JPMorgan analysts increased their price target for Dell Technologies (NYSE:DELL) to $160 from $155 while maintaining an Overweight rating on the stock. Despite recent underperformance compared to other AI beneficiaries and the broader market, the analysts highlighted Dell’s promising long-term prospects in the AI server market, even as near-term concerns around margin pressures have weighed on the stock. Dell shares have significantly lagged, falling 39% since its last earnings report on May 30, in contrast to a 5% decline in AI stocks and a 4% gain in the S&P; 500. This drop is largely driven by investor concerns over rising competition in the AI server market and its potential impact on margins. However, the analysts believe these concerns are overblown, emphasizing that the AI server market is still in its infancy with significant growth potential ahead. The analysts pointed to several factors that suggest Dell remains well-positioned for future gains. First, the AI server market offers a massive revenue opportunity, which is expected to grow as cloud capital expenditures rise. Second, the margin and profit outlook will likely improve as smaller cloud and enterprise companies begin to dominate AI server purchases beyond 2026. Third, Dell is poised to benefit from a rebound in traditional infrastructure, a segment that has been challenged by the macroeconomic environment but remains a substantial opportunity. Additionally, the enterprise storage market offers significant potential for both revenue growth and margin expansion. Finally, while AI PCs have yet to significantly impact total addressable market (TAM) expansion in the long term, they present a near-term revenue opportunity through both increased volume and higher pricing. The analysts project that Dell could reach an earnings power of approximately $11 per share by fiscal year 2027, with $8 stemming from traditional infrastructure and $3 from AI server growth, operational expense savings, and stock buybacks.