DELL
Dell’s big AI glow-up
Dell has been on a ridiculous run: the stock hit a record $514 this week before easing back to around $490. That still leaves it up a jaw-dropping 292% this year, which is the kind of move that makes your brokerage app look like it’s on a dare.
Why the bulls aren’t blinking
The article argues Dell’s setup still looks pretty friendly because its competitors are basically handing it a cheat sheet. Lenovo just posted a 43% revenue jump to $26.9 billion, while Super Micro Computer reported revenue of $11.1 billion and net income of $1.17 billion. In other words, the server-and-data-center party is still going, and Dell gets to dance right along with it.
Then there’s the hyperscaler backdrop. Alphabet, Meta, and Amazon all posted strong numbers and kept spending plans intact, which matters because Dell sells into the same AI infrastructure gold rush. If cloud giants keep opening the capex faucet, Dell’s servers, storage, and hardware stack get a nice tailwind.
But valuation is starting to look spicy
Of course, no stock can go vertical forever without people squinting at the math. Dell now trades at about 26 times forward earnings, well above its five-year average of 12, and above peers like Micron, Nvidia, and SanDisk in this article’s framing.
Still, analysts are leaning constructive. Wells Fargo lifted its target to $545, Citigroup went to $515, and Mizuho moved to $500. Dell also says it’ll report next on September 3rd, so this rally may get a fresh reality check soon.
Big picture: Dell’s story is basically “PCs are meh, AI servers are carrying the team.” As long as data-center spending stays hot, investors are likely to keep giving this one the benefit of the doubt — even if the valuation is starting to look like it skipped leg day.