Dell Technologies Inc. (NYSE: DELL) is having a bit of a hangover Thursday. After a monster 15.76% rally on Wednesday that pushed the stock to $492, shares are giving back a little ground as investors lock in gains. It's the classic post-earnings profit-taking move, and it's not exactly a shock.
Despite the mild pullback, Dell is still up for the week. The broader market is basically flat this morning, with Nasdaq futures down 0.06% and S&P 500 futures up 0.07%, so this is really a stock-specific story.
Earnings Beat
The excitement started Tuesday when Dell reported its fiscal second-quarter 2027 results. The numbers were, to put it mildly, impressive. Adjusted earnings came in at $7.04 per share, blowing past the Wall Street consensus of $4.91 per share by a whopping 43%. Revenue jumped 58% year over year to $46.97 billion, also topping the Street's expectation of $44.95 billion.
What's driving all this growth? The company says it's strong demand for servers and AI infrastructure. In other words, the AI boom continues to be very, very good for Dell.
Technical Analysis
Looking at the charts, Dell is in a solid longer-term uptrend. The stock is trading 5.7% above its 20-day simple moving average (SMA) of $458.66, 11.3% above its 50-day SMA of $435.51, 33.3% above its 100-day SMA of $363.79, and a whopping 94.3% above its 200-day SMA of $249.53. That kind of distance from the longer-term averages is what technicians call "extended but still trending." Bulls want to see any pullback stay orderly and hold above key trend lines.
Here are the levels to watch:
- Key Resistance: $485.50 — a nearby ceiling where rebounds could stall, especially since the price is already close to that area.
- Key Support: $424 — a prior buyer-defense zone that also lines up as a "must-hold" area if the pullback deepens.
Analysts are feeling pretty good about Dell too. On Sept. 2, Citigroup maintained a Buy rating and raised its price target to $600. JPMorgan kept an Overweight rating and bumped its target to $635. And Melius Research, also with a Buy, raised its target to $735. That's a lot of optimism.
As of premarket trading Thursday, Dell shares were down 1.67% at $484.00, according to market data. It's a small dip, but after a move like Wednesday's, it's hardly a reason to panic.
