10:47 AM EDT, 08/29/2025 (MT Newswires) -- Dell Technologies ( DELL ) likely continued losing market share in the personal computer market in the fiscal second quarter, though momentum in artificial intelligence orders should help drive its share price higher, UBS Securities said in a note emailed Friday.

The PC maker late Thursday beat Wall Street's estimates for the quarter, though revenue in the consumer category of its client solutions group, which includes PCs, declined 7% year-on-year.

Overall sales for the client solutions group rose 1%. UBS said that's about 500 basis points slower than HP (HPQ), which earlier this week posted a 6% annual increase in personal systems revenue for its fiscal third quarter.

"We believe (HP) picked up share from Dell again in the quarter," UBS analysts, including David Vogt, wrote.

Dell's stock declined nearly 10% in Friday trade.

The company's storage revenue declined 3%, missing the UBS estimate by 6% and reinforcing checks indicating a muted backdrop, particularly in North America, Vogt said.

The company, however, increased its fiscal 2026 target for AI server shipments by $5 billion to $20 billion.

"We've now shipped $10 billion of AI solutions in the first half of (fiscal 2026), surpassing all shipments in (2025)," Chief Operating Officer Jeff Clarke said in a statement late Thursday. "Demand for our AI solutions continues to be exceptional, and we're raising our AI server shipment guidance."

While Dell's shares will likely trade lower in the near term, strong AI order momentum should support the stock in the long term, Vogt of UBS said, reiterating the brokerage's buy rating.

Dell reported AI-optimized server revenue of $8.2 billion for the quarter, up 165% annually and above UBS' $7 billion view, according to the brokerage's report.

Dell lifted its full-year guidance for adjusted earnings per share and revenue, though its third-quarter $2.45 EPS forecast missed the Street's view at the time.

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