How Dell Stock is Defying the Tech Sector Selloff

Core Insights - Dell Technologies Inc's stock increased by 17% to $142.32 following strong fourth-quarter earnings and revenue that surpassed analyst expectations, with adjusted earnings at $3.89 per share and revenue at $33.38 billion [1] - The company's fiscal guidance for 2027 has more than doubled, driven primarily by AI server revenue amid growing data center demand [1] Stock Performance - Seven brokerages have raised their price targets for Dell, with Raymond James providing the highest increase from $166 to $182 [2] - The stock is breaking out of consolidation and is now 31% higher year-over-year, aiming for its highest close since November 10 [2] Short Interest and Trading Dynamics - Short interest in Dell has risen by nearly 6%, with 27.45 million shares sold short, accounting for 8.9% of the total available float, indicating potential for a short squeeze [3] - At the current trading pace, it would take shorts almost four trading days to cover their positions [3] Options Market Activity - Options traders have shown bearish sentiment, with a 10-day put/call volume ratio of 1.22, ranking higher than 92% of readings from the past year [4] - The stock's Schaeffer's put/call open interest ratio (SOIR) of 1.16 is in the 88th percentile of its annual range, suggesting that unwinding these bearish bets could provide additional support [4] Shift in Options Trading - There has been a notable shift towards call options, with 53,000 calls traded in the first hour, which is 11 times the average intraday amount and nearly double the number of puts [5] - The most popular option is the weekly 2/27 130-strike call [5]