TLDR
- GF Securities analyst Jeff Pu downgraded Dell from Buy to Hold, citing limited upside after a near 200% stock rally
- The analyst maintained a $445 price target but flagged rich valuations at over 20x consensus FY28 earnings
- Dell director Lynn Radakovich sold $5.06 million in stock on June 22, exercising options at $31.14 and selling at $421.00 per share
- GF Securities raised concerns that Dell could lose market share to Super Micro for SpaceX’s next deployment cycle starting in 2027
- Dell stock was trading around $434, down roughly 5% on the day following the downgrade
Dell Technologies (DELL) is trading around $434 Thursday, down over 5% after GF Securities analyst Jeff Pu cut his rating on the stock from Buy to Hold.
The downgrade follows a near 200% surge in Dell’s stock since the company reported its fiscal fourth-quarter results back in February.
Pu kept his price target at $445 but said the risk-reward no longer looks attractive at current levels.
“While recent GB300/HGX orders provide near-term tailwinds, we see limited upside amid already elevated expectations,” Pu wrote. He noted that an AI revenue revision to $70 billion or more, along with the related lift to group revenue and EPS, is already widely expected by the market.
At more than 20x consensus FY28 earnings estimates, or a sum-of-the-parts valuation of 25x AI and 15x core business, the analyst said the setup is simply not compelling enough to stay bullish.
Market Share Concerns Weigh on Outlook
Pu also raised a longer-term concern that hit sentiment hard. He expects Super Micro (SMCI) to gain share in SpaceX’s next gigawatt-scale deployment starting in 2027.
Dell currently holds a major position as a supplier to SpaceX and is the sole supplier to CoreWeave (CRWV). But Pu noted both companies are evaluating an ODM-direct model, which could chip away at Dell’s leading position over time.
That’s a risk the market hadn’t fully priced in, and it added fuel to Thursday’s sell-off.
The news came alongside a separate filing showing that Dell director Lynn Radakovich sold $5.06 million worth of stock on June 22. She exercised options at $31.14 per share and immediately sold the same 12,022 shares at $421.00 per share.
The transactions were carried out under a pre-arranged Rule 10b5-1 trading plan adopted in March 2026. Following the sale, Radakovich still directly holds 25,267 shares and retains options on 51,979 more.
Strong Run Leaves Little Room for Error
Dell has had a strong year by any measure. The stock is up over 247% year-to-date and carries a market cap of around $277 billion.
The company recently launched its PowerEdge XE8812 server with Nvidia’s Vera Rubin NVL4 architecture, supporting up to 144 GPUs per rack. It also secured a $1.4 billion contract with the U.S. Air Force for Microsoft enterprise software licenses.
Dell also completed a $3 billion senior notes offering, split across three tranches with maturities in 2031, 2034 and 2037.
Despite those positives, some analysts have flagged Dell’s heavy debt load and negative equity as vulnerabilities if credit conditions tighten.
Dell’s stock was down around 5.36% on Thursday afternoon, trading near $434.
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