DELL stock has declined 10.1% YTD, facing challenges in the PC market, but showing promise in AI.

From Nasdaq: 2025-02-03 11:29:00

Dell Technologies (DELL) shares have declined 10.1% YTD, underperforming the industry and sector. Weakness in the PC market due to cautious spending by enterprises is a concern. IDC data shows DELL’s PC shipment declined 0.2% in Q4 2024, with market share decreasing to 14.4%. Lenovo leads with 24.5% market share.

DELL shares are trading below moving averages, signaling a bearish trend. Earnings estimate revisions show a downward trend for fiscal 2026, with a consensus estimate of $9.36 per share. DELL has consistently beaten earnings estimates, with an average surprise of 10.44% in the last four quarters.

Strong AI demand could push DELL stock higher, driven by $2.9 billion in AI server shipments in Q3 2025. The AI server pipeline is expanding, with a rich partner base supporting growth targets. DELL expects revenues to grow 3-4% and earnings over 8%, with plans to return 80% of adjusted free cash flow to shareholders.

DELL’s leading-edge AI servers and expanding partner base contribute to top-line growth. The company offers 10 AI-optimized servers and benefits from increasing demand for traditional servers. With a Value Score of B and trading at a discount compared to the sector, DELL shares are considered cheap.

Investors should consider DELL’s robust portfolio and expanding partner base for long-term growth. The company targets a $2.1 trillion market by 2027, with strong AI server demand driving performance. While near-term weakness in the PC market and competition in AI datacenters are concerns, DELL’s growth prospects are promising for long-term investors.



Read more at Nasdaq: DELL Declines 10.1% Year to Date: To Buy or Not to Buy the Stock?