Dell Shares Fall 24.15% From September Peak to $451
Dell ended the week at $451, its lowest level since September 2, after falling 24.15% from its September peak. Goldman Sachs reiterated its buy rating, while Mizuho and TD Cowen raised their price targets.
Dell Technologies (NASDAQ: DELL) has entered a bear market, with shares down 24.15% from their September peak. The stock finished the week at $451, its lowest close since September 2. Despite the decline, it is still among the S&P 500’s strongest performers, having risen 270% this year. Dell shares have fallen amid concerns about a possible AI bubble.
Stocks of major companies that benefited from the AI boom have reversed course as investors worry the bubble could burst. The AI Stock Bubble Index has climbed to an elevated risk reading of 74 and is nearing the extreme level. Some leading analysts have cautioned that the bubble may burst soon, citing rising interest rates and bond yields. Their warnings came as revenue figures leaked by companies including Anthropic and OpenAI fell short of expectations.
A burst in the bubble would significantly affect companies that have benefited from the boom, including Dell, HP Enterprise and Lenovo, which sell servers and storage equipment to hyperscalers and neoclouds. Read also: Nebius Stock Falls After Key Gartner Warning as Short Interest Nears 20%. On the positive side, signs point to Dell’s business Dell continues to perform well despite ongoing concerns about the AI industry. In its latest earnings report, revenue rose 58% to $47 billion in the second quarter, matching analyst expectations and the company’s guidance.
Analysts expect revenue to increase 70% to $193 billion this year and reach $229 billion next year. Margins are also expected to expand, potentially giving Dell more capacity to repurchase shares. The company has returned $4.3 billion to shareholders through dividends and buybacks, while its outstanding share count has declined to 319 million from 357 million in 2025. Analysts remain bullish on Dell as its growth continues.
Goldman Sachs (NYSE: GS) reiterated its buy rating. Mizuho’s Vijay Rakesh raised his price target from $600 to $650, TD Cowen’s Krish Sankar lifted his from $500 to $550, and Morgan Stanley’s Erik Woodring increased his target to $511. Technical indicators, however, point to potential further downside before a rebound. The stock formed a double-top pattern at $594, with a neckline at $519.2.
The pattern often precedes a bearish reversal. The next key target is the ascending trendline joining Dell’s lowest swings in February, March and April, which also aligns with the Ultimate Support level on the Murrey Math Lines. The stock may continue declining in the coming weeks as big-tech earnings begin to arrive. Read also: S&P 500 Index Outlook: Strong Earnings Meet AI Rout, $110 Oil Prices