Dell Technologies(US:DELL) Benzinga·2025-12-18 21:30Core Insights - Artificial intelligence (AI) has become a significant force in the business ecosystem, but Dell Technologies Inc (NYSE:DELL) is viewed as a negative outlier in this context [1] - Dell is focusing on AI infrastructure, including machine-intelligence-optimized servers and storage solutions, but this segment is perceived as unenticing by investors [2][3] Company Performance - DELL stock has gained just over 7% since the beginning of the year, underperforming compared to the S&P 500 index, which has increased by more than 15% [3] - Technical analysts suggest that DELL may be forming a head-and-shoulders pattern, indicating potential downward movement due to failed demand [3][5] Technical Analysis - The head-and-shoulders pattern is seen as a one-off event for DELL, and its implications are uncertain based on historical data from other stocks [7] - A more reliable analysis would involve studying DELL's own price action rather than comparing it to other securities [8] Price Projections - Forward 10-week returns for DELL stock are projected to be between $120 and $132, with price clustering likely around $128.30 [11] - Current quantitative signals suggest a shift in forward returns to between $120 and $137.50, with clustering just below $130 [12] Options Strategies - Two options strategies are proposed: a 125/130 bull call spread with a maximum payout of over 122% and a 130/135 bull spread with a maximum payout of over 170% [14][15] - The 130/135 spread is attractive due to the significant probability decay beyond $135, making it a compelling option for speculators [17][18]