Computing power industry chain is about to see another catalyst? Citigroup bets on the AI server leader Dell Technologies, Inc. Class C (DELL.US), performance greatly improved, pointing directly to AI infrastructure dividends.

Recently, Wall Street financial giant Citigroup raised the target price of AI server manufacturer Dell Technologies, Inc. Class C (DELL.US) to $160 and maintained a "buy" rating, optimistic about Dell Technologies, Inc. Class C's second calendar quarter performance as well as the full-year performance growth data for 2025 and 2026. This also means that Citigroup's analyst team is extremely bullish on the performance of Dell Technologies, Inc. Class C, which is expected to be announced at the end of August, as well as the future performance guidance from Dell Technologies, Inc. Class C management. This will likely be a significant catalyst for the stock price of the core company in the AI computing industry chain, which has repeatedly hit historical highs this year. As the absolute leader in the global AI computing industry chain - that is, in the field of AI servers, Dell Technologies, Inc. Class C is one of the "10 most watched AI technology stocks on Wall Street", a list that also includes NVIDIA Corporation, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, Broadcom Inc., and AMD, among other leading companies in the AI computing industry chain. Citigroup analyst Asiya Merchant and her team recently raised the 12-month target price for Dell Technologies, Inc. Class C from $135 to $160, indicating a shift from cautious to optimistic views on the stock price of Dell Technologies, Inc. Class C, and maintaining a "buy" rating. As of the Thursday closing of the U.S. stock, Dell Technologies, Inc. Class C stock closed at $138.860. This bullish theme stems from Dell Technologies, Inc. Class C's financial report to be officially announced. According to the analysts' team, the latest supply chain channel survey shows significant expansion in global enterprise hardware spending, especially in the AI computing infrastructure sector. It is expected that Dell Technologies, Inc. Class C's AI server business will also show strong growth, driving the company's performance to exceed expectations. The survey also indicates that, apart from printing and consumer computer products, Dell Technologies, Inc. Class C's performance in other core business areas is expected to far exceed market expectations. Another AI server giant, Foxconn, has shown strong performance In the research report, Citigroup cited financial data from another AI server manufacturer, Foxconn, indicating that Foxconn's performance highlights the continued strong growth in support for AI computing devices. As the largest contract manufacturer of AI servers for "AI chip king" NVIDIA Corporation, Foxconn is benefiting greatly from the wave of AI infrastructure construction and is expected to see significant growth in performance, similar to Dell Technologies, Inc. Class C's projections. Foxconn's latest financial report shows that its AI server contract manufacturing business has surpassed its long-standing reliance on the smart consumer electronics business becoming the largest revenue source. This business has pushed Foxconn's total revenue to a historical high of NT$1.79 trillion (approximately $59.73 billion), a 16% year-on-year increase, with net profit increasing by 27%. Foxconn's core brand, Foxconn, is the largest manufacturer of Apple Inc.'s iPhones. In terms of performance outlook, Foxconn expects revenue from AI servers in the third quarter to surge by over 170% year-on-year, driving overall revenue to continue to show significant growth. The full-year revenue outlook is consistent with the performance guidance given in May, and strong growth is expected. Dell Technologies, Inc. Class C's performance expected to drive continued bullish trend in the AI computing industry chain Dell Technologies, Inc. Class C's performance report released at the end of May showed that the value of AI server orders up to May 2nd even exceeded the overall value of AI server shipments for the entire 2025 fiscal year, indicating that Dell Technologies, Inc. Class C expects its computer, server, and storage business profitability to continue to expand significantly. In the performance report released at the end of May, Dell Technologies, Inc. Class C maintained its earlier forecast of $15 billion in actual sales of AI servers for the year. This means that compared to the already strong $9.8 billion in AI server sales by the end of the fiscal year in January 2025, there is an approximate 50% increase. If the performance report and future outlook continue to exceed expectations at the end of August, it is expected to drive the stock price of core companies in the AI computing industry chain to continue on a strong bullish trajectory. Dell Technologies, Inc. Class C is considered one of the biggest winners in this unprecedented wave of AI infrastructure since 2023, with a stock price increase of up to 200% since 2023. The company has benefited significantly from the continued demand expansion for high-performance AI servers, with core customers including the world's richest person, Elon Musk, founder and CEO of Tesla, Inc., as well as cloud computing giants Microsoft Corporation and Amazon.com, Inc. AWS, as well as global large-scale AI data center operators supported by NVIDIA Corporation such as CoreWeave Inc. Dell Technologies, Inc. Class C, along with AI server giant Super Micro Computer, Inc. and Foxconn, have been increasing their manufacturing capacity for AI servers featuring the latest GPU from NVIDIA Corporation - the Blackwell architecture AI GPU B200/GB200 server. This is to win larger-scale business from companies building and using AI applications. Many generative AI applications such as ChatGPT, Claude, and Sora's video require immense data processing capabilities and expanding hardware compute resources. Through years of close collaboration with NVIDIA Corporation, Dell Technologies, Inc. Class C uses the latest NVIDIA Corporation GPUs and integrates a full suite of CUDA acceleration tools to provide powerful GPU acceleration for AI training/inference workloads, an indispensable technology for global enterprises deploying AI technology. The deep collaboration between Dell Technologies, Inc. Class C and NVIDIA Corporation ensures the highest level of hardware and CUDA software system integration and performance optimization.