Dell Technologies Inc.

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Dell Technologies Inc. stock analysis DELL overview
Very Bullish +80

Dell is back on Josh Brown's Best Stocks list. Why more gains are ahead

📈 Dell Technologies (DELL) is being added back to Josh Brown's Best Stocks list after a three-month absence following a pullback below its 200-day moving average.

💻 The stock previously faced concerns about AI capex boom uncertainty but has since broken out and is trading near a new 52-week high among only 15 stocks making such highs in the S&P 500.

🔧 Dell's primary business driver now includes customizable AI and data center infrastructure through Integrated Rack Scalable Systems (IRSS), offering end-to-end data center solutions.

📊 Management guided FY27 AI server revenue to roughly $50 billion, a 103% increase that will drive the company's total FY27 revenue guide of $138–$142 billion.

💰 Dell expects 23% EPS growth for the current year and 15% growth for next year while trading at a forward P/E ratio of approximately 12x earnings (0.7 PEG).

📉 Technical analysis indicates a golden cross with the 50-day moving average breaking above the 200-day, confirming the recent rally as a valid trend.

⚠️ Short-term trading risk exists due to the RSI pushing into the high 70s, suggesting potential shakeouts or sideways digestion before further upside.

📉 The breakout zone around $150 acts as key support for traders, while holding above the rising 200-day average near $130 remains the longer-term risk level for investors.

⚙️ Dell transformed from a traditional PC manufacturer to an essential infrastructure provider for the AI goldmine, with revenue growing from near zero a few years ago to $24.7 billion in FY2026.

🔒 Risk management advises giving the stock a couple of days to cool off if RSI indicators suggest it is overextended before chasing the rally.

Bullish Signals
  • Dell has broken out again and is now making 52-week highs, placing it among only 15 stocks achieving such new highs in the S&P 500.
  • The company reported $64.1B in AI-related orders during FY26 and entered the year with a record backlog of $43B.
  • Dell's five-quarter forward pipeline continues to grow sequentially, indicating strong demand for its data center solutions.
  • Management guided FY27 AI server revenue at roughly $50B, representing a massive 103% increase over previous levels.
  • This AI growth is set to drive Dell's overall FY27 revenue guide to $138–$142B.
  • The company expects 23% EPS growth for the current year and 15% growth for next year.
  • Shares are trading at a forward 12x earnings multiple with a 0.7 PEG, which is considered favorable.
  • Technical analysis shows a 'golden cross' forming with the 50-day moving average breaking above the 200-day moving average.
  • The stock has extended well above prior resistance in the $150–$155 zone, flipping that level from a ceiling to a floor.
  • Dell offers an end-to-end solution for data centers with its Integrated Rack Scalable Systems (IRSS) and forward-deployed engineers.
Risk Factors
  • The stock previously rolled over two months after its initial inclusion on Sept. 29, falling below its 200-day moving average before Thanksgiving and spending three months off the Best Stocks list.
  • Many traders would likely forget about the ticker or take it off their screen given the failure of the first breakout trend, highlighting the emotional difficulty investors face in revisiting such names after a loss.
  • The stock's RSI is pushing into the high 70s, indicating it is getting stretched short-term and carries a risk of a shakeout or sideways digestion before continuing higher.
  • Technically, there is a defined risk zone at $150; if the price breaks back under this breakout level, it could invalidate the current bullish thesis, while a tighter stop might be keyed off a break under $160.
  • The longer-term trend remains intact only as long as the stock holds above the rising 200-day moving average around $130, which serves as the key risk support level.
Full Analysis
Dell Technologies (DELL) has rejoined Josh Brown's Best Stocks list following a technical breakout and renewed momentum amid the artificial intelligence boom. While the stock was previously removed from the list in late January after falling below its 200-day moving average during concerns over AI capital spending, it has since consolidated and broken out again with new highs. Brown notes that Dell now ranks among just 15 S&P 500 stocks hitting 52-week highs, highlighting its resilience despite broader market volatility. The commentary emphasizes the emotional discipline required to maintain positions through temporary drawdowns, citing Dell's re-entry as an example of a "second time's the charm" scenario where revisiting a failed trade setup after a fresh breakout can be more profitable than abandoning the idea entirely. From a business perspective, analyst Sean Russo from Ritholtz Wealth Management attributes Dell's resurgence to its evolution into an essential infrastructure provider for AI data centers. The company offers Integrated Rack Scalable Systems (IRSS) that support any platform or cooling method, backed by a service model involving "forward deployed engineers" who collaborate with customers on design and optimization before hardware delivery. Financial metrics cited include revenue growth from $0 to $24.7 billion as of FY2026, with Dell closing $64.1 billion in AI-related orders during that period. The company entered the current year with a record $43 billion backlog and projects FY27 AI server revenue of approximately $50 billion, representing a 103% increase. This growth drives an overall FY27 revenue guide of $138–$142 billion and expected EPS growth of 23% this year and 15% next year. Technically, Josh Brown identifies the breakout zone around $150 as a critical level that acts as a floor once it breaks through resistance previously seen in the $150–$155 range. The stock recently exhibited a "golden cross" formation with the 50-day moving average crossing above the 200-day, confirming the recent rally despite short-term stretched momentum indicated by an RSI in the high 70s. Brown advises traders that while chasing strength at current levels carries risk of a shakeout due to near-term consolidation needs, investors can maintain a bullish trend outlook as long as the stock holds above the rising 200-day moving average around $130. The valuation is noted as attractive with a forward price-to-earnings multiple of 12x and an earnings growth peg of 0.7. The article includes standard disclosures indicating that all opinions belong solely to CNBC Pro contributors, Sean Russo and Josh Brown, and do not reflect the views of CNBC or its affiliates. The content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice. Readers are reminded that such general content may not be suitable for their unique circumstances and are encouraged to consult their own financial advisors before making decisions. Dell remains one of only two megacap tech names currently featured on Josh Brown's Best Stocks list, underscoring its current prominence in the analysts' view.