Dell stock rises following Barclays upgrade to Equal Weight

Barclays analysts have upgraded Dell Technologies (DELL) from Underweight to Equal Weight, believing the stock has shed any AI-related downsides in recent tech pullbacks.

Julie Hyman and Josh Schafer weigh in on the note out from Barclays and whether Wall Street is viewing Dell as a buying opportunity at this moment.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Luke Carberry Mogan.

Video transcript

Call of the day.

Now sticking with tech, we're looking at Dell Barclays is upgrading the stock from underweight to equal weight.

The note citing less downside to the stock now that most of the A I hype has been taken out of the share price.

Interesting here because, you know, it's just an upgrade to equal weight.

It is not a terribly effusive note in terms of praising Dell and the business prospects.

Um but it is interesting that it just basically says the stock has fallen enough.

It's the the opposite of a lot of the research that I've read on Dell over the last six months, right?

Which is I'm upgrading Dell shares because of their A I prospects and we saw the big rally in Dell stock and it seems like the Barclays analyst didn't want to be a part of that rally and didn't really trust it.

And now they feel like the stock is more at a buyable point, but it's just interesting to think about the different ways.

I think my takeaway here being the different ways people think about the A I hype, right?

And if the A I hype isn't actually why a stock should be going up so much, then maybe that's not a reason to be in it.

That sort of seems to be the reasoning here.

To me, it's also interesting that they point out A I servers have lower gross margins because I feel like a lot of the A I discussed business is maybe higher margin.

Or maybe I'm just thinking again of NVIDIA where they're higher cost chips that are more complex.

I don't know.

I just thought that was an interesting point.

I would think a I higher margins as well.

That's what they, that's what they say on all the earnings calls and they say a, I, I guess not in this particular case.