's biggest one-day gain since 2018 was a 14% increase in March 2020, according to FactSet. Its previous record close was $60.77 in February of this year. Correction: A headline for this story has been updated to reflect that Dell returned to the public market in 2018. A previous headline misstated the year.