Dell Technologies Cl C

Dell Technologies Cl C

DELL

$6.93



5.85%



143%

IBD Stock Analysis

• Stock flirting with buy point.
• Dell lifted strong AI-powered demand for data center servers.

Composite Rating

Industry Group Ranking

Emerging Pattern

Consolidation

* Not real-time data. All data shown was captured at
2:15PM EDT on
04/02/2024.

Dell Technologies (DELL) is the IBD Stock Of The Day as the computer hardware giant flirts with a buy point from a short consolidation. However, Dell stock pulled back with the broader market indexes on Tuesday.

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Aggressive investors could see an early-entry buy point for Dell stock at its March 26 high of 116.85, according to IBD analysis. On Monday, Dell shares jumped 4.9% to close at 119.64.

However, in afternoon trades on the stock market today, Dell stock slid 1% to close at 118.44. The Dow, S&P 500 and Nasdaq indexes traded lower on Tuesday.

Dell stock spiked to a record high 131.06 on March 1 after the company reported better-than-expected fiscal fourth-quarter results. Robust sales of data center servers for generative artificial intelligence applications helped to offset soft PC sales in the period.

Dell’s earnings jumped 22% to an adjusted $2.20 a share while sales dipped 11% to $22.32 billion in the quarter ended Feb. 2. Analysts polled by FactSet had expected adjusted earnings of $1.73 a share on sales of $22.17 billion.

Analyst Bullish On AI Server Sales

In its annual report filed last week with the Securities and Exchange Commission, Dell said it reduced its workforce by 10% over the past year in a cost-cutting initiative. It reported having about 120,000 employees as of Feb. 2, vs. about 133,000 a year earlier.

Also last week, BofA Securities analyst Wamsi Mohan reiterated his buy rating on Dell stock with a price target of 130.

In a note to clients March 27, Mohan said he is bullish on AI server momentum, especially at Dell, after his firm’s checks with companies in the tech supply chain in Asia.

“Order momentum appears to be strong for Dell on servers, where we can see a path for continued revenue/order strength for AI servers,” Mohan said.

Meanwhile, supply chain checks revealed stability in production of traditional servers but continued weakness in personal computers.

Dell Stock On Tech Leaders List

Dell stock ranks third in IBD’s computer hardware industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 82 out of 99.

IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Further, Dell stock is on the IBD Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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