Dell Technologies: Hold Rating Amid Mixed Signals and AI-Driven Challenges

Dell Technologies (DELL – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mehdi Hosseini from Susquehanna reiterated a Hold rating on the stock and has a $105.00 price target.

Mehdi Hosseini has given his Hold rating due to a combination of factors influencing Dell Technologies’ financial outlook. The company’s recent earnings report for the first quarter of fiscal year 2026 showed revenue in line with expectations but operating and gross margins slightly below consensus. This indicates a competitive pricing environment in both servers and PCs, which affects profitability. Additionally, while Dell’s AI server bookings are promising, the full economic impact of AI, particularly in inferencing, remains uncertain.
Furthermore, Dell’s guidance for the second quarter of fiscal year 2026 exceeded expectations, driven by record AI server bookings. However, the company’s ability to maintain flat operating margins year-over-year is contingent on successful operational expense reductions to counterbalance the margin pressures from AI servers. These mixed signals, with potential for growth but also significant challenges, underpin the Hold rating as the company navigates these dynamics.

Hosseini covers the Technology sector, focusing on stocks such as Teradyne, Applied Materials, and NetApp. According to TipRanks, Hosseini has an average return of 11.0% and a 55.02% success rate on recommended stocks.

In another report released today, Barclays also maintained a Hold rating on the stock with a $123.00 price target.