Dell Technologies Faces Challenges But Offers Investment Opportunity Amid Tariff Turmoil

NEW YORK, N.Y. — The stock market suffered a significant downturn last week following President Trump‘s announcement of a ‘Liberation Day’ tariff, impacting numerous companies, including Dell Technologies. The technology firm experienced a sharp decline, losing over 20% of its value in the first week of April.

According to investor Danil Sereda, the recent drop in Dell’s stock provides a unique buying opportunity. He emphasized, “Dell Technologies stock has dipped ~20% in the past 5 days, creating a massive buying opportunity due to its strong server business and financial performance.”

Sereda pointed out that about half of Dell’s revenues originate from international markets, making the company particularly vulnerable to trade disruptions. Despite these challenges, he believes that the firm’s AI server business holds considerable potential for growth, noting that its sales backlog surged to approximately $9 billion at the end of February — including a major $5 billion deal with Elon Musk’s xAI.

The Total Addressable Market for AI servers is predicted to grow significantly, with a compound annual growth rate (CAGR) of 34.3% forecasted from 2024 to 2030. This growth could result in a market size of $837.83 billion by 2030, creating further opportunities for Dell.

<p“No growth deterioration in sight, as long as I can see it,” said Sereda, citing a 7% increase in revenues in Q4 2025, alongside an 8% decrease in operating expenditures year-over-year.

While acknowledging the challenges posed by tariff-induced turmoil, Sereda noted that demand for AI servers is “less price elastic,” suggesting that customers may be forced to accept price increases. “In times like today, real wealth is built — as investors say, one should buy when there’s blood on the street, and looking at Dell right now, we see a real bloodbath,” Sereda added.

Sereda rates Dell a Strong Buy, a sentiment echoed on Wall Street where 11 analysts have issued Buy ratings along with 3 Hold ratings, resulting in a Strong Buy consensus rating for the company. The average 12-month price target stands at $137.17, indicating a potential upside of over 90% within the year.

Potential investors are advised to conduct their own analyses before making investment decisions. For additional stock ideas trading at attractive valuations, explore TipRanks’ equity insights tools.