Dell Technologies (NYSE:DELL) Shares Gap Up - Still a Buy?

Key Points

• Dell shares surged at the open, rising from a $461.56 close to $497.00 before trading near $484.86, as strong AI-server demand and a broader AI hardware rally boosted sentiment.
• Dell’s expanded NVIDIA AI partnership, growing customer base of more than 6,500, strong quarterly results, and a reported 20% dividend increase support the long-term growth outlook.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $569.96, but investors face valuation, component-cost, execution, and AI-adoption risks.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $461.56, but opened at $497.00. Dell Technologies shares last traded at $484.8560, with a volume of 1,955,711 shares.

Dell Technologies News Roundup

Here are the key news stories impacting Dell Technologies this week:

• Positive Sentiment: Strong AI-server demand: Super Micro raised its revenue outlook and indicated better-than-expected profitability for the latest quarter. The update lifted the broader AI hardware group, suggesting continued demand for Dell’s AI-optimized servers and data-center infrastructure. Super Micro’s stock soars after surprise update
• Positive Sentiment: Expanded NVIDIA partnership: Dell introduced new AI Factory with NVIDIA capabilities spanning deskside agentic-AI solutions, workstations and data-center infrastructure. Dell said its customer base for the platform grew to more than 6,500, reinforcing its positioning as an enterprise AI infrastructure provider. Dell Technologies advances enterprise agentic AI with NVIDIA
• Positive Sentiment: Investor-return support: Dell reportedly raised its dividend by 20% for the fourth consecutive year, adding to the stock’s appeal as the company benefits from AI-related growth. Dell Technologies raises its dividend
• Neutral Sentiment: Long-term opportunity: Analysts and market commentary continue to highlight Dell’s expanding AI-server backlog, partnerships and on-premises AI products. The bullish case assumes the multiyear AI buildout continues, although the stock’s recent volatility reflects uncertainty about the pace of enterprise adoption. How AI server demand will impact Dell stock investors
• Negative Sentiment: Valuation and execution risks: Barclays cautioned that Dell’s share price may have advanced faster than enterprise AI adoption, while management has previously cited memory-chip and other component shortages. Higher component costs or slower AI spending could pressure margins and growth expectations. What could derail Dell stock?

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Morgan Stanley upped their target price on Dell Technologies from $499.00 to $511.00 and gave the stock an "equal weight" rating in a report on Monday, September 21st. Fox Advisors raised Dell Technologies from an "equal weight" rating to an "overweight" rating and set a $625.00 price target on the stock in a research note on Wednesday, September 2nd. Piper Sandler reissued an "overweight" rating and set a $558.00 price target (up from $497.00) on shares of Dell Technologies in a research report on Wednesday, September 2nd. Melius Research lifted their target price on shares of Dell Technologies from $650.00 to $735.00 and gave the company a "buy" rating in a report on Wednesday, September 2nd. Finally, KeyCorp restated a "sector weight" rating on shares of Dell Technologies in a research note on Wednesday, September 2nd. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $569.96.

Dell Technologies Stock Performance

The firm has a market cap of $311.48 billion, a PE ratio of 28.42, a price-to-earnings-growth ratio of 0.47 and a beta of 1.37. The stock has a 50-day simple moving average of $514.91 and a two-hundred day simple moving average of $399.01.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.91 by $2.13. The firm had revenue of $46.97 billion for the quarter, compared to the consensus estimate of $44.89 billion. Dell Technologies had a net margin of 7.53% and a negative return on equity of 578.85%. The business's quarterly revenue was up 57.7% compared to the same quarter last year. During the same quarter last year, the firm posted $1.70 EPS. Dell Technologies has set its FY 2027 guidance at 25.500-25.500 EPS and its Q3 2027 guidance at 6.500-6.500 EPS. As a group, sell-side analysts anticipate that Dell Technologies Inc. will post 25.13 EPS for the current fiscal year.

Dell Technologies Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be given a $0.63 dividend. This represents a $2.52 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, October 20th. Dell Technologies's dividend payout ratio (DPR) is presently 14.63%.

Insider Activity

In related news, Director Silver Lake Partners V. De (Aiv sold 25,494 shares of the firm's stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $582.30, for a total value of $14,845,156.20. Following the transaction, the director owned 22,686 shares of the company's stock, valued at approximately $13,210,057.80. This trade represents a 52.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Egon Durban sold 1,850 shares of the business's stock in a transaction that occurred on Wednesday, September 23rd. The shares were sold at an average price of $548.40, for a total transaction of $1,014,540.00. Following the sale, the director owned 1,405,236 shares of the company's stock, valued at $770,631,422.40. This trade represents a 0.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,817,628 shares of company stock worth $990,253,476. Company insiders own 41.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. QP Wealth Management LLC purchased a new position in Dell Technologies during the third quarter worth approximately $1,500,000. Robbins Farley grew its holdings in Dell Technologies by 0.6% in the third quarter. Robbins Farley now owns 14,532 shares of the technology company's stock valued at $7,817,000 after purchasing an additional 87 shares during the period. Benchmark Financial Wealth Advisors LLC grew its holdings in Dell Technologies by 7.2% in the third quarter. Benchmark Financial Wealth Advisors LLC now owns 778 shares of the technology company's stock valued at $419,000 after purchasing an additional 52 shares during the period. Physician Wealth Advisors Inc. increased its position in shares of Dell Technologies by 11.2% in the third quarter. Physician Wealth Advisors Inc. now owns 309 shares of the technology company's stock valued at $166,000 after buying an additional 31 shares in the last quarter. Finally, Cohen Investment Advisors LLC purchased a new stake in shares of Dell Technologies in the third quarter valued at approximately $2,156,000. Hedge funds and other institutional investors own 76.37% of the company's stock.

Dell Technologies Company Profile

Dell Technologies Inc is a global technology company that develops, sells and supports information technology hardware, software and services. Its portfolio includes personal computers, workstations, monitors, peripherals and other end-user devices, as well as servers, storage systems, networking equipment and related infrastructure solutions for businesses, governments and other organizations.

The company also provides consulting, deployment, support, managed and cybersecurity services designed to help customers build and operate their technology environments.

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