Dell Technologies Stock Price Forecast: Trump Recommends It, and the Stock Price Is Expected to Break Through $500 in July

TradingKey - As of the close on July 6, Eastern Time, Dell Technologies ( DELL) shares rose 4.43% to close at $411.80, with an intraday gain of up to 9%, reaching a high of $429.74. The core factor driving the strength in Dell's stock price was an endorsement from Trump. US President Trump publicly mentioned Dell computers during a White House event, saying, "Go buy a Dell computer."

From a fundamental perspective, Dell's strongest growth driver currently comes from AI infrastructure. The company's AI-optimized server revenue in the latest quarter reached $16.1 billion, representing a year-on-year increase of 757%. This figure demonstrates that Dell has clearly benefited from the demand for AI data center construction. As major tech companies continue to scale up their AI capital expenditures, market demand for AI servers, networking equipment, storage, and enterprise hardware continues to be unleashed. Dell also raised its full-year AI server revenue guidance to approximately $60 billion, indicating that management remains confident in subsequent orders.

However, investors should also note that public statements by political figures typically generate a short-term "sentiment premium," but this impact often comes quickly and fades just as fast. Without the support of additional orders, financial reports, or guidance, the stock price is prone to pulling back after a sharp run-up. So far this year, Dell Technologies has surged over 200%, with the market trend clearly pricing in the future growth of AI servers. Any signs of profit margins missing expectations or slowing orders could trigger profit-taking.

Dell Technologies Weekly Stock Chart, Source: TradingView

Looking at Dell's weekly chart, after accelerating to an all-time high of $469.47 in early June, the stock closed that week below the resistance level of $442, indicating heavy pressure at that position. Furthermore, consecutive attempts to break through this level in recent weeks have failed, subsequently driving the stock price into a high-level correction.

Dell Technologies Daily Stock Chart, Source: TradingView

Looking at Dell's daily chart, since March this year, the stock price's K-line has consistently remained above the 20-day moving average, indicating that the overall trend of the stock remains strongly bullish. However, after recent consecutive rallies, the stock has entered a normal correction phase, consolidating within the $357-$442 range. In the short term, the stock price may continue to adjust and build momentum within this range.

At present, key downside support for the stock price is at $357. If it falls below this level, the stock will enter a deeper correction phase and may move down to fill the May gap, retracing to around $310. Conversely, if the stock breaks above the resistance level of $442, further upside room will open up, with the initial target being a test of the $500 psychological barrier.