Goldman Sachs reiterated a Buy rating for Dell Technologies and raised its global server market forecast. Dell currently holds a 29% share of the traditional server market. The company’s AI server market share grew to 17%. Analysts project the total AI server market will reach $1.3 trillion by 2030.
CEO Michael Dell stated the ongoing AI boom is driving increased demand for computing hardware. He warned of a potential structural chip shortage in 2027, suggesting sustained pricing power for the company. Dell’s pre-market stock price rose nearly 3% following these comments.
The market absorbed ongoing, planned stock sales by major investor Silver Lake. This selling activity has not triggered a negative reaction in the share price.