Michael Dell, founder and CEO of Dell Technologies, has made his second significant share sale in September, unloading 10 million shares of the company for $1.22 billion, according to regulatory filings.
This follows an earlier divestment, where he sold a similar volume of stock, netting $1.17 billion in a series of transactions between September 19 and 23.
In total, Dell has sold over $2.3 billion worth of shares in the past month.
These transactions come at a time of notable market performance for Dell Technologies, whose stock has surged 55% this year. The company’s strong performance has been primarily driven by increased demand for its high-performance servers, which have seen a boost from rising interest in artificial intelligence (AI) infrastructure-Bloomberg first reported.
Investor enthusiasm for AI has helped push Dell Technologies back into the S&P 500, an index it rejoined just last week after being absent for a decade. The firm’s ability to capitalize on this AI-driven momentum is positioning it strongly within the tech sector, particularly in its enterprise hardware segment.
Dell remains a major stakeholder in his namesake company, holding about half of Dell Technologies’ shares, including shares held in a trust by his wife.
Despite these significant sales, Dell’s stake in the company still anchors his vast personal fortune, which has grown substantially alongside the company’s market success. According to the Bloomberg Billionaires Index, Dell’s net worth currently stands at over $111 billion, making him the 13th richest person in the world. His wealth has increased by more than $33 billion this year, largely driven by the rise in Dell Technologies’ share price. Additionally, Dell derives a portion of his wealth from holdings in Broadcom Inc., a semiconductor and infrastructure software company.
What to know
The timing of these sales has raised interest among market observers, particularly given the broader AI-driven rally that has benefited tech companies this year. While Dell has not provided a direct explanation for the sales, the move could be interpreted as part of a broader portfolio strategy. A representative from Dell’s family investment office declined to comment on the transactions.
Despite the company’s robust market performance, Dell Technologies has not been immune to broader industry challenges. In August, the company cut jobs within its sales team, and it has since announced plans to continue reducing its workforce to address margin pressures. At the same time, Dell ordered its remaining salesforce back to the office five days a week, a decision that reflects broader trends of returning to in-person work within the tech sector.
FT View: Michael Dell’s recent stock sales come at a time of significant strength for Dell Technologies, highlighting the company’s strong position in the growing AI market. However, ongoing workforce reductions suggest the company is taking a cautious approach as it navigates evolving market conditions. The sale also raises questions about Dell’s future strategic moves, especially as the company seeks to maintain momentum in the face of economic uncertainty.
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