Dell is a new Top Pick at Bank of America

Analysts at Bank of America revealed they are adding Dell to their US 1 List. The list is a a collection of the bank’s best investment ideas.

It is made up of stocks from the bank’s universe of Buy-rated, US-listed names (including ADRs). BofA also renewed Amazon (NASDAQ:) after 52 weeks on the list and removed Amphenol Corp (NYSE:) from the list, although it still remains Buy-rated.

In a note to clients at the end of May, Bank of America raised its target price for Dell shares to $180 from $130, stating they see a positive setup for the company heading into 2025.

The bank highlighted factors such as AI server demand, storage demand driven by an expected IBM (NYSE:) mainframe refresh, and demand from an expected PC refresh as factors driving its bullish thesis.

“Dell Technologies (NYSE:) World 2024 took place May 20th-23rd where Dell introduced Dell AI Factory and expanded its AI portfolio with 5 new AI-PCs, all-flash file storage, network architecture in addition to AI services offerings,” said BofA. “We see these new products supporting Dell’s growth in C25.”

The firm also said that the company’s potential inclusion in the is another potential catalyst for the stock.