Key Highlights
- BofA analyst elevates Dell’s price objective to $246 (previously $205) and HPE’s to $38 (previously $32)
- Buy recommendations maintained for both technology companies by Wamsi Mohan
- Sequential AI workflows creating unprecedented demand for processor-heavy servers and storage systems
- Dell commands approximately 12% of AI server market share; HPE projected to reach $6.5B in AI server sales by 2026
- Bank of America acknowledges its forecasts may underestimate the rapid expansion of agentic AI adoption
Bank of America Securities upgraded its price objectives for Dell Technologies and Hewlett Packard Enterprise this week, pointing to the emergence of agentic artificial intelligence as a powerful driver for enhanced demand across both specialized AI hardware and conventional server platforms.
Equity analyst Wamsi Mohan increased Dell’s price objective to $246 from the prior $205 level, while elevating HPE’s target to $38 from $32, maintaining Buy recommendations on both enterprise technology providers.
These target adjustments aren’t rooted in broad AI enthusiasm. Instead, they reflect a fundamental transformation in how artificial intelligence computing tasks are being executed.
Conventional AI inference represents a standalone operation. Agentic AI, however, converts a single query into multiple interconnected stages, with each phase demanding its own inference process. This architectural shift multiplies computational requirements for every individual task.
Bank of America characterized this evolution as follows: agentic AI “turns one discrete inferencing event into sequenced workflows, driving more inference events per task.” The result is heightened demand for AI-optimized servers, storage capacity, and the underlying infrastructure connecting these components.
The critical factor involves central processing units. Since agentic operations follow sequential, interdependent patterns, they place substantially greater emphasis on CPU resources compared to conventional AI applications. This dynamic benefits Dell and HPE’s traditional server portfolios, extending beyond their specialized AI product lines.
Dell’s Market Standing in AI Infrastructure
Dell ranks among the premier original equipment manufacturers in the AI server segment, capturing roughly 12% of aggregate AI server revenue. BofA projects the complete AI server marketplace at $496 billion through 2026. Dell continues experiencing accelerated market share expansion among Neo Cloud infrastructure providers.
Regarding comprehensive infrastructure solution platforms, BofA calculates Dell possesses 11% OEM market share, positioning the company among primary beneficiaries as demand intensifies.
Mohan’s $246 target incorporates an expanded valuation multiple, supported by strengthening demand across both AI-specific servers and traditional computing infrastructure.
HPE’s Financial Projections
HPE is forecast to produce $6.5 billion in AI server revenue throughout 2026. The enterprise maintains 9% OEM share within infrastructure solution stacks, which BofA identifies as an expanding opportunity sector.
The revised $38 price objective, elevated from $32, embodies BofA’s assessment that HPE’s conventional server operations receive substantial momentum alongside its AI-dedicated offerings.
BofA explicitly acknowledged that its financial models “are likely conservative given the pickup in agentic AI demand.” Such candid assessment is uncommon, suggesting the analyst perceives potential for additional upside.
Dell shares declined 0.06% while HPE advanced 1.63% when the research note was published. Neither equity experienced significant volatility that session, though the elevated targets position both companies prominently for investors monitoring AI infrastructure opportunities.
The price target revisions were released April 27, 2026.
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