DELL Stock Rebounds Premarket: Analyst Sees 26% Upside Despite Fresh Debt And Major Insider Selling

• RBC Capital sees 26% upside in DELL stock, citing AI spending, storage growth and PC refresh demand.
• Strong demand for Dell’s debt eased concerns around its $5 billion bond sale.
• Aging PCs and servers could drive a fresh wave of replacement demand, Michael Dell said.

Shares of Dell Technologies, Inc. rose about 1% in premarket trading Friday, recovering from a pullback after a $5 billion bond sale and the disclosure that longtime investor Silver Lake Partners sold nearly $25 million of Dell stock.

The stock closed 5.4% lower on Thursday after Dell’s recent AI-fueled rally pushed it to record highs. Large debt offerings can pressure a stock by raising concerns about leverage, interest expenses and how a company intends to deploy the proceeds.

Dell’s bond sale, however, attracted roughly $23 billion of peak orders, suggesting strong investor demand for its investment-grade debt. Similarly, insider or major shareholder selling can weigh on a stock.

Dell’s stock currently trades near record-high levels, after having more than quadrupled so far this year. The company has emerged as a major supplier of AI-optimized servers and related infrastructure, benefiting from hyperscaler, enterprise and neocloud spending on data centers. 

Another Analyst Turns Bullish On DELL

RBC Capital on Thursday initiated coverage of DELL with an ‘Outperform’ rating and a $640 price target, implying 26% upside.

The research firm said enterprise spending on AI, compute modernization, storage expansion and PC refreshes should keep Dell’s results above its long-term targets. RBC also pointed to Dell’s broad portfolio, its large installed base, and supply-chain capabilities as advantages that could help it gain share.

Currently, 20 out of 29 analysts have a ‘Buy’ or higher rating on DELL, and the remaining nine rate it ‘Hold,’ per Koyfin data.

Dell Presents Bullish Outlook 

Recent management comments have reinforced that bullish outlook. At the Citi Global TMT Conference, Dell CEO Michael Dell said it would not use its balance sheet to provide long-term financing to neocloud companies, emphasizing a prudent approach to capital commitments. 

Management also said operating expenses have fallen to 8% of revenue from 20% six years ago, the lowest level in Dell’s 42-year history.

At Goldman Sachs’ Communacopia + Technology Conference, Dell highlighted pent-up replacement demand, noting that roughly 400 million PCs are more than four years old and 1.3 million older servers are awaiting replacement. 

He also warned that hardware shortages could be worse in 2027 than in 2026, despite higher memory costs.

Michael Dell Among Top In Wealth List

The incredible rally in Dell stock has also boosted Dell’s personal fortune. Forbes estimated his wealth at $273.2 billion as of Wednesday, making the 61-year-old corporate leader the world’s second-richest person, behind Tesla and SpaceX founder Elon Musk, and ahead of Google co-founder Larry Page and Amazon.com founder Jeff Bezos.

On Stocktwits, the retail sentiment for DELL dipped over the past week and was ‘bearish’ on Friday. 

“$DELL Technologies is extremely undervalued,” a trader wrote. “Not even to the LOWEST new price target and this company makes a lot of real money today! Very profitable, exceptional supply chain which has the advantage over all the other tech companies.”

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