DELL Rebounds Sharply, Shaking Off AI Concerns...Races to 52-Week High

▲ Dell (DELL), Artificial Intelligence (AI)/AI Generated Image

Dell Technologies (DELL), which had plummeted due to concerns about a slowdown in AI investment, rebounded within a day and then expanded its gains, climbing to a 52-week high.

According to Benzinga on September 16 (local time), Dell Technologies' stock price continued its upward trend after rising about 3% the previous day. Earlier on Monday, it had plunged by approximately 6%. On the same day, Nasdaq futures rose 0.77% and S&P 500 futures rose 0.28%, improving investor sentiment for tech stocks.

The trigger for Monday's sharp decline was the AI safety debate. Officials from major AI companies, including Anthropic and OpenAI, argued that the pace of advanced AI development should be slowed down due to safety concerns. In the market, worries spread that a slowdown in AI investment could impact demand for semiconductors and data center hardware.

U.S. President Donald Trump opposed calls to slow down development, emphasizing that AI and data centers are crucial drivers of economic growth. Trump also stressed the importance of AI investment in competition with China. For Dell Technologies, which has expanded its AI server and data center equipment business, the continuation of AI infrastructure investment is a key variable.

Wall Street also maintains high price targets for Dell Technologies. RBC Capital issued an Outperform rating on September 10 with a target price of $640. Evercore ISI maintained its Outperform rating on September 9 and raised its target price to $650. Citigroup also maintained its Buy rating on September 2 and increased its target price to $600. The average target price compiled by Benzinga is $559.

Technical trends also remain strong. Dell Technologies is trading 13.4% above its 20-day Simple Moving Average (SMA) of $484.73 and 106.7% above its 200-day Simple Moving Average of $265.88. The 20-day SMA is above the 50-day SMA, and the golden cross formed in March is also maintained. Benzinga presented $568.67 as a major resistance level and $484.73 as a key support level.

[Article Key Summary]

-Dell Technologies rebounded after a sharp decline of about 6% due to concerns about a slowdown in AI investment, rising to a 52-week high.

-The AI safety debate by Anthropic and OpenAI raised concerns about a slowdown in data center and semiconductor investment, but Trump emphasized the need for increased AI investment.

-RBC Capital, Evercore ISI, and Citigroup maintained positive investment opinions on Dell Technologies, with the highest target price at $650.

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