Dell has secured its position as a major player in the AI infrastructure space. Earlier this year, the company secured a $5 billion deal to supply advanced AI servers to Elon Musk's xAI, powering the startup's next-generation and ever-expanding AI compute workloads. Dell also recently signed a deal with AI hyperscaler CoreWeave to deliver high-performance server racks that underpin its rapidly expanding cloud services platform.

A team of Goldman analysts, led by Michael Ng, visited Dell's headquarters in Round Rock, Texas, on Thursday. They met with several Dell executives, including Arthur Lewis (President of the Infrastructure Solutions Group) and Paul Frantz (Investor Relations), to gain more color on Dell's rapid innovation and strong execution in the AI infrastructure space.

"The field trip gave us a deeper appreciation for DELL's AI server engineering and design capabilities, which we view as a competitive advantage in the market," Ng told clients. 

The analysts' biggest takeaway is that Dell has established itself as a major player in AI infrastructure, driven by its world-class engineering, deep relationships across customers and supplier ecosystem, and accelerating demand for its AI servers—highlighted by a $14.4 billion backlog for its advanced servers. 

Here's the list of takeaways the analysts had from their investor trip to Dell's AI lab:

Ng maintains a "Buy" rating on Dell with a 12-month price target of $140 (up from $130).

However, the stock's price action over the past 18 months—peaking around $179 in the first half of 2024 and trending lower with a series of lower highs—remains a concerning technical signal.

.  .  .