Dell Technologies (NYSE:DELL) has reportedly postponed the launch of its ambitious AI infrastructure upgrade project, “Project Maverick,” due to unforeseen challenges, according to a report.
Maverick Launch Timeline Slips
The project's first phase, originally scheduled to retire most backend systems in one of Dell's key divisions by February 2026, has been postponed to May, and the second division's upgrade, initially slated for May 2026, has been moved to August, Business Insider reported on Thursday.
In an internal memo, Dell Vice Chairman and COO Jeff Clarke informed executives and project leads that the launch would be delayed as a recent readiness review showed the new system wasn't prepared to scale across Dell's global operations, according to the report.
Dell did not immediately respond to Benzinga‘s request for comment.
The client solutions group, handling products like PCs and monitors, will adopt the new systems first, with the infrastructure solutions group, which delivers servers, storage, and other IT hardware, to follow afterwards, Business Insider reported.
Analysts Turn Bearish
The delay in Project Maverick comes at a challenging time for Dell. Just a few days before the delay was announced, the company’s stock experienced a significant drop following a bearish analyst update from Morgan Stanley. The rating was double downgraded from Overweight to Underweight, and the price target was reduced to $110 from $144.
On Thursday, BofA Securities slashed its price target on Dell to $160 from $170 amid concerns that soaring DRAM and NAND prices could squeeze margins, reported Investing.com. However, in August, BofA Securities analyst Wamsi Mohan stated that he expects AI server demand to remain strong. He forecasts earnings topping $19 per share by 2030, supported by a 15% CAGR from 2025 to 2030, driven largely by AI servers, better margins from an improved product mix, and rising adoption of AI PCs.
Dell posted second-quarter revenue of $29.78 billion and adjusted earnings of $2.32 per share, narrowly topping expectations. Overall revenue grew 19% year over year, with servers and networking jumping 69% to $12.9 billion. Its third-quarter results are due on November 25.
Benzinga's Edge Rankings place Dell in the 83rd percentile for growth and the 30th percentile for value, reflecting its mixed performance profile. Check the detailed report here.
Price Action: Over the past week, Dell stock slumped 14.61%, as per data from Benzinga Pro. On Wednesday, the stock closed 2.70% lower at $119.38.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
