Dell Stock Enters Bear Market as Analysts Remain Highly Bullish Despite AI Jitters
Dell Technologies (NASDAQ:DELL) has entered a bear market after falling 24.15% from its September peak. The stock ended the week at $451, its lowest level since September 2. Even so, it remains one of the best performers in the S&P 500, up 270% this year.
Dell Stock Has Dropped Amid AI Bubble Jitters
Top companies that have benefited from the ongoing AI boom have suffered a big reversal as investors remain concerned about a potential bursting of the bubble. Indeed, the AI Stock Bubble Index has jumped to the elevated risk level of 74 and is about to cross the extreme level.
Some top analysts have warned that the bubble may burst soon because of the rising interest rates and bond yields. These warnings came at a time when companies like Anthropic and OpenAI have leaked revenue numbers that came short of expectations.
The bursting of the bubble would have a major impact on companies that have benefited from the boom. This includes firms like Dell, HP Enterprise, and Lenovo that sell servers and storage equipment to hyperscalers and neoclouds.
On the positive side, all signs are that Dell’s business is continuing to do well despite the ongoing fears of the AI industry. Its last earnings report showed that its revenue jumped by 58% to $47 billion in the second quarter. This revenue growth was in line with what analysts were expecting and what it provided in its guidance.
Dell’s outperformance is likely to continue. Benzinga data shows analysts expect revenue to jump 70% to $193 billion this year, followed by $229 billion next year. Margins are also expected to expand, which should give the company more room to buy back shares.
Dell has already returned $4.3 billion to shareholders through dividends and buybacks, and its outstanding share count has fallen to 319 million from 357 million in 2025.
Analysts are Bullish on Dell Shares
Most analysts are still bullish on Dell as its growth continues. Goldman Sachs (NYSE:GS) recently reiterated its buy rating on the company, while Mizuho’s Vijay Rakesh hiked his target from $600 to $650. TD Cowen’s Krish Sankar hiked from $500 to $550, while Morgan Stanley’s Erik Woodring raised to $511.
Technicals, however, suggest that the stock has some more downside before bouncing back. It formed a double-top pattern at $594 and a neckline at $519.2. This pattern often leads to a bearish reversal.
Therefore, the stock will likely continue falling in the coming weeks as big-tech earnings start streaming in. The next key target will be the ascending trendline that connects its lowest swings in February, March, and April. This target also coincides with the Ultimate Support of the Murrey Math Lines.
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