Dell (DELL) was added as a new short idea at Hedgeye with the potential for downside to $100 a share.
“Memory inflation raises BOM just as DELL pushes PC price increases into a weak demand environment,” Hedgeye analyst Felix Wang wrote in a note on Tuesday. “AI PC” optimism is not supported by real-world sentiment, raising downside risk to volumes and margins.”
“NVIDIA’s accelerating vertical integration (VR200, NVL 576, Ultra) threatens OEM disintermediation,” Wang added. “If neocloud demand slows, DELL’s AI backlog likely represents a near-term peak.”
Consensus margins appear to be unrealistic, according to Wang. .
Dell (DELL) is likely to miss multiple October 2025 Investor Day targets, Wang wrote. EPS stagnation this year would drive multiple compression, implying fair value around $100.
Dell ticked lower by 0.6%. Shares of Dell have risen 9% over the past year.