Dell Technologies Inc. (DELL): A Bull Case Theory

We came across a bullish thesis on Dell Technologies Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on DELL. Dell Technologies Inc.'s share was trading at $118.49 as of January 29th. DELL’s trailing and forward P/E were 15.68 and 9.90 respectively according to Yahoo Finance.

Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The author's trade involves selling 500 contracts of Dell Technologies’ January 2028 $100 put options while the stock trades around $130, reflecting a bullish-to-neutral, high-conviction stance on the company’s long-term fundamentals. By choosing a strike price roughly 23% below the current market level, the investor is effectively being paid upfront to insure against a deep decline in Dell’s share price, while allowing ample room for short-term volatility.

As long as Dell remains above $100 through expiration, the options expire worthless and the full premium is retained, making this a margin-of-safety–driven strategy designed to profit even if the stock stagnates or pulls back meaningfully. The structure mirrors a disciplined value-investing approach, where the investor is comfortable owning Dell at a substantially lower valuation than today. If the stock were to fall below $100 in 2028, the seller would be obligated to purchase shares at that level, but the collected premium lowers the effective cost basis by roughly $17 per share, turning a potential downturn into an opportunistic entry point rather than a failure of the thesis.

The confidence behind the trade is rooted in Dell’s positioning within the AI infrastructure buildout, particularly its strength in AI-optimized servers and storage, alongside its established PC and enterprise hardware businesses, which together are viewed as creating a durable floor under the stock. Instead of relying on Dell’s modest dividend yield, the investor monetizes conviction immediately through option income, generating an attractive yield without requiring price appreciation.

The primary risk lies in a severe, company-specific or macroeconomic shock that drives the stock far below $100, requiring significant capital to absorb losses. Overall, the trade signals that Dell is seen as a mature, cash-generative business unlikely to experience a catastrophic repricing, offering a favorable risk-reward skew through patient, income-focused positioning.

Previously we covered a bullish thesis on Dell Technologies Inc. (DELL) by Magnus Ofstad in March 2025, which highlighted strong fiscal performance, AI-driven server growth, and disciplined capital allocation. The company's stock price has appreciated approximately by 29.55% since our coverage. This is because the thesis played out. The thesis still stands as DELL remains a cash-generative business. OppCost shares a similar but emphasizes a high-conviction, options-based strategy generating income while maintaining long-term exposure.

Dell Technologies Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held DELL at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the risk and potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DELL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.