Is the computing power supply chain about to receive another catalyst? Citi bets on AI server leader Dell, expecting a significant increase in performance, directly pointing to the benefits of AI infrastructure.

Citi raised Dell’s target price target from 135 US dollars to 160 US dollars within 12 months, which means that Citi is shifting from being quite cautious about Dell’s stock price outlook to being optimistic.

Wall Street financial giant Citigroup recently launched an AI server manufacturer $Dell Technologies (DELL.US)$ The target price was raised sharply to $160 and maintained a “buy” rating. They are Bullish about Dell’s performance growth data for the second calendar quarter and the full year of 2025 and 2026. This also means that Citi’s Analyst team is extremely Bullish about Dell’s results to be released at the end of August and future performance guidelines to be announced by Dell management. At that time, core companies in the AI computing power industry chain whose stock prices have repeatedly reached record highs since this year will also usher in significant positive catalysts.

According to information, as a core link in the global AI computing power industry chain — that is, the absolute leader in the AI server field, Dell can be described as one of the “10 AI technology stocks that Wall Street is most concerned about”. This list also includes$NVIDIA (NVDA.US)$,$Taiwan Semiconductor (TSM.US)$,$Broadcom (AVGO.US)$And leaders in the AI computing power industry chain such as AMD.

A team of Analyst led by Citigroup Analyst Asiya Merchant recently sharply raised Dell’s target price from $135 to $160 within 12 months, which means that Citi is shifting from being quite cautious about Dell’s stock price outlook to an upward trend, and maintaining its “buy” rating. Dell’s stock price closed at $138.86 as of Thursday’s US stock close.

This definitive bullish Research Reports comes before Dell’s Earnings Reports was officially released. According to the Institutions’s Analyst team’s opinion, the latest supply chain channel survey shows that global companies’ hardware spending is showing a significant expansion trend. In particular, AI computing power infrastructure spending continues to show a surge trend. It is expected that Dell’s AI server business will also expand strongly, which in turn will drive the company’s performance to exceed expectations. The channel survey also showed that with the exception of printing and consumer computer products, Dell’s other core business areas are expected to perform far better than market expectations.

Another AI server giant, Hon Hai has strong performance

Citi quoted financial data from Hon Hai, another AI server manufacturer, in the Research Reports as saying that Hon Hai’s performance highlights the continued strong growth in AI computing power device support, emphasizing that Hon Hai is the “AI chip hegemon” NVIDIA’s largest AI server product foundry. Hon Hai has made full profit in the big wave of AI infrastructure construction, and Dell’s performance, which is also a leader in AI Server, is expected to show significant growth.

According to Hon Hai’s latest performance report, for the first time, the AI server foundry business surpassed the smart consumer electronics business that Hon Hai has relied on for a long time to become the largest source of revenue. The business has driven Hon Hai’s total revenue to reach a record high of NT$1.79 trillion (about 59.73 billion US dollars), up 16% year on year, while Net income increased 27% year on year. Foxconn, the core brand of Hon Hai, is the largest manufacturer of Apple iPhones.

In terms of performance outlook, Hon Hai expects revenue from AI Server to soar by more than 170% year on year in the third quarter, driving overall revenue to continue to achieve significant year-on-year growth. The full-year revenue outlook is in line with the performance guidance given in May this year, and is expected to achieve strong growth.

Dell’s performance is expected to drive the AI computing power industry chain to continue its bullish trajectory

According to the performance report released by Dell at the end of May, the AI server order value for the quarter ending May 2 even surpassed the overall value brought by AI server shipments throughout the 2025 fiscal year, and Dell expects the profitability of its computer, server and storage business to continue to expand significantly.

In the performance report released at the end of May, Dell maintained its previous forecast of actual sales of 15 billion US dollars of AI Server for the full year. This represents an approximately 50% increase from the already strong 9.8 billion dollar AI server sales for the fiscal year ending January 2025. If the results and future prospects announced at the end of August continue to exceed expectations, it is expected to push the stock prices of core companies in the AI computing power industry chain to continue the extremely strong bull market trajectory.

Dell can be called one of the biggest winners in this unprecedented wave of AI infrastructure since 2023, and its stock price has risen as much as 200% since 2023. The company mainly benefits from the continuous blowout expansion demand for high-performance AI servers. Core customers include the world’s richest people,$Tesla (TSLA.US)$xAI, founded and led by CEO Musk, and a cloud computing giant$Microsoft (MSFT.US)$with$Amazon (AMZN.US)$, as well as those funded by NVIDIA$CoreWeave (CRWV.US)$ and the world’s largest AI data center operators.

Dell and AI server’s biggest competitor$Super Micro Computer (SMCI.US)$Recently, Hon Hai and Hon Hai have been increasing production capacity to manufacture B200/GB200 AI Server equipped with the latest version of NVIDIA GPUs — that is, Blackwell-architected AI GPUs, to win larger scale business from companies that build and use artificial intelligence applications. Many generative AI applications that drive large models of ChatGPT, Claude, and Sora Wensheng’s video all require enormous data processing capabilities and increasingly expanding hardware computing resources.

Through a close partnership with NVIDIA over many years, Dell uses the latest NVIDIA GPUs and integrates a full set of CUDA acceleration tools to provide powerful GPU acceleration capabilities for global enterprises to deploy AI technology — AI training/inference workloads. Dell’s deep partnership with NVIDIA ensures optimal integration and performance optimization of hardware and CUDA software systems with the highest priority.

Edit/Kevin