What Happened?
Shares of computer hardware and IT solutions company Dell (NYSE:DELL) jumped 5.8% in the afternoon session after Bank of America Securities raised its price target on the stock.
The investment bank increased its price target on Dell to $165 from $155 while maintaining a "Buy" rating on the shares., The firm noted its expectation that IT hardware companies like Dell stood to benefit from the growth of enterprise and sovereign AI over the next decade. In line with this view, BofA raised its fiscal year 2026 revenue and earnings per share forecasts for the tech giant. The positive analyst action signaled confidence in Dell's future performance, particularly its positioning within the expanding artificial intelligence market.
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What Is The Market Telling Us
Dell’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 15.4% after markets rallied sharply on news that President Trump announced a 90-day tariff pause. Reciprocal tariffs were also dropped to 10% for most countries, sparking renewed optimism amid ongoing trade talks. The major stock indices rose as investors, growing impatient of seemingly irrational tariff actions, welcomed the pause as a sign of a more measured path forward. However, Trump was quick to note that China was not part of the pause. Instead, he prepared to raise tariffs on Chinese goods to 125% after China announced retaliatory tariffs on US imports. This tough stance on China stood in sharp contrast to the softer tone toward others. In a week marked by growing uncertainty, this news eased some of the pressure.
Dell is up 12.3% since the beginning of the year, but at $130.90 per share, it is still trading 9.2% below its 52-week high of $144.21 from November 2024. Investors who bought $1,000 worth of Dell’s shares 5 years ago would now be looking at an investment worth $2,130.
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