Dell stock eyes September record high as bullish bets grow ahead of quarter earnings

Dell Technologies Inc. (NYSE:DELL) gained more than 3% on Tuesday to trade slightly below $72. The level is a 2-month high from the record $72.16 on September 11, 2023. Dell has been rising amid expectations that recoveries in computer hardware will boost stock.

Analysts, including Credit Suisse and Evercore ISI, also expect AI to be a primary driver of Dell's fortunes. For the first half of 2023, AI accounted for 20% of Dell's server revenue. The company sees continued strengths in AI products, which helped the tech giant raise its guidance for FY23.

While Dell's price cooled after its record above $72, investors are back on the stock ahead of the earnings. The company reports Q3 2023 earnings on November 30, after market close. The consensus EPS for the quarter is $1.23. The estimate is below last year's $2.01, but investors will monitor if the company will surpass it. 

Dell has exceedingly surpassed estimates in its previous earnings. For the past two quarters, the company has reported higher-than-expected earnings by an average of 52%. For instance, the EPS came at $1.74 in the second quarter, surpassing $1.13 estimates.

The technology stock has been trading higher on expectations the company will repeat its surprise earnings. Consequently, Dell’s Earnings Expected Surprise prediction (ESP) is +1.14%. This means analysts are bullish on the earnings prospects. The stock has also attained a Zacks Rank #1, coinciding with a "strong buy" rating. Similarly, Dell has a moderate buy on Tip Rank, with an average target of $74. 

Will Dell stock rise to a new record price?

Technically, Dell is bullish near its record price. Although overbought conditions are prevalent from the RSI reading of above 70, the momentum is strong. This means the potential for the stock to shatter its previous record is high. 

However, a price correction could occur at or above the record high as the stock becomes extremely overbought. Dell has previously corrected when the RSI reading has risen to or above 80. 

Should you invest in Dell stock?

Dell stock looks poised for higher moves ahead of the quarter results. Market expectations of stock performance also boost sentiment. The stock is a hold, but the overbought conditions could deter new buyers, forcing a correction. 

Investing in Dell stock makes sense after a market correction. Positive stock market news after the quarter results could be a catalyst for further gains for the stock.