Dell Technologies (NYSE:DELL) Shares Up 3.6% - Still a Buy?

Key Points

• Dell shares rose 3.6% to $563.31 amid strong investor interest in its AI infrastructure business. Goldman Sachs projects the global server market could reach $1.5 trillion by 2030, while Dell reported $16.4 billion in AI-optimized server revenue and raised its full-year AI-server revenue target to $74 billion.
• Dell’s latest quarter showed robust momentum, with revenue up 57.7% year over year to $46.97 billion and EPS of $7.04 versus the $4.91 consensus estimate. Analysts maintain a generally bullish view, with a “Moderate Buy” consensus and several price targets above the current share price.
• Risks include elevated expectations and insider selling: Dell’s valuation assumes continued AI-driven growth, leaving the stock vulnerable if customer spending or backlog conversion slows. Insiders sold about 1.68 million shares worth $834.9 million in the last quarter, creating a potential supply overhang.

Shares of Dell Technologies Inc. (NYSE:DELL - Get Free Report) were up 3.6% during mid-day trading on Wednesday . The stock traded as high as $576.75 and last traded at $563.31. 12,929,283 shares traded hands during trading, an increase of 54% from the average daily volume of 8,418,368 shares. The stock had previously closed at $543.51.

Key Stories Impacting Dell Technologies

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

• Positive Sentiment: Goldman Sachs raised its outlook for the global server market, forecasting it could reach $1.5 trillion by 2030, driven largely by artificial intelligence infrastructure. The estimate strengthens the long-term market opportunity for Dell’s servers, networking, and storage products. Why Dell Technologies stock is gaining
• Positive Sentiment: Investors continue to highlight Dell’s substantial AI-server backlog and Nvidia-related infrastructure demand. Dell recently reported record AI-optimized server revenue of $16.4 billion and raised its full-year AI-server revenue target to $74 billion, supporting expectations for future growth. Dell’s AI server backlog
• Positive Sentiment: Dell’s recent quarterly results remain a key fundamental catalyst: revenue rose 57.7% year over year to approximately $47 billion, while earnings exceeded consensus estimates. Management has also emphasized accelerating infrastructure demand and potentially tight supply conditions into next year.
• Positive Sentiment: Axelera AI is collaborating with Dell on the Europa AI Processing Unit architecture, adding another inference-computing option for Dell data-center customers and supporting the company’s broader AI hardware ecosystem. Dell and Axelera AI collaboration
• Positive Sentiment: Dell is scheduled to join the S&P 100 before the market opens on September 21. The addition could generate incremental buying from index-tracking funds. Bullish analyst views, including RBC’s $640 price target, have added to investor confidence.
• Neutral Sentiment: Dell completed a $5 billion senior-notes offering. The proceeds should provide liquidity and help refinance debt, though the financing highlights the capital requirements associated with expanding AI infrastructure. Dell senior-notes offering
• Negative Sentiment: Silver Lake-affiliated entities and Dell directors have disclosed sizable stock sales after the sharp rally. The transactions create a potential supply overhang and may encourage profit-taking, even though some affiliated holders retain significant positions.
• Negative Sentiment: At the current valuation, investors are pricing in substantial AI-driven growth. Any slowdown in customer capital spending, easing supply constraints, or failure to convert the backlog into revenue could increase volatility.

Analysts Set New Price Targets

Several equities analysts have recently commented on DELL shares. JPMorgan Chase & Co. upped their target price on Dell Technologies from $565.00 to $635.00 and gave the company an "overweight" rating in a research report on Wednesday, September 2nd. US Capital Advisors set a $625.00 price target on Dell Technologies in a research note on Wednesday, September 2nd. Roth Capital initiated coverage on Dell Technologies in a report on Friday, May 29th. They issued a "buy" rating on the stock. Truist Financial increased their price objective on Dell Technologies from $360.00 to $505.00 and gave the stock a "hold" rating in a research report on Wednesday, September 2nd. Finally, William Blair initiated coverage on shares of Dell Technologies in a research report on Monday, June 1st. They issued a "neutral" rating for the company. One research analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Dell Technologies has an average rating of "Moderate Buy" and a consensus target price of $560.24.

Dell Technologies Price Performance

The stock has a 50-day moving average of $456.43 and a 200 day moving average of $330.78. The company has a market cap of $365.09 billion, a P/E ratio of 32.69, a PEG ratio of 0.55 and a beta of 1.34.

Dell Technologies (NYSE:DELL - Get Free Report) last announced its quarterly earnings data on Tuesday, September 1st. The technology company reported $7.04 earnings per share (EPS) for the quarter, topping 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 revenue for the quarter was up 57.7% on a year-over-year basis. During the same period in the prior year, the company posted $1.70 earnings per share. 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. Sell-side analysts predict that Dell Technologies Inc. will post 25.14 EPS for the current year.

Dell Technologies Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Tuesday, October 20th will be paid a dividend of $0.63 per share. The ex-dividend date is Tuesday, October 20th. This represents a $2.52 annualized dividend and a yield of 0.4%. Dell Technologies's dividend payout ratio is presently 14.63%.

Insider Buying and Selling at Dell Technologies

In other news, Director Spv-2 L.P. Sl sold 24,791 shares of Dell Technologies stock in a transaction on Monday, September 14th. The stock was sold at an average price of $534.05, for a total value of $13,239,633.55. Following the transaction, the director owned 46,873 shares in the company, valued at approximately $25,032,525.65. This trade represents a 34.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Silver Lake Partners Iv, L.P. sold 8,100 shares of the business's stock in a transaction on Monday, September 14th. The stock was sold at an average price of $538.90, for a total value of $4,365,090.00. Following the transaction, the director directly owned 1,395,650 shares of the company's stock, valued at $752,115,785. This trade represents a 0.58% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 1,681,793 shares of company stock valued at $834,887,936. 41.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dell Technologies

Several hedge funds and other institutional investors have recently made changes to their positions in DELL. Revere Asset Management Inc bought a new position in shares of Dell Technologies in the 2nd quarter worth about $5,524,000. Sequoia Financial Advisors LLC boosted its position in shares of Dell Technologies by 4.5% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 50,146 shares of the technology company's stock valued at $21,636,000 after purchasing an additional 2,176 shares in the last quarter. MCF Advisors LLC boosted its position in shares of Dell Technologies by 4.4% during the 2nd quarter. MCF Advisors LLC now owns 2,377 shares of the technology company's stock valued at $1,026,000 after purchasing an additional 100 shares in the last quarter. Archford Capital Strategies LLC acquired a new stake in Dell Technologies during the second quarter worth approximately $1,214,000. Finally, Gemmer Asset Management LLC bought a new stake in Dell Technologies in the second quarter worth approximately $274,000. 76.37% of the stock is owned by institutional investors.

About Dell Technologies

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, displays, peripherals and related accessories marketed primarily under the Dell brand.

The company also provides enterprise infrastructure solutions, including servers, storage systems, networking equipment, data protection, cybersecurity and cloud-related technologies. Dell Technologies supports organizations with consulting, deployment, managed and support services designed to help them operate data centers, hybrid cloud environments and modern workplace technology.

Michael Dell founded the company in 1984 and serves as its chairman and chief executive officer.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.