Dell Stock Down 4% Last Week After Morgan Stanley Downgrades IT Hardware Sector

Key Stats for DELL Stock

• Past-Week Performance: –4%
• 52-Week Range: $168 to $66
• Valuation Model Target Price: $149
• Implied Upside: 27% over 2 years

Test whether Dell stock’s pullback already reflects slower hardware budgets and rising memory costs by running the numbers on TIKR for free →

What Happened to Dell Stock?

Dell Technologies Inc. (DELL) fell 4% during the third week of January, trading lower within a broad range amid heightened volatility across U.S. IT hardware stocks.

Last week, Reuters highlighted Morgan Stanley’s hardware sector downgrade, citing slowing enterprise demand and rising memory component costs last week.

Analysts projected 1% hardware budget growth in 2026 and flagged PC market contraction and potential price hikes by Dell.

Meanwhile, markets emphasized sector-wide demand pressure and input cost inflation, limiting stock differentiation despite no company-specific earnings updates.

However, Dell disclosed no changes to guidance, strategy, or demand outlook amid macro and sector-driven trading conditions.

Measure how sensitive Dell stock’s valuation is to enterprise demand assumptions after the sector downgrade using TIKR’s model for free →

Is Dell Stock Fairly Valued Right Now?

Under the valuation model shown, the stock is modeled using:

• Revenue Growth: 11.6%
• Operating Margins: 8.6%
• Exit P/E Multiple: 10.1x

Under the 2028 valuation model, Dell stock outcomes depend on revenue growth, margins, and valuation assumptions holding.

Specifically, the model assumes 11.6% revenue growth, 8.6% operating margins, and a 10.1x exit earnings multiple.

Based on these inputs, the model estimates a $149.44 target price, implying 27.4% total upside and 12.8% annualized returns.

Execution depends on enterprise demand stability, pricing discipline, and margin resilience across PCs, servers, and infrastructure.

As a result, Dell stock’s valuation reflects execution and cycle risk, leaving returns sensitive to demand normalization rather than valuation expansion alone.

Evaluate what Dell stock’s current price implies for returns if hardware spending remains constrained in 2026 on TIKR for free →

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