Dell Technologies Inc. (NYSE:DELL) stock surged Wednesday after the company posted strong fiscal 2027 second-quarter results. Robust demand for servers and AI infrastructure helped Dell beat Wall Street estimates.
The rally came despite broader market weakness. Nasdaq futures fell 0.40%, while S&P 500 futures slipped 0.14%.
The company reported adjusted earnings of $7.04 per share, beating the analyst estimate of $4.91 by 43%. Revenue surged 58% year over year to $46.97 billion, topping the $44.95 billion consensus estimate.
Dell Issues Strong Outlook
The company expects third-quarter adjusted earnings of $6.50 per share. That is well above the $4.49 analyst estimate.
It also projected revenue of $49 billion, compared with the $41.43 billion consensus forecast.
Technical Analysis
The stock remained in a long-term uptrend. It traded 0.5% above its 20-day simple moving average of $457.18. It was also 5.8% above its 50-day average of $434.22.
In addition, shares stood 27.4% above the 100-day average and 85.4% above the 200-day average.
However, momentum showed signs of cooling. The moving average convergence divergence indicator remained below its signal line, while the histogram was negative.
Resistance stood near $463.50. Meanwhile, support emerged around $424, close to the 50-day average.
Dell Analyst Outlook
The stock holds a Buy consensus rating and an average price forecast of $496.11.
Bank of America maintained a Buy rating on Wednesday and raised its price forecast to $600. Deutsche Bank initiated coverage Tuesday with a Hold rating and a $480 forecast.
Benzinga Edge Rankings
Dell has a Momentum score of 98.89 and a Growth score of 77.28. However, its Value score stands at 24.8, according to the Benzinga Edge stock rankings.
The readings point to strong momentum and growth. Still, the weaker value score could increase downside risk if the rally loses steam.
Dell Price Action
DELL Price Action: Dell Technologies shares were up 7.65% at $457.50 during premarket trading on Wednesday, according to Benzinga Pro data.
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