Trump’s Support Significantly Boosted Dell Stock Price, What Information Do You Need to Know?

TradingKey - On July 6, Eastern Time, Trump hosted a unique bell-ringing ceremony in the White House Oval Office, ringing the opening bells of both the New York Stock Exchange and Nasdaq simultaneously, declaring the official launch of the "Trump Accounts" (530A children's investment accounts) for American children under 18.

At the ceremony, Trump stood side-by-side with Dell ( DELL) founder Michael Dell, publicly calling on the American public to "go out and buy a Dell computer" to express gratitude for the Dells' previous commitment to donate over $6 billion to the "Trump Accounts" project.

Trump humorously remarked: "We will definitely help him earn this money back, and then I will ask for another $6 billion." This marks the third time this year that Trump has publicly supported Dell; similar statements in February and May both triggered significant increases in Dell's stock price.

So, is the Trump-backed Dell worth investing in? As an investor, do you know this company?

Why Trump Backs Dell?

Trump's high-profile support for Dell is the result of multiple overlapping motives.

The most direct reason is to show gratitude for the Dells' massive donation to the "Trump Accounts" initiative. As an important social initiative of the Trump administration, the program aims to provide tax-advantaged investment vehicles for youth from low-income families, and the Dells' donation of more than $6 billion undoubtedly provided critical support for the project's smooth launch. By publicly urging people to buy Dell products, Trump is both reciprocating the donation and attracting more corporate participation to the program.

From a political perspective, the relationship between Trump and the Dell family is long-standing. As a prominent figure in the U.S. business community, Michael Dell has been a staunch supporter of Trump, not only providing substantial financial support during the campaign but also aligning closely with the Trump administration's pro-business stance on policymaking.

Trump's public endorsement is both a reward for a political ally and a way to further consolidate his support base within the business community.

In addition, Trump himself holds Dell stock. According to his 2025 annual financial disclosure filing released last week, he completed 24 Dell stock transactions across five accounts, including 16 buys and 8 sells, with a total value of approximately $300,000 to $1 million. Trump's public comments also objectively drove up Dell's share price, yielding gains for his personal investments.

What Kind of Company Is Dell?

As a pioneer in global digital transformation, Dell Technologies (DELL) has evolved from a pioneer in direct PC sales into a tech giant capable of providing end-to-end solutions from client hardware to complex multi-cloud architectures.

The company, founded by Michael Dell, is now leveraging its robust supply chain advantages and deep enterprise customer base to actively participate in the new wave of AI-driven industrial transformation, becoming a key architect of the next-generation computing ecosystem.

Fiscal year 2025 can be called a "breakthrough year" for Dell, with full-year revenue reaching $95.6 billion, up 8% year-over-year, and its core business achieving double-digit growth.

Benefiting from the explosion of the AI wave, Dell historically drove its diluted earnings per share (EPS) to $6.38, representing a 39% surge year-over-year.

The group's PowerEdge server family, particularly the XE9680 model optimized for AI, has become the preferred platform for enterprises to deploy AI training and inference tasks due to its deep integration of high-performance GPUs from Nvidia and AMD, driving order demand to record highs.

In the storage sector, Dell continues to solidify its leadership in the global enterprise storage market with its PowerStore and PowerScale product lines, whose high-performance file storage systems provide a stable and efficient data supply for AI training clusters, perfectly matching the demanding requirements of large model training for massive data throughput.

Complementing this, the Client Solutions Group (CSG) focuses on innovation in end-user interaction hardware, generating $48.4 billion in full-year revenue. In the commercial PC segment, the Latitude, Precision, and OptiPlex series, with their high reliability and outstanding lifecycle management capabilities, have become core choices in enterprise IT refresh cycles, contributing a steady stream of profits.

In the consumer market, the ultimate industrial design of XPS, the excellent cost-performance of Inspiron, and the extreme performance of the Alienware gaming brand jointly build a product matrix covering all use cases.

Of particular note, Dell has established a clear lead in the AI PC space, pioneering the integration of Neural Processing Units (NPUs) into its notebook products, which allows users to process local AI tasks without relying on cloud computing power, achieving the native deployment of generative AI on client devices.

Is Dell Stock Worth Buying?

Over the past 12 months, Dell Technologies' stock has surged over 260%, with its cumulative gain from its 2024 low exceeding 300%, making it one of the most outstanding technology stocks in the S&P 500.

Once written off by industry analysts, this traditional hardware vendor has successfully pivoted from a PC manufacturer to a leader in AI infrastructure through its strategic transition in the AI era, with its investment value now being re-evaluated by the market.

Following the launch of its 'AI Factory' solutions in 2025, Dell's AI business entered a period of explosive growth. According to its latest earnings report, for the quarter ending May 2026, Dell's AI server sales surged 757% year-over-year to $16.1 billion, accounting for more than 60% of total server revenue.

The key to Dell's ability to overtake competitors in the AI server business lies in its forward-looking product layout and deep enterprise customer base.

The company's PowerEdge XE9680 servers integrate high-performance GPUs from Nvidia and AMD, optimized specifically for AI training and inference workloads, becoming the preferred hardware platform for tech giants such as OpenAI and Microsoft. As of the first quarter of 2026, Dell's AI server shipments accounted for 18% of the global market, second only to Nvidia, cementing its position as a core player in the AI infrastructure sector.

From a valuation perspective, Dell's current forward P/E ratio is about 25 times, lower than Nvidia's 35 times and AMD's 30 times; considering the high growth rate of its AI business, its valuation remains attractive.

Company management expects AI server revenue to reach $60 billion in fiscal 2027, a year-over-year increase of 140%. If achieved, this target will further drive an expansion of its valuation.

In addition, Dell boasts a healthy cash flow profile, with cash flow from operations reaching $4.1 billion in the second quarter of fiscal 2026, a record high for the same period. The company announced a 20% dividend hike and boosted its share buyback program by $10 billion, further enhancing the investment's margin of safety.

What Risks to Watch When Investing in Dell Stock?

Although Dell has demonstrated strong growth momentum amid the AI boom, it still faces numerous challenges requiring urgent breakthroughs in a complex and volatile market environment, making these risks key areas of focus for investors.

The explosive growth of the AI server segment has attracted a collective influx of global tech giants, leaving Dell facing unprecedented competitive pressure.

Nvidia firmly commands a dominant market position by leveraging its GPU technology advantages and complete AI ecosystem. Meanwhile, Intel and AMD are continuously optimizing AI server solutions through chip technology innovation.

In an AI industry characterized by extremely rapid technological iteration, Dell must continuously increase its R&D investment to keep pace with cutting-edge technology trends. While maintaining its leadership in hardware performance, the company needs to satisfy the customized needs of clients across various industries through differentiated competitive strategies.

In addition, although the PC business's share of Dell's revenue has dropped to 42%, it remains an important source of cash for the company. However, the global PC market has entered a stage of saturated competition with sluggish growth; Dell faces fierce pressure from rivals like HP and Lenovo, with its market share showing a gradual downward trend.

Meanwhile, macroeconomic factors such as the slow global economic recovery, escalating geopolitical conflicts, and rising interest rates are challenging investment confidence in the tech sector. Although the AI industry is viewed as a long-term secular trend, short-term technological bottlenecks and a slower-than-expected pace of commercialization could trigger a valuation correction for tech stocks.

Conclusion

Trump's public endorsement was undoubtedly a major catalyst for the surge in Dell's stock price, but what truly determines its long-term investment value is the company's strategic positioning in the AI infrastructure sector and the long-term growth potential driven by favorable tilts in government orders.

For investors, they should not be completely swayed by short-term stock price fluctuations and hot events, but should instead evaluate Dell's investment value from a longer-term perspective.

On the one hand, attention should be paid to the sustained growth capability of the company's AI business, including progress in technological innovation, product iteration, and customer expansion. On the other hand, the impact of external factors such as the macroeconomic environment and the industry's competitive landscape on company performance must be considered. At the same time, investors need to decide whether to engage in short-term trading or long-term allocation based on their own risk tolerance.