Dell Technologies Surges 1.71% on AI Momentum and Strategic Acquisitions

Summary
• DELL trades at $125.045, up 1.71% intraday
• Acquires AI data startup Dataloop for $120M in cash
• Analysts project $164.70 price target, 28.8% upside
• Sector peers like HPQ lag with -0.746% decline

Dell Technologies (DELL) is surging on a confluence of strategic AI investments and robust infrastructure growth. The stock’s 1.71% rally to $125.045 reflects optimism around its $120M acquisition of Dataloop and $14.1B AI server revenue. With analysts forecasting a 28.8% upside and a 24% YoY Infrastructure Solutions Group (ISG) growth, DELL’s AI infrastructure play is outpacing sector peers like HPQ (-0.746% intraday).

AI Infrastructure and Strategic Acquisitions Drive DELL's Rally
Dell’s 1.71% intraday surge is fueled by its $120M acquisition of AI data startup Dataloop, which enhances its AI infrastructure capabilities. The deal aligns with DELL’s $14.1B AI server revenue target and 24% YoY ISG growth. Analysts highlight DELL’s undervalued P/E of 15.6x versus peers’ 21.2x, while technical indicators like oversold RSI (25.66) and bullish moving averages signal a buy-the-dip setup. The stock’s rebound to $125.045 also reflects confidence in its $25B AI server shipment goal by FY2027.

Tech Hardware Sector Mixed as DELL Outperforms HPQ
The Technology Hardware, Storage & Peripherals sector is mixed, with DELL outperforming HPQ (-0.746% intraday). DELL’s AI infrastructure focus contrasts with HPQ’s struggles in PC pricing and supply chain issues. While DELL’s Infrastructure Solutions Group (ISG) grew 24% YoY, HPQ’s Client Solutions Group faces margin pressures. DELL’s 18-20% discount to fair value ($163.30) versus HPQ’s 21.2x P/E underscores its contrarian appeal.

Options and ETFs for DELL’s AI-Driven Breakout
• 200-day MA: $121.75 (below current price)
• RSI: 38.23 (oversold)
• MACD: -2.54 (bearish), Signal: -1.97
• Bollinger Bands: $118.99–$145.22 (range-bound)

DELL’s technicals suggest a short-term bounce after hitting oversold RSI levels. Key support at $123.70 (intraday low) and resistance at $126.61 (intraday high) define a tight trading range. The 125/130 bull call spread offers 85% profit potential with 15% risk, aligning with DELL’s AI momentum. Two top options:

• DELL20251226C125 (Call, $125 strike, 12/26 exp):
- IV: 33.98% (moderate)
- Delta: 0.609 (high sensitivity)
- Theta: -0.369 (rapid time decay)
- Gamma: 0.060 (volatility responsive)
- Turnover: 22,543 (liquid)
- Leverage: 37.21% (high reward)
- Payoff at 5% upside ($131.29): $6.29/share. Ideal for aggressive bulls.

• DELL20251226C127 (Call, $127 strike, 12/26 exp):
- IV: 29.34% (moderate)
- Delta: 0.479 (balanced)
- Theta: -0.311 (high decay)
- Gamma: 0.072 (responsive)
- Turnover: 3,550 (liquid)
- Leverage: 63.27% (aggressive)
- Payoff at 5% upside ($131.29): $4.29/share. Best for mid-term AI optimism.

Action: Aggressive bulls may consider DELL20251226C125 into a break above $126.61.

Backtest Dell Technologies Stock Performance
The backtest of DELL's performance after a 2% intraday surge from 2022 to the present reveals favorable short-to-medium-term gains. The 3-Day win rate is 56.66%, the 10-Day win rate is 60.83%, and the 30-Day win rate is 60.64%, indicating a higher probability of positive returns in the immediate aftermath of the surge. The maximum return during the backtest period was 8.36%, which occurred on day 59, suggesting that there is potential for significant gains following the intraday increase.

Position for DELL’s AI-Driven Breakout
Dell’s AI infrastructure momentum and undervalued fundamentals position it for a breakout. With a 28.8% upside to $164.70 and 24% YoY ISG growth, the stock’s 1.71% rally reflects confidence in its $14.1B AI server business. Watch for a break above $126.61 (intraday high) to confirm bullish momentum. Sector leader HPQ (-0.746% intraday) lags, highlighting DELL’s AI-driven edge. Act now with the DELL20251226C125 call option to capitalize on its AI infrastructure tailwinds.