What Happened?

Shares of computer hardware and IT solutions company Dell (NYSE: DELL) fell 4.2% in the morning session after the company admitted at the CES 2026 tech conference that its push for artificial intelligence in personal computers was not resonating with customers. 

Dell's head of product, Kevin Terwilliger, stated that consumers were "not buying based on AI" and that the marketing message likely confused them more than it helped. This blunt assessment from company leadership at a major industry event cast doubt on a key part of its recent strategy. The investor reaction suggested concern over the company's product direction. This negative sentiment overshadowed Dell's simultaneous announcements of new products, including an expanded portfolio of laptops and advanced monitors.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Dell? Access our full analysis report here.

What Is The Market Telling Us

Dell’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 22 days ago when the stock dropped 4% on the news that the company announced price increases for its commercial PCs, sparking worries about the potential impact on customer demand. The price hikes were reportedly driven by a shortage of memory components, with some estimates suggesting increases of up to 30%. This development led to unease among investors about the affordability for business customers and its potential effect on sales. The selling pressure also followed a recent dip in the stock's price after news of insider selling by a director, which added to the negative sentiment surrounding the company's shares.

Dell is down 9% since the beginning of the year, and at $116.27 per share, it is trading 29.5% below its 52-week high of $164.88 from October 2025. Investors who bought $1,000 worth of Dell’s shares 5 years ago would now be looking at an investment worth $1,506.

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