US Top News and Analysis | Dell has been on fire this year. Why UBS is downgrading the PC maker
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UBS downgraded Dell Technologies to “neutral” from “buy,” raising its price target to $243 (up from $167) and forecasting roughly a 7% downside from the recent close. The bank’s analyst, David Vogt, said the surge in AI‑driven server demand is now largely priced in, making the risk‑reward balance more even despite Dell’s strong execution over the past year. Dell’s stock has risen 172% over the last 12 months—far outpacing the S&P 500’s 31% gain—and its AI server business generated $13 billion in revenue in the first quarter of fiscal 2027. While UBS expects future AI orders to shift toward Dell, it cautions that Dell’s capital‑expenditure growth may lag that of hyperscalers like Meta, Google, Amazon, and Microsoft. The downgrade runs counter to the broader analyst consensus, with 20 of 28 covering analysts rating the stock as a buy or strong buy.
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