Should I buy Dell stock in 2025? South Africa Investment Insights

What is Dell?

What is the price of Dell stock?

The price of Dell stock is falling this week. As of the latest update, Dell trades at $113.77 USD, reflecting a 0.19% decrease over the past 24 hours and a decline of around 31.5% year-to-date. The company’s market capitalisation stands at $77.76 billion, and while recent average daily trading volume has not been specified, Dell’s P/E ratio is 17.84 with a dividend yield of 1.85%. The stock beta sits at 1.32, indicating above-average volatility. For investors in South Africa, Dell’s high beta and dynamic role in AI infrastructure suggest both opportunity and risk in today’s rapidly evolving tech market.

Our full analysis on the Dell stock

After an in-depth review of Dell Technologies’ latest financial results and a granular assessment of its share price evolution over the past three years, it is clear that this stock merits renewed investor attention. Leveraging a multifactor analysis combining financial ratios, technical indicators, sector benchmarks, and peer comparisons through our proprietary models, Dell emerges as a technology name with robust underpinnings and bullish prospects. So, why might Dell Technologies stock once again become a strategic entry point into the global technology infrastructure sector as we look ahead to 2025?

Recent Performance and Market Context

Dell Technologies has experienced meaningful share price volatility in 2025, trading at $113.77—well off its $66.25 low and $179.70 high reached in the past 52 weeks. Notably, the stock is down ~31.5% year-to-date, following a spectacular rally in the preceding months. While this correction reflects sector-wide profit-taking and macro uncertainty, it also presents what appears to be an attractive valuation reset for a long-term, innovation-driven player.

Recent positive developments provide underpinnings for a bullish stance:

• AI Infrastructure Demand: Dell announced AI server orders exceeding $12 billion, confirming explosive demand for enterprise-grade AI solutions.
• Dell Technologies World 2025: The firm showcased its next-generation enterprise AI capabilities in partnership with NVIDIA, underpinning its role as a central pillar in the fast-growing AI ecosystem.
• Strategic Alliances: Expanded partnership with NVIDIA and the Dell AI Factory initiative signal Dell’s preparedness to lead the coming AI infrastructure cycle.

Against a constructive macroeconomic backdrop—with ongoing digital transformation, global cloud buildouts, and accelerating enterprise AI adoption—Dell appears exceptionally well-placed to capitalise on expanding technology budgets.

Technical Analysis

From a technical perspective, Dell demonstrates solid structural momentum:

• Moving Averages: The share price trades comfortably above its 200-day moving average ($109.45) and well above the 50-day handle ($93.08), generating a definitive technical buy signal.
• Momentum Indicators: The 14-day Relative Strength Index (RSI) stands at 72.44, implying short-term overbought conditions—typically a consequence of strong buying interest. Meanwhile, a positive MACD reading of 6.10 further emphasises favorable momentum.
• Key Support and Resistance: The nearest support is clustered around $112.05; resistance levels sit at $119.50, with the 52-week high at $179.70 within longer-term sights.
• Medium-Term Momentum: The stock's sustained trajectory above crucial moving averages suggests that any tactical pullbacks could constitute technically advantageous entry points for buyers anticipating further upside.

While the elevated RSI warrants monitoring for near-term retracements, the confluence of positive technical signals and robust underlying trend structure paints a compelling picture for a medium- to long-term bullish setup.

Fundamental Analysis

On the fundamental front, Dell’s story is increasingly anchored by high-visibility secular themes:

• Revenue Growth: Fiscal 2026 Q1 revenues advanced 5% year-over-year to $23.4 billion, with a robust 8-10% annualised growth pace in recent quarters—demonstrating resilience and strong demand.
• Profitability: Adjusted EPS for Q3 2025 outpaced consensus ($2.15 reported vs $2.06 expected); the most recent quarter saw an EPS of $1.55—below estimates yet reflecting reinvestment into AI leadership.
• Attractive Valuation: With a trailing P/E of 17.84 and a forward P/E of 12.21, Dell appears attractively priced, particularly relative to peers in the tech sector, some of which trade at markedly higher multiples. These metrics, coupled with a PEG ratio under 1, underscore both value and growth.
• Shareholder Returns: A 1.85% dividend yield and an annual payout of $2.10 per share provide an additional layer of appeal for total return investors.
• Structural Advantages: Dell’s brand is synonymous with reliability and innovation in enterprise hardware. Ongoing investment in AI infrastructure, strategic go-to-market partnerships, and decades of deep enterprise relationships set a solid competitive moat.

The stock’s fundamentals point to a business poised for sustained and profitable growth, with its valuation suggesting significant potential for re-rating as new AI-driven revenues accrue.

Volume and Liquidity

Though specific volume figures aren’t disclosed, Dell consistently features among the most actively traded tech equities on the NYSE. Sustained, healthy trading volumes are strong indicators of institutional confidence and ensure ample liquidity for South African and global investors alike. Moreover, a sizable public float enables dynamic price discovery and supports the formation of bullish trends, especially as new fundamental catalysts emerge.

Catalysts and Positive Outlook

Looking forward, Dell’s positioning couldn’t be timelier:

• AI Infrastructure Cycle: The unprecedented demand for AI servers and grand-scale AI model deployment is the dominant growth catalyst in technology today—and Dell is at its nexus.
• Product & Partnership Momentum: Ongoing innovation, exemplified by new launches and AI solutions in collaboration with NVIDIA, ensures that Dell stays at the cutting edge of enterprise infrastructure buildouts.
• Dell AI Factory: This end-to-end platform aims to make Dell the first stop for any enterprise AI project globally—positioning it to capture share as companies transition to decentralised, data-first AI systems.
• Favorable Guidance: Management’s current quarter guidance projects revenues of $28.5-29.5 billion, with adjusted EPS at $2.25—numbers that reflect both management confidence and the strength of end-market demand.
• ESG Commitment: Dell’s advancing environmental, social, and governance (ESG) initiatives align with the requirements of many institutional and global funds, enhancing the stock’s attractiveness within ESG mandates.

With global enterprise capex reorienting toward future-proof digital infrastructure, the outlook for Dell remains distinctly positive.

Investment Strategies

Given the above, Dell Technologies’ share price trajectory opens a range of attractive entry strategies:

• Short-Term: For tactical traders, any dips toward the $112 support zone, especially if accompanied by cooling RSI readings, could serve as favorable short-term buy points, anticipating a rebound to resistance at $119.50 and beyond.
• Medium-Term: The stock’s consolidation above its medium- and long-term moving averages, coupled with sequential financial improvements and imminent quarterly catalysts, makes a compelling case for a medium-term position. Momentum traders may target the consensus analyst price target of $126.84, with upside potential toward the recalculated target of $147.90 as new AI contracts materialise.
• Long-Term: Investors with longer-term horizons may focus on Dell’s transformation into a platform leader in the AI infrastructure cycle. Leveraging its robust dividend, defensive market share, and embedded client relationships, Dell seems well-placed for sustained compound growth. Entry at current levels, or on any tactical pullbacks near support, could yield substantial risk-adjusted returns given the company’s structural strengths and sector positioning.

Is it the Right Time to Buy Dell?

Synthesising the above, Dell Technologies exhibits all the hallmarks of an opportunity that deserves close attention. The combination of:

• Accelerating AI-driven demand,
• Ongoing strategic partnerships with industry giants,
• Solid revenue and margin expansion,
• Attractive valuation multiples compared to sector peers,
• Shareholder-friendly policies,
• And a technical setup evidencing resilient upside momentum,

creates an environment where the fundamentals justify renewed interest. In our view, Dell may well be entering a new bullish phase, with short-term technical dips representing opportunities for accumulation, and the medium- to long-term growth runway offering potential for meaningful price appreciation.

For investors in South Africa and beyond seeking differentiated exposure to the global technology supercycle—particularly at the nexus of AI, data infrastructure, and enterprise digital transformation—Dell Technologies seems to represent an excellent opportunity at a pivotal moment. With catalysts lined up over the next quarters and structural tailwinds accelerating, the conviction behind considering Dell as a compelling portfolio addition has rarely been stronger.

How to buy Dell stock in South Africa?

Buying Dell Technologies (NYSE: DELL) shares online from South Africa is a straightforward and secure process when you use a regulated broker. South African investors can benefit from user-friendly trading platforms, efficient fund transfers in ZAR or USD, and robust protections for client funds. There are two main methods to gain exposure to Dell: purchasing the shares directly (spot buying), or trading Dell share CFDs, which track price movements without owning the underlying asset. Both routes have unique features and costs, which we’ll compare below—along with a comprehensive broker comparison further down the page.

Spot Buying

When you purchase Dell shares for cash, you become a direct shareholder in Dell Technologies Inc., benefiting from both price appreciation and dividend payments. South Africans typically invest via reputable global brokers offering access to US stocks. Fees usually include a fixed commission per trade—often around $5–$10 (±R90–R180), plus possible currency conversion costs if you deposit in ZAR.

Example: Spot Buying Dell

If Dell shares trade at $113.77 each (as of May 30, 2025), a $1,000 stake allows you to buy about 8 shares ($1,000 minus a $5 fee gives $995: $995 ÷ $113.77 ≈ 8 shares).
✔️ Gain scenario:
If the share price rises by 10%, your position is now worth $1,100.
Result: +$100 gross gain, a 10% return on your investment (excluding currency effects or taxes).

Trading via CFD

CFDs (contracts for difference) allow you to speculate on Dell’s share price without owning the shares. CFD trading is popular for its flexibility—enabling short trades and leverage (using borrowed funds to increase your exposure). Instead of a commission, brokers charge a spread (the difference between buy/sell prices) and a daily overnight financing fee if holding leveraged positions.

Example: CFD Trading Dell

You open a CFD on Dell shares with a $1,000 stake and 5x leverage. Your market exposure is $5,000.
✔️ Gain scenario:
If Dell’s share price rises by 8%, your position gains 40% (8% × 5).
Result: +$400 gain on your $1,000, excluding spreads and overnight charges.

Final Advice

Before investing in Dell via either method, it’s important to compare brokers’ commissions, spreads, platform features, and currency fees, as these can impact your returns. Your choice should reflect your investment goals—spot buying suits those seeking long-term growth and dividends, while CFDs are best for active traders comfortable with leverage and higher risks. For a detailed comparison of brokers available in South Africa, please see the table further down the page. Start investing in Dell today with informed confidence and clear objectives in mind.

Our 7 tips for buying Dell stock

The latest news about Dell

Dell announced sustained momentum in AI server orders, surpassing $12 billion, driving revenue growth. In its latest quarterly results, Dell Technologies highlighted robust demand for its next-generation AI servers, a technology sector that remains highly relevant for enterprise-level transformation in South Africa. This aligns directly with the increasing regional focus on digitalization and AI-driven efficiency in both public and private sectors, positioning Dell favorably for further expansion and strategic customer wins throughout Africa. The AI server momentum, propelled by strategic partnerships, underpins a material growth catalyst for the company’s stock performance.

Dell’s revenue for Q1 Fiscal 2026 grew by 5% year-over-year, outpacing consensus expectations. Despite a shortfall versus earnings-per-share forecasts, Dell exceeded revenue projections in the latest reported quarter, signaling resilient core demand across its business lines amid global macroeconomic uncertainty. For South African institutional and retail investors, this demonstrates Dell’s operational stability and capacity to weather competitive and macro headwinds, which is particularly pertinent given volatile global technology markets and ongoing exchange rate fluctuations impacting imported technology products.

Dell strengthened its strategic partnership with NVIDIA and launched the AI Factory program, boosting its AI credentials. The recent enhancement of Dell's collaboration with NVIDIA, culminating in the unveiling of the Dell AI Factory program, sharpens its competitive edge in AI infrastructure and solutions. This initiative is well-poised to benefit enterprises in South Africa undergoing digital and AI transformation, especially within financial services, telecommunications, and the public sector—areas where Dell hardware has an established footprint. The program’s global reach and technology transfer potential can stimulate adoption in new African markets.

The Dell stock is trading above its 200-day moving average with positive technical signals, reinforcing investor confidence. Technical analysis shows Dell’s share price remains above the key 200-day moving average, signaling overall bullish momentum, despite a recent Relative Strength Index reading suggesting short-term overbought conditions. For South African portfolio managers and pension funds that track or invest in foreign equities, this persistent technical strength may support ongoing capital flows into the stock, as global investors favor sector leaders well-positioned for the AI wave.

Market sentiment remains optimistic due to Dell’s strong AI-led forecasts and robust revenue guidance for the upcoming quarter. Market analysts’ consensus points to increasing optimism around Dell, buoyed by management’s positive current-quarter revenue guidance of $28.5–29.5 billion and adjusted EPS guidance of $2.25. These targets reflect management’s confidence in capturing sustained enterprise AI demand—an opportunity also being pursued by South African corporates investing in hybrid IT infrastructure. This outlook, when coupled with Dell’s dividend yield and expanding solutions portfolio, enhances its attractiveness for South African investors seeking both capital appreciation and income from global technology exposures.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.