Dell Technologies (DELL): Reassessing Valuation After Dataloop AI Deal and Commercial PC Price Increases

Investors are weighing a busy week for Dell Technologies (DELL), as the company moves to acquire AI data platform Dataloop while simultaneously raising prices on commercial PCs in response to tight memory supply.

See our latest analysis for Dell Technologies.

Those crosscurrents help explain why, even with today’s $126.42 share price and a solid year to date share price return, momentum has cooled a little compared to Dell’s powerful multi year total shareholder returns. These still point to a strong long term story.

If Dell’s AI push has your attention, this is also a good moment to explore high growth tech and AI stocks that could benefit from similar themes or offer a different risk reward profile.

With shares still trading at a sizeable discount to Wall Street’s targets despite strong AI momentum and solid earnings, investors now face a key question: is Dell quietly undervalued or already reflecting the next leg of its growth?

Most Popular Narrative Narrative: 22.6% Undervalued

With Dell Technologies closing at $126.42 against a narrative fair value of $163.30, the spread points to a sizable valuation gap that hinges on AI execution.

The analysts have a consensus price target of $146.429 for Dell Technologies based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $180.0, and the most bearish reporting a price target of just $104.0.

Read the complete narrative.

Want to see how moderate top line growth, rising margins and shrinking share count can still justify this punchy valuation? The narrative walks through the full earnings roadmap, step by step, and pins its fair value on a lower future earnings multiple than many tech high fliers enjoy today.

Result: Fair Value of $163.30 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slower legacy PC and storage demand, along with margin pressure from higher memory and AI server costs, could easily upset this undervalued narrative.

Find out about the key risks to this Dell Technologies narrative.

Build Your Own Dell Technologies Narrative

If you are not fully convinced by these assumptions or would rather dive into the numbers yourself, you can build a custom narrative in just a few minutes: Do it your way.

A great starting point for your Dell Technologies research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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