Dell Hits Record High Despite AI Stock Slump

Dell Technologies shares surged to a fresh record high on Friday, bucking a broader slump in AI-linked stocks that has wiped billions off chipmakers’ valuations.

On Friday the stock popped 12% following new bullish coverage by RBC Capital Markets for the first time. The rally followed a blowout second-quarter earnings report showing revenue up 58% year-on-year to $47 billion and a record $95 billion AI server backlog.

Shares touched an all-time high of $567.75 last week before slipping to around $534 on Monday as investors rotated out of AI-exposed names broadly.

Latest Market Moves

·         Nasdaq Composite slid 0.56% to 26,186.41 on Monday as semiconductor stocks led the way down, with the sector-tracking SMH ETF falling more than 4%.

·         The US 10-year Treasury yield climbed to 5.0%, its highest level since October 2023, as oil-driven inflation fears built ahead of Wednesday’s Fed decision.

·         Gold slipped further to around $4,295 an ounce on Tuesday, pressured by rising yields even as its longer-term uptrend stays intact.

·         Brent crude jumped to $107 a barrel after a drone strike shut down a key Saudi Arabian pipeline, adding a fresh supply-side jolt to energy markets.

·         South Korea’s Kospi and Australia’s ASX 200 fell on AI capex concerns, while Japan’s Nikkei 225 bucked the trend on SoftBank strength.

Record Highs Follow a Blowout Quarter

Dell’s rally is built on hard numbers, not just AI hype.

The company’s fiscal second-quarter results, reported on September 1, showed adjusted earnings per share up 203% to $7.04 as AI-optimised server revenue doubled to $16.4 billion. Orders for AI servers hit a record $60.9 billion in the quarter alone, pushing the backlog for that business to $95 billion.

That backlog gives investors multi-year visibility on future revenue that few rival hardware makers can match.

Bucking the Broader AI Stock Slump

That order book has let Dell shrug off pressure that is crushing its peers.

Broadcom shares fell sharply in early September after its own AI revenue forecast missed expectations, and warnings from AI industry chief executives about the pace of development triggered fresh selling in chipmakers this week. The VanEck Semiconductor ETF dropped more than 4% on Monday alone, with names including Marvell Technology and Lam Research down sharply.

Dell’s own pullback from its record high has been comparatively mild by contrast, with the stock still up more than 3X so far in 2026.

A Backlog Big Enough to Draw Scrutiny

It’s important to be mindful of the risk that DELL is taking on to be a part of the AI build out.

Dell has taken on fresh debt and rising insider selling has been flagged as a risk if sentiment turns.

The rally has also been a personal windfall for founder and chief executive Michael Dell, whose stake in the company has helped lift his wealth by more than $100 billion so far this year, second only to Elon Musk among 2026’s biggest gainers.

Dell Technologies: Breakout From a Multi-Week Range

The weekly chart shows exactly how this breakout took shape.

Dell spent close to two months consolidating in a tight range beneath its prior highs before September’s earnings blew the lid off, sending the stock through resistance to a record $567.75 on high volume. That former resistance should now act as support on deeper pullbacks, and Monday’s slide to around $534 has so far held comfortably above it.

The 14-week RSI sits close to 70, an overbought reading last seen during the stock’s initial breakout earlier this year.

Source: Spreadex | DELL, Weekly Chart