Investing.com -- Bank of America raised its price targets for two computing names in a note on Monday, arguing that the rise of agentic AI will drive a new wave of demand for CPU-intensive hardware that both companies are well positioned to capture.

Dell (NYSE: DELL) and HP Enterprise (NYSE: HPE) are the stocks in question. Analyst Wamsi Mohan lifted his Dell price target to $246 from $205 and his HPE target to $38 from $32, reiterating Buy ratings on both stocks.

The multiple expansions reflect what BofA sees as a structural shift in AI workloads.

The firm's thesis centers on how agentic AI changes infrastructure requirements. Unlike traditional single-step inferencing, agentic AI "turns one discrete inferencing event into sequenced workflows, driving more inference events per task," BofA wrote, increasing demand for AI servers, infrastructure solution stacks and storage.

Critically, the more sequential and dependent nature of agentic workloads is said to elevate the role of CPUs across the stack, which BofA says is a dynamic that benefits both Dell and HPE's traditional server businesses alongside their AI server offerings.

Mohan sees Dell as a leading OEM in AI servers with roughly 12% share of total AI server revenues, which it estimates at $496 billion in 2026, with share gain momentum accelerating at Neo Clouds. HPE, meanwhile, is estimated to generate $6.5 billion in AI server revenues this year.

On infrastructure solution stacks, BofA estimates Dell and HPE hold 11% and 9% OEM share, respectively, making them "leading beneficiaries as demand increases." The firm acknowledged its models are likely conservative given the pickup in agentic AI demand.