Dell Stock Gains as Super Micro, Lenovo Beat Expectations
Dell Technologies Inc. (NYSE:DELL) shares are trading higher Thursday, touching a new all-time high, as strength across the server hardware sector lifts the stock following upbeat results this week from Super Micro Computer and Lenovo.
- Dell Technologies shares are testing new highs. Why are DELL shares at highs?
Super Micro’s Earnings Beat Sets the Tone
Dell’s climb to a fresh all-time high Thursday comes on the back of a strong week for server hardware makers more broadly. Super Micro Computer Inc (NASDAQ:SMCI) kicked off the sector’s momentum Tuesday, reporting fourth-quarter earnings of $1.70 per share, far above the 62-cent consensus estimate, according to Benzinga Pro data.
Revenue came in at $11.12 billion, short of the $12.33 billion analysts expected but nearly double the $5.76 billion the company posted a year earlier.
Super Micro’s outlook for the current quarter topped estimates as well. The company guided to first-quarter adjusted earnings of $1.01 to $1.10 per share, above the 72-cent analyst estimate, and revenue of $14.5 billion to $15.5 billion, well ahead of the $12.02 billion analysts had modeled.
Lenovo Adds to the Sector’s Strength Two Days Later
Super Micro’s report wasn’t the only sign of health in the server hardware space this week. Lenovo Group Ltd (OTC:LNVGY) followed Thursday with its own record quarter, posting first-quarter group revenue of $26.9 billion, up 43% year-over-year and the strongest quarterly figure in the company’s history.
Adjusted net income rose 176% to $1.1 billion, surpassing $1 billion for the first time, while AI-related revenue climbed 60% to $9.3 billion, now making up 35% of total group revenue.
DELL’s Trend is Extended — And That’s the Point
Dell shares are trading 15.6% above their 20-day average price of $431.63 and 18.6% above their 50-day average of $420.83. The gap widens further out, with shares running 53.9% above the 100-day average of $324.21 and 118.7% above the 200-day average of $228.20. Thursday’s high of $514 pushed the stock to a new all-time high, well above its prior 52-week range of $110.22 to $485.70.
The stock’s broader trend structure still favors buyers. Its 20-day average remains above its 50-day average, and a golden cross from March, when the 50-day average climbed above the 200-day average, continues to underpin the uptrend. Dell has moved past its most recent swing low from June and its swing high from August, putting the stock in breakout mode, a phase where whether buyers keep pushing the price higher matters more than the initial move itself.
The MACD indicator is reinforcing that picture, sitting above its signal line with a positive histogram that points to strengthening momentum. Traders are watching $500 as a resistance level just above the current price, and $431.63, in line with the 20-day average, as the support level likely to be defended first if the stock pulls back.
DELL Shares Are Climbing
DELL Price Action: Dell shares were up 2.46% at $496.43 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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