Dell Technologies Inc (NYSE:DELL) shares are rising Monday, recovering some ground after last week's AI sell-off.
Dell Bounces Back From AI Selloff
Investors are buying Dell again after last week's rough stretch. Fears of an AI bubble had hammered the stocks that gained the most from the boom, and Dell fell more than 11% on Wednesday alone. The AI Stock Bubble Index, which tracks that risk, now reads 74, an already elevated level that is near the extreme zone.
Several prominent analysts say rising rates and bond yields could soon burst the bubble. The warnings follow leaked revenue numbers at Anthropic and OpenAI that undershot forecasts. A burst would likely hit hardware sellers the hardest.
Barclays Downgrades Dell to Equal-Weight
Last Wednesday, Barclays analyst Tim Long moved Dell down to Equal-Weight from Overweight and trimmed the price target to $574 from $603. Long's main worry is valuation. Dell has soared more than 300% in 2026, and Long sees the shares as expensive. Long also doubts that companies adopting AI will spend enough on extra hardware to keep Dell's growth this strong.
Higher memory prices, Long suggested, explain much of the recent revenue growth better than a broad turn toward enterprise AI. Barclays called the AI server business healthy, but projected that Dell's overall growth will slow in the two years ahead.
Michael Dell Sees AI Demand Outpacing Supply
CEO Michael Dell takes a rosier view. In a CNBC interview last week, Dell said customers want more AI computing capacity than the industry can supply, and the CEO expects that gap to last until 2030. The Dell CEO conceded that forecasts reaching that far out are uncertain.
Dell also noted the long lead time for new chip factories, which take about four years to build while AI technology races ahead.
DELL Shares Are Climbing
DELL Price Action: Dell shares were up 0.89% at $455.75 at the time of publication on Monday, according to Benzinga Pro.