Dell Technologies Inc. (NYSE:DELL) stock rose about 3% on Tuesday, rebounding after falling nearly 6% in the previous session. The move came despite broad weakness across U.S. equities.
The Nasdaq fell 0.64%, while the S&P 500 lost 0.54%. The technology sector also traded lower.
Monday’s sell-off followed calls from leaders at major artificial intelligence companies, including Anthropic and OpenAI, to slow advanced AI development over safety concerns. The debate fueled concerns that slower AI investment could eventually hurt demand for chips and data center hardware.
Meanwhile, President Donald Trump pushed back against those concerns. He highlighted AI and data centers as important economic drivers and stressed the need to compete with China.
Technical Analysis
Dell’s rebound stands out against a weak market. Ten of 11 sectors traded lower Tuesday, while the Russell 2000 fell 1.22%.
The stock remains in a strong longer-term uptrend. It trades 13.2% above its 20-day simple moving average of $485.02 and 20.8% above its 50-day SMA of $454.44. It is also 106.5% above its 200-day SMA of $265.91.
The 20-day SMA remains above the 50-day SMA. Dell also formed a golden cross in March, when its 50-day SMA moved above the 200-day SMA.
Meanwhile, the MACD remains above its signal line with a positive histogram. That suggests buyers are regaining momentum.
The 52-week high of $567.75 is the key resistance level. The 20-day SMA at $485.02 offers the first major area of trend support.
See More: Top Value Stocks
Analyst Outlook
Dell carries a Buy consensus rating with an average price forecast of $580.81.
RBC Capital initiated coverage with an Outperform rating and a $640 price forecast on Sept. 10. Evercore ISI maintained Outperform and raised its forecast to $650 on Sept. 9. Citigroup maintained Buy and lifted its forecast to $600 on Sept. 2.
Benzinga Edge Rankings
Dell scores strongly on momentum in the Benzinga Edge rankings, with a score of 99.49. However, its Value score stands at 24.54, signaling a relatively expensive valuation. Its Growth score is 55.34.
That combination points to a momentum-driven setup. However, the weaker Value score could increase downside risk if sentiment cools.
ETF Exposure
Dell also carries meaningful weight in several ETFs. The Tortoise AI Infrastructure ETF (NYSE:TCAI) has a 6.14% allocation to Dell, while the American Customer Satisfaction ETF (BATS:ACSI) has a 4.88% weighting.
The leveraged GraniteShares 2x Long DELL Daily ETF (NASDAQ:DLLL) has concentrated exposure to Dell. As a daily leveraged product, however, its weighting should not be interpreted the same way as a conventional diversified ETF.
Price Action
Dell Technologies shares were up 2.98% at $550.22 at the time of publication Tuesday, according to Benzinga Pro data.
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