The healthy spending on artificial intelligence (AI) infrastructure and devices has been a tailwind for Dell Technologies (NYSE: DELL) in recent quarters, but shares of the company have struggled to gain any momentum on the market despite an improving growth profile.
Specifically, Dell stock has gained just 5% in 2025 as of this writing. That’s half of the returns clocked by the tech-laden Nasdaq Composite index this year. The stock received another shock recently as it dropped lower following the release of its fiscal 2026 second-quarter results (for the three months ended Aug. 1) on Aug. 28, losing nearly 9% of its value the following day.
However, a closer look will tell us that Dell’s recent drop isn’t justified. Let’s look at the reasons why.