Dell Stock Slides despite Adding 1,000 New Enterprise AI Customers

Shares of Dell (DELL) fell today despite the tech firm announcing that it added 1,000 new customers for its AI Factory product line last quarter. This brings the total to 5,000 clients as more traditional enterprises move AI workloads onto their own systems. CEO Michael Dell said that customers, including Eli Lilly (LLY), Honeywell (HON), and Samsung (SSNLF), are using Dell's AI servers, Nvidia (NVDA) chips, software, and services for work such as drug discovery and AI-optimized semiconductor factories.Claim 55% Off TipRanksNew trading tool for NVDA bears He argued that Dell is "winning disproportionately" because many large companies already trust Dell with their existing infrastructure and are now turning to it for AI. In addition, older companies face challenges that AI-native startups do not. For instance, Michael Dell said that some businesses have decades of data trapped in legacy systems, and simply bolting AI onto old processes will not work. To help with that shift, Dell is introducing new products designed to let companies run AI agents more cheaply and securely inside their own networks. One example is Dell Deskside Agentic AI, which runs on a customer's Dell machines using Nvidia software instead of relying fully on the cloud. Dell is also partnering with Google (GOOGL), Palantir (PLTR), and Elon Musk's SpaceX to bring their AI models and tools into corporate networks, or into hybrid setups that combine cloud and in-house systems. French AI startup Mistral is also expected to expand its work with Dell by using servers powered by Nvidia GPUs to build and distribute its AI models. Is DELL Stock a Good Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on DELL stock based on 12 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average DELL price target of $218.87 per share implies 7.3% downside risk.