Key Takeaways
- Bank of America increased Dell’s price objective to $246 (previously $205) and HPE’s to $38 (previously $32)
- Analyst Wamsi Mohan maintains Buy recommendations for both companies
- Sequential AI workflows are creating expanded requirements for CPU-focused servers and storage systems
- Dell captures approximately 12% of AI server revenue market; HPE projected to reach $6.5B in AI server sales by 2026
- BofA acknowledges its forecasts may underestimate the acceleration in agentic AI adoption
Bank of America elevated price objectives for Dell Technologies and HP Enterprise this Monday, pointing to agentic AI as the driving force behind intensifying demand across both specialized AI hardware and conventional server equipment.
Analyst Wamsi Mohan increased Dell’s valuation to $246 from $205 and moved HPE’s objective to $38 from $32, while maintaining Buy recommendations for both organizations.
These adjustments reflect a particular transformation in AI workload architecture rather than broad market enthusiasm.
Conventional AI inference operates as an isolated event. Agentic AI fundamentally changes this model by converting individual requests into sequences of connected steps, with each step requiring separate inference operations. This structure multiplies computational requirements for every task.
BofA characterized this evolution: agentic AI “turns one discrete inferencing event into sequenced workflows, driving more inference events per task.” The result is heightened demand for AI servers, storage solutions, and the infrastructure connecting these systems.
The critical factor involves CPU utilization. Sequential and interdependent agentic workflows place greater emphasis on CPU resources compared to traditional AI operations. This dynamic directly benefits Dell and HPE’s established server portfolios, extending beyond their specialized AI product lines.
Dell’s Market Standing in AI Infrastructure
Dell ranks among the prominent OEMs in AI server manufacturing, commanding roughly 12% of aggregate AI server revenue. BofA projects the complete AI server market will reach $496 billion throughout 2026. Dell continues expanding its presence with Neo Cloud providers.
Regarding infrastructure solution stacks, BofA calculates Dell maintains 11% OEM market share, positioning the company among primary beneficiaries as requirements escalate.
Mohan’s $246 target incorporates an enhanced valuation multiple, supported by growing demand spanning both AI server categories and traditional computing platforms.
HPE’s Revenue Projections
HPE stands positioned to deliver $6.5 billion in AI server revenues throughout 2026. The company holds 9% OEM share within infrastructure solution stacks, which BofA identifies as an expanding sector.
The revised price objective of $38, elevated from $32, represents BofA’s assessment that HPE’s conventional server operations will experience substantial growth alongside AI-dedicated offerings.
BofA explicitly stated its models “are likely conservative given the pickup in agentic AI demand.” This acknowledgment carries significance, suggesting the analyst perceives potential for additional upside movement.
Dell stock declined 0.06% while HPE advanced 1.63% at the time of the analysis. Neither equity experienced sharp movements that day, though the elevated targets position both companies prominently for investors monitoring AI infrastructure opportunities.
The price target revisions were released April 27, 2026.
