Dell To Officially Join Tesla, Oracle, Caterpillar In Texas As Stock Eyes Best Year Since Returning To Public Markets

• Texas has emerged as a major hub for technology, energy and manufacturing, offering access to a growing talent pool in cities such as Austin, Dallas and Houston. 
• “This is home and where we’ve always belonged,” CEO Michael Dell said.
• Dell is riding strong momentum, with shares more than tripling in the first six months of the year.

Dell Technologies, Inc. said on Thursday that shareholders had approved the company’s proposal to formally relocate its headquarters from Delaware to Texas, the state where it was founded more than four decades ago. The move comes amid the company’s strongest annual stock rally since its return to public markets.

The S&P 500 company joins a growing list of companies that have relocated their legal domiciles to Texas, including Tesla, Oracle, Caterpillar, and Yum! Brands. 

Firms have cited a lower tax burden, a business-friendly regulatory environment, lower operating and labor costs, and abundant land for expansion as key drivers of the shift. Texas has also emerged as a major hub for technology, energy, and manufacturing, with cities such as Austin, Dallas, and Houston offering access to a deepening talent pool.

“This is home and where we’ve always belonged. Texas gave us the talent, the universities, and the environment to build something that lasts,” Dell CEO Michael Dell said in an X post, adding that 97% of shareholders approved the move. “Proud to make it official. Let’s go.”

Tesla and SpaceX CEO Elon Musk backed the move, simply responding “Texas” to Dell's post. In 2021, Tesla moved its headquarters from Palo Alto, California, to Austin, Texas, where its newly built Gigafactory Texas had begun production. Musk said at the time that the Texas move offered many benefits and that expansion in California was difficult due to high housing costs and long employee commutes. 

Dell Gains On AI Strength, Retail Mood Dips After Rally

The development comes amid a period of strength for Dell. The company is seeing surging demand in its server business, as enterprises refresh their computing infrastructure and expand capacity to handle AI workloads.

Last quarter, Dell said revenue jumped 88%, with revenue from the infrastructure solutions group tripling, and raised its full-year outlook. Dell also announced a massive, $9.7 billion contract from the Pentagon to consolidate software used across the military services, the intelligence community, and ​the U.S. Coast Guard.

Notably, DELL stock has gained 228% year-to-date, sharply outpacing the tech-heavy Invesco QQQ Trust Series 1 (QQQ), which has gained 17%. The stock is now on track for its best annual performance since returning to public markets in 2018. Dell first went public in 1988 and was taken private in 2013 by its founder and Silver Lake Partners.

Still, the retail sentiment for DELL on Stocktwits has remained in the ‘bearish’ zone for a week, amid a growing view that stock might have hit a ceiling. “$DELL is still insanely overvalued right now,” a trader wrote.

Wall Street believes it might have some more room to run. Currently, 19 out of 27 analysts rate the stock ‘Buy’ or higher, and eight rate it ‘Hold,’ with an average price target of $485.09. The target implies an expectation of an 18% rise from the stock’s closing price on Thursday. 

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