Dell Technologies Inc. (DELL) shares are on the rise Friday following the release of strong second-quarter earnings that surpassed analyst expectations. The company reported a 9% year-over-year increase in total revenue, fueled by a remarkable 38% growth in its Infrastructure Solutions Group.
Dell’s success can be attributed, in part, to its growing presence in the artificial intelligence (AI) market. “Our AI momentum accelerated in Q2, and we’ve seen an increase in the number of enterprise customers buying AI solutions each quarter,” said Jeff Clarke, vice chairman and COO of Dell.
While Dell is celebrating strong earnings, the company is also reportedly exploring the sale of its cybersecurity subsidiary, SecureWorks Corp. (SCWX). This move is seen as an effort to reduce debt.
Despite the potential sale of SecureWorks, analysts remain optimistic about Dell’s future. Bank of America Securities maintained its Buy rating on Dell and raised its price target from $150 to $155 after the earnings release.
Wall Street analysts, on average, have a 12-month price target of $145.42 for Dell Technologies, suggesting potential upside for the stock. This average target is based on 11 positive ratings and one neutral rating, with no analysts issuing negative ratings.
Dell Technologies stock has seen significant gains this year, rising 44% year-to-date. The stock is currently trading below its 50-day moving average of $120.92.
As of Friday’s trading, Dell Technologies shares are up 2% at $112.96.
