Jumat, 21 Maret 2025

Is This Famous Tech Stock on Shaky Ground?

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Is Dell Technologies on Shaky Ground?

Anthony Summers, Director of Trading, The Oxford Club

Anthony Summers

Dell Technologies (NYSE: DELL), the household name in computers and IT infrastructure, has been on a wild market ride.

After hitting lows just under $35 in 2022, the stock surged dramatically to reach more than $175 in mid-2024 before settling at its current price around $100.

Chart: Dell Technologies (NYSE: DELL)
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But is this price justified by Dell's actual business performance?

Dell operates through two main segments: Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). The ISG division sells servers, networking, and storage solutions to enterprises and cloud providers. The CSG segment sells laptops, desktops, and related products to consumers and businesses.

Recently, Dell has hitched its wagon to the AI revolution. In the company's earnings call for the fourth quarter of fiscal 2025, executives highlighted Dell's AI server backlog of roughly $9 billion and projected AI server shipments of at least $15 billion for fiscal 2026. The market has responded enthusiastically to this AI growth narrative.

For fiscal 2025, the company reported revenue of $95.6 billion, up 8% from the previous year. Operating income was $6.2 billion (up 15%), with diluted earnings per share of $6.38 (up 39%).

These numbers look solid on the surface... but beneath the AI excitement, Dell's financials tell a more complex story.

Let's run the stock through The Value Meter to cut through the hype and get a sense for its true valuation.

Get DELL's
Value Meter Score
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