Bank of America has kept a positive recommendation on Dell, telling investors the company is positioned to benefit meaningfully from continued investment in AI infrastructure.
Analyst Wamsi Mohan told clients that AI server demand remains "intact and growing in 2026 despite recent memory inflation." Mohan pointed to continued enterprise adoption, memory costs that are still a contained portion of the total bill of materials, and strong guidance from original equipment manufacturers as supporting factors behind the bank's outlook.
BofA's forecast models show AI server unit volumes rising 28% year-on-year in 2026, while average selling prices are expected to climb by 50%. Those assumptions produce a projected AI server revenue market of $495 billion for 2026, a figure the bank notes is more than double the size recorded last year.
Within that market, BofA estimates Dell will account for 12% of total AI server revenue in 2026, an increase of 200 basis points from the prior year. That share corresponds to a Dell AI server revenue estimate of $60 billion for 2026 - above the company's own $50 billion guidance for the same period. The bank cites Dell's history of outperformance as evidence of upside, noting the company generated $25 billion of AI server revenue last year against an initial guide of $15 billion.
BofA also highlights Dell's higher-than-average average selling prices, which the bank says are running 82% above the industry mean. The bank attributes those premium ASPs to Dell's greater mix of Nvidia and AMD GPUs and its stronger exposure to Tier 2 cloud customers.
Looking beyond 2026, the bank projects the AI server industry will expand at a 26% compound annual growth rate through 2030. BofA attributes that long-term expansion to increasing GPU complexity and rising attach rates for networking and storage components.
The report underscores areas the analyst sees as drivers of the market: enterprise adoption of AI workloads, OEM guidance that supports demand, and component dynamics where memory cost, while recently elevated, does not dominate total system cost.
The research note also references investment tools that evaluate Dell against a broad set of companies using a wide range of financial metrics. These tools are described as analyzing fundamentals, momentum, and valuation to identify attractive risk-reward profiles across the market.
Bottom line: BofA remains constructive on Dell based on its view of sustained AI server demand, favorable component economics as a share of system cost, Dell's premium ASPs and historical tendency to outpace guidance, leading the bank to forecast meaningful revenue upside for the company in 2026.