Gabelli Funds Portfolio Manager and Tech Analyst Hendi Susanto in Bloomberg

Dell’s 90% Rally Hits Wall as AI Optimism Met With Reality Check

    • Investors like Gabelli Funds say they seek better entry point
    • Pivot to revenue growth now expected later next year

Some Dell Technologies Inc. investors are questioning whether the stock’s price tag justifies growth that hasn’t materialized yet.

The personal computer maker’s shares soared nearly 90% to a record through the end of November, amid expectations of a boost from artificial intelligence demand. The stock, which is trading above its five-year average at about 10 times forward earnings, has faltered since Dell’s third quarter report showed the AI boost is far off.

“We are waiting to seek a better entry point,” said Hendi Susanto, an analyst at Gabelli Funds. “The stock had run up significantly and we are taking a patient approach when it comes to the AI growth opportunity.”

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