Bank of America is bullish on Dell Technologies, Inc. Class C (DELL.US) and Hewlett Packard Enterprise Co. (HPE.US) as smart AI engines for growth.

Bank of America Corp has raised the target price for Dell Technologies, Inc. Class C (DELL.US) from $205 to $246, and increased the target price for Hewlett Packard Enterprise Co. (HPE.US) from $32 to $38, as these two companies are expected to benefit from the development of AgenticAI. Wamsi Mohan's team of analysts at Bank of America stated in their report: "The next phase of AI is AgenticAI, which requires more powerful CPU hardware, storage access, and execution systems for its multi-step workloads. AgenticAI transforms individual inference events into a series of workflows, leading to more inference events for each task, an increase in sustained workloads, and driving increased overall infrastructure spending on AI servers, smart infrastructure systems, and storage devices. The importance of AgenticAI for Dell Technologies, Inc. Class C and Hewlett Packard Enterprise Co. is increasingly evident, boosting demand for AI servers and storage, as well as driving growth in their traditional server businesses. Dell Technologies, Inc. Class C has been selling traditional servers to emerging cloud providers, and we expect sales momentum for traditional servers to further strengthen in the coming years." Analysts further stated that as demand grows due to AgenticAI, Dell Technologies, Inc. Class C and Hewlett Packard Enterprise Co. are expected to gain more market share in the server market. Analysts added: "The shift towards AgenticAI will initially boost demand for AI servers, as inference frequency increases and model applications transition to sustained production workloads. Dell Technologies, Inc. Class C is a leading OEM in the AI server field, with an estimated global AI server revenue of $496 billion in 2026 and a market share of 12%; and its share is expanding rapidly among emerging cloud providers, with revenues this year estimated to reach $10 billion. Despite Hewlett Packard Enterprise Co.'s focus shifting towards networking following the acquisition of Juniper Networks, Inc. (JNPR), as a high-end AI server OEM, the company is expected to benefit, with our estimate predicting AI server revenue of $6.5 billion in the 2026 fiscal year."