Dell Stock Continues 57% Rally Since Trump Endorsement

Key Takeaways

• Dell Technologies (DELL) boosted its annual revenue and profit expectations for fiscal 2027, while posting better-than-expected Q1 earnings
• In the last 30 days, Dell stock has surged over 50%
• The stock has rallied to near record levels since US President Donald Trump told reporters at a press briefing to “Buy a Dell Computer”

Dell Technologies (DELL) stock ended Thursday’s trading session higher after the company boosted its annual revenue and profit expectations. Shares rose around 30% in extended trading, continuing a 53% rally in the last 30 days. The stock has rallied to near record levels since US President Donald Trump told reporters at a press briefing to “buy a Dell Computer.” The latest earnings report caps off what’s been a big month for the computer developer.

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Dell Earnings Blow Away Expectations, and the Company Forecasts Bigger Year Ahead

Dell recently reported better-than-expected results, with Q1 revenue of $43.84 billion and adjusted EPS of $4.86. The computer developer also cited AI-related demand and server sales as major growth drivers. The results show how Dell has turned into one of ‌the biggest winners of the ⁠generative AI boom, and why the Trump Administration is praising it. The company is managing the memory chip crisis well by implementing price increases and adjusting its supply chain, all while maintaining solid sales.

Dell’s chief operating officer Jeff Clarke said on ​a post-earnings call:

“We’re repricing, ⁠it feels like, every day. And I’m sure our customers feel that pain. Unfortunately, I don’t see that changing given the world that we’re living in today where you have an ​inflationary environment” ​

Further, Dell Technologies also forecasts a big quarter ahead and even bigger year. Dell said it now ‌expects AI server revenue of roughly $60 billion for fiscal 2027, up from its prior expectations of $50 billion. It raised its annual revenue forecast to between $165 billion and $169 billion, a sharp increase from its previous forecast of $138 billion to $142 billion. The company lifted its annual adjusted earnings per share forecast to $17.90 from the prior view of $12.90. Dell also provided second-quarter revenue ​and adjusted profit per share forecasts that were above market estimates.

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The Trump Impact: Dell Stock Surging at Record Levels

Earlier this month, Donald Trump praised the PC maker’s chief executive, commending Michael Dell and his wife for jump-starting the ‘Trump Accounts’ program. He told the crowd to “go out and buy a Dell computer.” The stock got a significant boost that week, and has been riding gains since. Indeed, Dell stock is up 57% since President Trump said to buy the stock on May 8th. Its up even further since his public declaration for people to buy Dell Computers.

Furthermore, the Pentagon awarded Dell Technologies $9.7 billion to help them cut costs in a new deal called the Core ‌Enterprise Technology Agreement. The new agreement also encompasses other enterprise software licenses scattered across ​the military services, the intelligence community, and the U.S. Coast Guard into a single contract vehicle. Dell Federal Systems, a unit of the company dedicated to serving government, won the contract after a competitive process, Defense Department Chief Information Officer Kirsten Davies and acting Navy Chief Information Officer Barry Tanner told reporters at a Wednesday briefing at the Pentagon.

With the computer developer’s recent success, Dell stock has received a lot of love on Wall Street in May. Mizuho has lifted their target price on Dell Technologies from $350 to $435, giving the stock a buy rating in a research note Thursday. Further, the consensus rating on Dell stock is a moderate buy, according to analysts ratings tracked by TipRanks.

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