TradingKey - On September 11 Eastern Time, Dell Technologies (DELL) reached an intraday record high of $567.75, gaining over 11%.
RBC Capital recently initiated coverage on Dell with an "Outperform" rating and a target price of $640. RBC believes that enterprise investment in AI, compute modernization, storage expansion, and PC refresh demand will support Dell's performance to remain consistently above its long-term targets. Analyst David Paige stated that Dell's end-to-end product portfolio across compute, PCs, storage, and servers, combined with its massive installed base, industry-leading supply chain capabilities, and flexible consumption models (such as subscription-based delivery), position the company to continue gaining market share.
In terms of profitability structure, RBC noted that an increasing proportion of high-value-added businesses within Dell's product portfolio, along with the growth of its AI server business, are key drivers for the operating margin expansion of its Infrastructure Solutions Group (ISG). The firm also stated that Dell's robust free cash flow generation capacity supports its shareholder-friendly capital allocation.
Dell 2-hour candlestick chart, Source: TradingView
Dell's stock price is currently testing the 1.618 Fibonacci extension level ($570.90) for the second time. Moreover, the current price sits above all short-, medium-, and long-term moving averages, forming a top-to-bottom bullish alignment across the 5-day, 10-day, 20-day, 80-day, and 160-day moving averages, indicating that short- to medium-term buying power remains dominant.
Currently, the most crucial confirmation level on the upside is $570.90. If the stock can close above this level for consecutive sessions and hold it during a pullback, conditions will be set to target the 2 Fibonacci extension level ($606.06) on the upside, followed by the 2.272 Fibonacci extension level ($631.09).
If it fails to hold firm above $570.90 and falls back below the 5-day moving average ($532.77), the stock is more likely to first consolidate within the $539.06–$514.03 range, rather than immediately opening up new primary upside space.
Find out more