08:45 AM EST, 11/11/2024 (MT Newswires) -- Dell Technologies' ( DELL ) artificial intelligence infrastructure momentum is building "even faster" as more than $20 billion of AI server revenue is anticipated for the company in fiscal 2026, Morgan Stanley said in a Monday note.

Morgan Stanley expects the company to ship 48,000 8-GPU AI server equivalents in fiscal 2026, representing 23% growth year-over-year, the note said.

Dell's AI server delivery to Blackwell early next year makes it very "well-positioned", according to the note.

Additionally, Morgan Stanley said that Super Micro Computer's ( SMCI ) recent challenges represent a "key opportunity" for Dell to gain "incremental share" in fiscal 2026 and unlock an "AI server bull case."

Morgan Stanley expects Dell to report fiscal 2025 earnings of $7.86 per share on revenue of $96.7 billion. The investment firm expects the company to report fiscal 2026 earnings of $10.5 per share on revenue of $110.37 billion.

Morgan Stanley raised Dell's price target to $154 from $136 and maintained an overweight rating on the stock.

Shares of the company were up over 2% in recent premarket activity.

Price: 134.00, Change: +3.13, Percent Change: +2.39