Dell Stock Flat Since May as AI Revenue Surges

Dell Technologies’ shares have traded in a narrow range since peaking at $469.60 in May. The company reported first-quarter revenue of $43.8 billion, up 88% year over year, driven by sales of AI-optimized servers and storage.

Infrastructure Solutions Group revenue rose 181% year over year, with AI-optimized server sales up 757% to $16.1 billion. Client Solutions Group revenue, which covers PCs and workstations, increased 17% to $14.6 billion. Diluted earnings per share rose 282% to $5.24, and free cash flow was $4.1 billion for the quarter.

Company management projected second-quarter revenue of about $45 billion and adjusted EPS near $4.48. Full-year revenue guidance was raised toward $165 billion, about 47% higher than prior projections.

On price charts, shares have traded roughly between $360 and $469 since May. Traders have identified a possible double-top and an island reversal after an upward gap. The MACD momentum indicator produced a bearish crossover. Market participants cite $360 as a key near-term support level and $300 as a deeper support.

Valuation metrics have become a focus. Dell’s forward price-to-earnings ratio is near 24, more than double its five-year average.

Other firms in enterprise hardware and semiconductor segments have recorded gains this year. Hewlett Packard Enterprise has risen roughly 135% from its low this year, while Lenovo has climbed about 143% since January. Memory and semiconductor companies also reported stronger results, reflecting higher demand for data-center capacity.

The server and storage market has a history of cycles in production, supply and pricing. Periods of rapid equipment price gains have led manufacturers to increase production, which can raise supply and affect prices over time.

Dell, founded 42 years ago, operates through Infrastructure Solutions Group and Client Solutions Group. The company’s next earnings report is expected to show whether current data-center spending continues into the second quarter.