Dell's stock gets another Trump bump - but this time it's fading

By Britney Nguyen

The president recommended that people buy Dell computers while speaking about the launch of 'Trump accounts' on Monday

President Donald Trump again said to "go out and buy a Dell computer" during remarks on Monday.

Dell Technologies' stock got another bump from President Donald Trump on Monday as he spoke about the launch of a new type of investment account for children.

Shares of the electronics maker (DELL) closed up 4.4% on Monday, but they had risen as much as 8.9% earlier in the session, according to Dow Jones Market Data. That came after the president thanked company founder Michael Dell for his investment in "Trump accounts" and advised people to "go out and buy a Dell computer."

Dell and his wife, Susan, announced a donation in December of $6.25 billion that will put $250 into 25 million accounts for children ages 10 and under.

Now read: Trump rings Wall Street opening bells and says the stock market 'is going to go through the roof'

Trump also had touted the company's computers during remarks in February, when he thanked the Dells for their contributions.

"They make a great product," Trump said during a speech on the economy in Rome, Ga., according to a transcript. "They're not looking for any publicity. I give them publicity."

The company's stock rose about 2% following Trump's remarks in February and jumped more than 13% on May 8, after Trump said people should "go out and buy a Dell" during a Mother's Day event at the White House.

Later that month, the Defense Department announced a $9.7 billion blanket purchase agreement with Dell subsidiary Dell Federal Systems to "enable customers to procure Microsoft software licenses, cloud subscriptions and Software Assurance."

The deal raised concerns following a disclosure of Trump's investments that showed the president owns more than $1 million worth of Dell stock, the New York Times reported at the time.

Neither Dell nor the White House immediately responded to MarketWatch's request for comment.

Dell's stock is up about 221% so far this year - although that's not entirely due to Trump's touting of the company.

The company has benefited from artificial-intelligence-driven demand for data-center servers, and it said in its earnings report in May that it saw record cash generation in the April quarter that allowed it to deliver strong returns to shareholders.

Dell Chief Operating Officer Jeff Clarke said on the company's earnings call that "demand was stronger than we anticipated across all lines of businesses and geographies."

The server maker reported $24.4 billion in AI orders for the quarter, with AI server revenue soaring 757% from the previous year to $16.1 billion. Dell's AI backlog stood at $51.3 billion at the end of the first quarter.

Clarke said the company's decision to raise its guidance for AI server revenue to $60 billion for fiscal 2027 "goes to show the AI opportunity shows no signs of slowing."

Don't miss: Your 5 biggest questions about 'Trump accounts,' answered

-Britney Nguyen

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07-06-26 1614ET