Dell falls heading into results as investors eye AI demand
DELL•Analyst sentiment
Twenty of 29 analysts rate the stock "strong buy" or "buy," while nine rate it "hold"; the median price target is $500.
Stock performance and valuation
Despite the decline, the stock has soared nearly 250% year to date, far outpacing the S&P 500's .SPX roughly 12% gain and the S&P 500 Tech sector's .SPLRCT roughly 22% advance.
DELL recently traded at 21 times forward earnings, well above its five-year average P/E of 11.
Shares slip ahead of quarterly results
Dell's DELL.N shares were down 4.3% at $436.60 on Tuesday ahead of quarterly results due after the bell, with focus on its AI server business and outlook.
Wall Street expects the server and PC maker to report fiscal second-quarter revenue up 51% year over year to $44.9 billion and adjusted EPS of $4.91, up from $2.32 a year ago, according to LSEG.
Last quarter, the company substantially raised its annual forecasts, driven by surging demand for its AI servers.
