Dell Technologies Inc. (NYSE:DELL) is one of the 14 AI Stocks Making Moves on Wall Street: Nvidia, Micron, and More.
Even though near-term tailwinds exist for Dell Technologies, one analyst firm believes that its current valuation and long-term competitive risks leave little room for upside
On June 25, GF Securities analyst Jeff Pu downgraded the stock from Buy to Hold without a price target. Dell’s share price has rallied over 200% since F4Q26 results, driven by AI backlogs and general server strength. While recent GB300/HGX orders influx provide near-term tailwinds for this year, we see limited upside amid already elevated expectations.
The firm believes that investor expectations regarding the potential increase in Dell’s AI revenue to $70 billion and related improvement in revenue and EPS are already reflected. Meanwhile, there are longer term risks to Dell’s current position. For instance, SpaceX’s next GW deployment is expected in 2027, with SMCI expected to gain share.