Dell Technologies (NYSE: DELL) shares climbed more than 5% in Wednesday trading after Goldman Sachs lifted its outlook for the global server market, underscoring sustained optimism around artificial intelligence infrastructure spending. The investment bank now projects the overall server market will reach $1.5 trillion by 2030, representing a compound annual growth rate (CAGR) of 39% from 2025 to 2030.
Goldman Sachs specifically raised its AI server market forecast to $1.3 trillion by 2030, implying a 46% CAGR. Traditional servers are expected to grow to approximately $192 billion, a 17% CAGR over the same period. The revised estimates reflect accelerating demand for AI-optimized hardware as data center operators expand capacity.
According to Goldman Sachs, Dell's market share in traditional servers increased to 29% in the second quarter, while its share of the AI server market reached 17%. NVIDIA remains the dominant player in AI servers with a 42% share, followed by white-box manufacturers at 24%. The bank noted that branded server vendors face limited room in the AI segment, but maintained a Buy rating on Dell with a price target of $570.
Goldman also reiterated a Buy rating on Hewlett Packard Enterprise (HPE) with a $75 target, while keeping a Sell rating on Super Micro Computer (SMCI) with a $34 target. The divergence highlights the bank's preference for established server vendors over higher-risk names.
Investors have increasingly focused on Dell's role in supplying infrastructure for AI data centers. Recent quarterly results showed record AI server orders and a sharply higher earnings trajectory, fueling the stock's rally. The broader AI infrastructure trade has also lifted shares of companies providing equipment and technology for the ongoing data center buildout.
Alongside the market move, four Silver Lake-affiliated entities filed Form 144 notices to sell a combined 80,010 Class C Dell shares worth approximately $42.75 million. The sellers include Silver Lake Partners IV, Silver Lake Partners V DE, Silver Lake Technology Investors IV, and Silver Lake Technology Investors V. The shares were converted from Class B to Class C on the same day before the proposed sales, with Merrill Lynch listed as broker.
Form 144 filings are notices of proposed sales and do not confirm that all shares were ultimately sold. The latest filings add to a broader sell-down by Silver Lake and related entities. SEC filings show that Silver Lake-affiliated entities and related holders sold approximately 1.86 million Dell shares between June 9 and September 8, with the pace accelerating in September.
Silver Lake has longstanding ties to Dell, having partnered with Michael Dell in 2013 to take the company private. Dell later returned to public markets through the VMware-related transaction, with Silver Lake remaining a major shareholder. The recent selling comes as Dell shares have rallied amid investor enthusiasm for its AI infrastructure business.
For context, the broader market has seen mixed movements as investors await the Federal Reserve's rate decision. Nasdaq climbs as Fed rate decision nears, while oil prices retreat from highs. In the AI hardware space, SK Hynix shares rally on Intel deal talks, though the company denies a confirmed agreement. Meanwhile, Solana's Transaction V1 upgrade fails to halt SOL slide, highlighting divergent trends across tech sectors.
This article is for informational purposes only and does not constitute financial advice.
