Dell stock jumped on Monday after President Donald Trump urged Americans to buy a Dell and said founder Michael Dell’s $6.25 billion donation to Trump Accounts would be repaid.

Trump made the comments while promoting the new Trump Accounts savings program, and they briefly extended a rally that has tracked his stock endorsements all year.

A Familiar Pattern of Endorsements

Shares of Dell Technologies (DELL) jumped as much as 10% to an intraday high near $429.35 after the remarks, adding more than $15.8 billion in market value.

The pop followed a script investors know well. Trump first told a Georgia crowd to buy a Dell in February, then repeated the line at a May White House event that lifted the shares to a record.

“Go out and buy a Dell. We’ll get them that money back one way or another. I also want to thank Micron,” Trump said during the opening bell on Wall Street to launch Trump Accounts.

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The timing has drawn scrutiny. Trump’s account bought $1 million to $5 million of Dell stock on February 10, nine days before that first endorsement, part of a trading record that broke with blind-trust norms.

Ethics experts have called his buying and praising of the stock a conflict of interest. Dell has more than tripled since February, one of several Trump-promoted US stocks to rally on his words.

AI Demand Drives the Rally

The gains rest on more than politics. In its most recent quarter, Dell’s AI server revenue reached $16.1 billion, up 757% from a year earlier, according to a company filing.

Management has since raised its full-year AI server target to about $60 billion, and its order backlog tops $50 billion. That record earnings report fed the run. Around the same time, the Pentagon awarded Dell a $9.7 billion, five-year IT contract.

What Could Stall the Dell Stock Rally

Still, the rally has outrun the fundamentals for some analysts. Truist’s Matthew Niknam kept a hold rating even after lifting his price target to $360, noting Dell trades far above its long-run average near nine times earnings.

Margins tell a similar story. Dell’s gross margin fell from about 21% to under 18% in a year as it leaned on costly Nvidia chips and scarce memory. Broader memory supply glut fears have since hit chipmakers, including Micron.

The stock is whipsawing, too. Dell dropped almost 8% on July 2, and recent AI bubble warnings from investor Michael Burry have unsettled the trade. Whether AI demand can justify the price may come down to Dell’s next earnings report.

Источник: BeInCrypto