Dell Technologies stock surged to an all-time high of $263.99 after Donald Trump encouraged Americans to buy the company’s products. The endorsement follows a $6.25 billion pledge from Michael and Susan Dell to a child investment program linked to the Trump administration. The rally builds on a 107% year-to-date gain fueled by strong demand for Dell's artificial intelligence servers, though one analyst warns the stock is now fairly valued.
Dell Technologies (NYSE:DELL) shares surged as much as 14.6% to a record high on Friday after former President Donald Trump publicly recommended the company’s products, adding fuel to a rally already powered by strong demand for its AI hardware.
"Go out and buy a Dell," Trump told attendees at a White House Mother's Day event, where he thanked the Dell family by name for their philanthropic contributions. The comments came five months after Michael and Susan Dell pledged $6.25 billion to support "Trump Accounts," a federal investment program for American children scheduled to launch on July 4, 2026.
The stock hit an intraday peak of $263.99 before closing at $260.46, up roughly 12% for the day and capping its best week in over two years. Shares are now up 107% year-to-date, driven by the company booking over $64 billion in AI-related orders in fiscal 2026. Dell entered fiscal 2027 with a record $43 billion server backlog, and management projects AI server revenue to nearly double to $50 billion this year.
The surge highlights the powerful combination of political influence and the market's immense appetite for AI-related stocks. However, the rally's sustainability is being questioned. UBS recently downgraded Dell to neutral from buy, arguing that accelerating AI server demand is now "largely priced in" following the stock's 172% run over the past 12 months. The bank raised its price target to $243, implying downside from current levels.
The UBS call stands in contrast to other recent analyst actions. Mizuho analyst Vijay Rakesh raised his price target on Dell to $260 just two days before the White House event, citing expanding enterprise demand for AI infrastructure. Bank of America and Citigroup also raised their targets in late April. Of 28 analysts covering Dell, 20 currently have a buy or strong buy rating, according to LSEG data.
The Dell family’s multi-billion-dollar contribution will fund $250 deposits into investment accounts for children born before the main federal program's eligibility period, targeting families in lower-income ZIP codes. Michael Dell, who has an estimated net worth of about $165 billion, said the contribution aimed to give children “a financial headstart” linked to long-term stock market participation.
This article is for informational purposes only and does not constitute investment advice.
