Is Dell Technologies Stock Outperforming the Dow?

With a market cap of $357.9 billion, Dell Technologies Inc. (DELL) is a global technology company helping organizations and individuals build their digital future and transform how they work, live, and play. The company offers a broad and innovative portfolio of technology products and services designed to support customers in the AI era. 

Companies valued at $200 billion or more are generally classified as “mega-cap” stocks, and Dell Technologies fits this criterion perfectly. Dell Technologies enables businesses and individuals to adopt advanced technologies and drive digital transformation across their operations and everyday lives.

Shares of the Round Rock, Texas-based company have dipped 8.3% from its 52-week high of $595.51. Over the past three months, the stock has increased 36.8%, outpacing the Dow Jones Industrial Average's ($DOWI) marginal decline during the same period.

Shares of the computer and technology services provider have jumped 334% on a YTD basis, surpassing DOWI’s 7.3% return. Moreover, the stock has climbed 317.8% over the past 52 weeks, compared to DOWI's 11.5% gain over the same time frame.

DELL stock has been trading above its 50-day moving average since March. Also, it has moved above its 200-day moving average since April.

Dell shares soared 15.8% following its Q2 2027 results on Sept. 1, as revenue jumped 58% year-over-year to a record $47 billion and adjusted EPS of $7.04, beating analysts’ estimates. The company also raised its annual revenue forecast to $192 billion and adjusted EPS guidance to $25.50, driven by surging AI-server demand, with fiscal 2027 AI-optimized server revenue now expected at $74 billion versus $60 billion previously. 

Strong demand across AI infrastructure further supported the outlook, with Dell reporting more than $130 billion in AI-server orders over the past 12 months, with its infrastructure segment revenue surged 89% and PC sales increased 20%.

In comparison, rival Arista Networks, Inc. (ANET) has lagged behind DELL stock. ANET stock has increased 56.5% on a YTD basis and 43.9% over the past 52 weeks.

Despite the stock’s strong performance, analysts are cautiously optimistic about its prospects. DELL stock has a consensus rating of “Moderate Buy” from the 28 analysts covering it, and the mean price target of $591.50 is a premium of 8.9% to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.