Dell sees raised price target as AI server positioning strengthens

On May 21, 2025, significant events unfolded on Wall Street as various analysts reevaluated major companies. Morgan Stanley reiterated an overweight position on Dell, increasing its price target from $89 to $126 per share in anticipation of the company's earnings report. The update reflects confidence in Dell's strong positioning within the AI server market and its ability to gain share amidst stable demand for storage and servers. Additionally, expectations of a boost from the PC segment due to demand pull-forward were highlighted. In contrast, HSBC downgraded UnitedHealth to a reduce rating, citing a combination of factors, including a leadership change, the withdrawal of 2025 guidance, and concerns over alleged Medicare fraud that has significantly affected the company’s market capitalization since the first quarter results were released. HSBC's insights underscore the challenges that the new CEO faces in restoring the firm’s growth trajectory and the looming policy overhang that could impact earnings. Moreover, HSBC also upgraded Bilibili to a buy rating, indicating a more optimistic view regarding the Chinese gaming company's outlook supported by enhanced gaming titles and user engagement metrics, along with a maintained growth in advertising revenue. The firm predicts that leveraging open-sourced models will be pivotal for Bilibili's AI strategy moving forward. Analysts from Citi reiterated their buy rating on Microsoft, suggesting the tech giant continues to lead in enterprise Generative Artificial Intelligence monetization while its recent momentum is expected to bolster earnings potential. Simultaneously, TD Cowen expressed confidence in semiconductor firms including Advanced Micro Devices and Broadcom, attributing their growth prospects to robust technological differentiation that is likely to persist amid changing market conditions. Lastly, Bank of America upgraded AutoZone to a buy rating, shifting from a previous neutral stance. The firm noted that AutoZone displayed stronger sales growth than its competitors across its primary customer channels and is expected to benefit from favorable market dynamics such as inflationary price increases and growing demand for automotive parts amid ongoing shifts in the vehicle market. Overall, these developments highlight a diverse landscape on Wall Street as various companies are reassessed in light of shifting economic conditions.