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Dell Technologies is about to sit at the same table as Apple, Microsoft, and Nvidia.

The company will join the S&P 100 index on Sept. 21, 2026, according to S&P Dow Jones Indices. 

Dell (DELL) stock has climbed roughly 700% over the past three years, which puts the hardware giant squarely in the same conversation as the market’s biggest names.

The same rebalancing also adds Palo Alto Networks, Arista Networks, and SanDisk, while removing Nike, Simon Property Group, and Colgate-Palmolive.

Why Dell stock is on an absolute tear

Dell’s surge is not random. It is tied directly to demand for AI infrastructure, the servers, storage, and networking gear that power artificial intelligence.

In fiscal Q2 of 2027 (ended in July), Dell reported revenue of $47 billion, an increase of 58% year over year. Meanwhile, earnings per share more than tripled year over year to $7.04. 

The Infrastructure Solutions Group, which includes AI servers, storage, and networking, posted revenue of $31.8 billion, up 89%. 

Related: Analyst resets Dell stock price target after earnings

Dell booked $60.9 billion in AI orders during Q2, a fresh record, and ended the period with a $95 billion AI server backlog.

Here is a quick snapshot of what pushed those numbers higher:

AI server orders topped $131.7 billion over the past 12 months.

Traditional server revenue jumped 122% as companies replace aging equipment.

Storage revenue grew 26%, its sixth straight quarter of demand growth above the market.

PC revenue in Dell’s Client Solutions Group rose 20%, its fastest pace in five years.

Operating expenses fell to about 8% of revenue, the lowest level in the company’s 42-year history.

CEO Michael Dell addressed the durability of that demand directly at the Goldman Sachs Communacopia and Technology Conference on Sept. 9. He pointed to a structural gap between AI chip supply and what companies need.

“All of the improvements in the models, particularly from basic LLMs to reasoning to agents, has occurred well within the timeframe required to build a new semiconductor fab,” Dell said. “You just have a structural shortage, probably worse in 2027 than in 2026 from everything that we see.”

Dell CEO Michael Dell is bullish on AI demand.Bloomberg / Getty Images

What the S&P 100 addition means for Dell stock

Getting added to the S&P 100 is not just a symbolic honor. The inclusion forces index funds and institutional portfolios that track the benchmark to buy shares, adding a fresh layer of short-term demand.

The S&P 100 is a subset of the broader S&P 500, made up of the 100 largest and most established companies by market value.

Membership signals that a stock has grown large and stable enough to be treated as a core holding rather than a speculative bet.

For Dell, the timing lines up with a business that is scaling fast.

The company raised its full-year revenue guidance by $25 billion, to $192 billion, and now expects AI server revenue to triple year over year to $74 billion. Full-year earnings per share guidance sits at $25.50, up roughly 150%.

Chief Financial Officer David Kennedy told analysts on the Sept. 1 earnings call that the company generated $8.1 billion in adjusted free cash flow during the quarter and returned an all-time record $4.3 billion to shareholders, including share buybacks at an average price of $401 per share.

What’s next for Dell stock price target 

Dell’s leadership sees a long runway ahead.

COO Jeff Clarke told investors the firm expects the AI infrastructure market to be worth more than a trillion dollars by 2030, with AI making up 75% of all data center demand by then.

Clarke also pointed to a massive installed base of aging equipment still waiting to be replaced.

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Dell said 1.2 million servers in its customer base are still running on 14th generation hardware or older, a backlog of upgrades that should keep demand strong well beyond this year.

Michael Dell echoed that view, describing the company as still early in a broader shift where businesses reorganize around AI rather than simply buying faster computers.

“I would say we’re really at the very beginning of that in most companies,” Dell said. “They don’t know how to do it. It’s hard.”

Whether Dell stock keeps climbing at its recent pace is a separate question from the S&P 100 news. 

But the index addition confirms what the stock’s run already suggested. Wall Street now views Dell as core infrastructure for the AI economy. 

Out of the 21 analysts covering Dell stock, 14 recommend “Buy,” and seven recommend “Hold.” The average DELL stock price target is $595, above the current price of $535.

Related: Goldman Sachs resets Dell stock price target by $60

“In this environment you can’t just meet” expectations, an analyst says

President Donald Trump’s vow to hand out $5,000 checks if Republicans hold on to control of both chambers of Congress in the midterm elections raises an immediate question: Can he really do that?
Trump announced his idea to send payments to “every adult” in a speech Wednesday at the Republican National Committee’s midterm convention in Dallas.

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“Here is my promise,” he said. “If the Republicans win the House of Representatives and the United States Senate, both of them … because of our tremendous strength and success economically, I will issue a dividend to every adult citizen in the United States of America for $5,000, very much like a successful company will do a cash distribution to its shareholders.”
The proposal would only have one other “caveat,” Trump said, which is that the money must be spent in the U.S.
As of Thursday afternoon, the administration hadn’t shared details about how the funds would be distributed with this restriction. But there are several reasons to be skeptical that any money is coming your way.
Since the three rounds of pandemic-era stimulus checks, promises from politicians — namely Trump — to send direct payments to Americans have mostly gone unfulfilled. About 1.5 million members of the military received $1,776 “Warrior Dividends” last year, but remember those $5,000 DOGE checks floated in February 2025? They never materialized.
This time around may not be any different.
First, in order for the president to pursue these proposed payouts (per his terms), Republicans would have to dominate the midterms. The odds of a Republican House and a Republican Senate emerging from November’s elections are only 14% on Polymarket and 16% on Kalshi, the two leading prediction markets.
Trump acknowledged that his party has its work cut out for it as he announced the plan for “Trump dividends.”
“We might not win,” he said. “You win with us, and you get $5,000.” Later in the speech, he sounded more optimistic, saying, “We’re going to give you that Trump dividend of $5,000 if we win — and we’re going to win.”
However, even assuming the GOP retains majorities in both chambers, it’s still unlikely you’ll receive a $5,000 payout.
The main issue is a lack of enthusiasm among Republicans in Congress for more stimulus checks. Broadly speaking, fiscal conservatives do not want to add to the $40 trillion national debt with direct payments, and the price tag for these checks would be about $1 trillion. A precise cost cannot be estimated as the administration hasn’t shared information about a potential exclusion for the wealthy, as mentioned by Vice President JD Vance.

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Will Congress approve $5,000 ‘Trump dividends’?
The Constitution gives Congress the power of the purse, which means sending $5,000 checks would require House and Senate approval.
DOGE checks and previously proposed tariff checks never advanced in large part because GOP congressional leaders like Speaker Mike Johnson, R-La., opposed them, as did some rank-and-file Republicans and essentially all Democrats. Hoping for a different outcome this time, Sen. Bernie Moreno, R-Ohio, said that he will introduce a bill to try to deliver Trump’s $5,000 checks.
Democrats blasted the plan as unlawful and financially reckless.
“Actually, only Congress can make that promise since it must appropriate those funds. And Congress would never do it because it is corrupt and blatantly illegal,” Rep. Daniel Goldman, D-N.Y., wrote in a response on X.
California Gov. Gavin Newsom accused Trump of trying to “buy your vote,” while economist Peter Schiff called the move a “bribe.”
Fox News’ Bret Baier asked Vance in an interview after Trump’s speech how he responds to criticism from opponents that the president is “bribing voters to vote for Republicans” and risking more inflation. In response, Vance suggested the checks could be paid for with revenue from the Trump administration’s tariffs.
“If you keep us in power,” he said, “then you’re going to share in some of the benefit of this incredible wealth that we’re creating.”
Still, U.S. code states that it’s against the law “to make an expenditure to any person, either to vote or withhold his vote, or to vote for or against any candidate.” It’s unclear how courts might view the unprecedented $5,000 dividend proposal that Trump has announced if legal challenges arise.

Republican strategist and Executive Director of Principles First Brittany Martinez joined “Forbes Newsroom” to discuss the GOP’s first-ever midterm convention.

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While I buy most of my clothes from Amazon, when I needed a new wardrobe for a video shoot, my wife and I went on a tour of local retailers.

Since I needed shirts that would hold up well in hot weather, we went to Target and Bass Pro Shops, and as much as I don’t like trying clothes on, I took advantage of the stores’ dressing rooms.

I’m not alone in wanting to try things on before I buy.

“The opportunity to try on clothes and test products is a major driver of store traffic,with 52% of consumers surveyed saying they go to stores instead of shopping online because of this. References to trying on/testing products surged 32% YoY on average at retailers and were up 58% at beauty retailers,” according to a Chatmeter report published last year.

People, me included, like seeing what they’re buying before committing to a purchase.

“When asked about their favorite part of a recent store visit, 21% mentioned trying aproduct while 25% mentioned seeing a product in real life,” the data showed.

Once I picked out the shirt I liked, I bought a few from the store, went back a week later to buy more, but then ordered more colors online. And since we no longer live near Bass Pro Shops, I’ll likely become an online customer.

That’s the problem facing retailers like Torrid. Physical stores deliver a better experience, because they introduce customers to merchandise and allow them to leave the store with their size. But if customers buy in-store once and then order online, that dramatically changes the economics for brick-and-mortar locations.

That’s at least part of the struggle for Torrid, a women’s specialty retailer featuring plus-sized clothes, which has closed 20% of its stores.

Torrid has shrunk its store base

In June 2025, Torrid shared a plan to close around 180 underperforming stores from its fleet of just over 620.

Torrid CEO Lisa Harper shared her company’s plan in its first-quarter earnings release.

“Digital continues to be our customers’ preferred channel, now approaching 70% of total demand. We’re accelerating our transformation to a more digitally-led business, which includes optimizing our retail footprint,” she said.

Harper then got specific about the planned shutdowns.

“We now plan to close up to 180 underperforming stores this year — allowing us to reduce fixed costs and reinvest in areas that drive long-term growth, including customer acquisition and omnichannel enhancements,” she added.

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Those closures have rolled out slowly, but are now mostly complete, and the company’s challenge is keeping the sales those stores generated.

“As I mentioned on our Q1 call, we substantially completed our store optimization program. To date, we’ve closed an additional six structurally unproductive locations, bringing the total to 177 closures since we initiated the program. Customer retention through this transition has remained strong, with our marketing efforts successfully redirecting traffic both online and to nearby stores,” she said during the company’s second-quarter earnings call.

Torrid has closed about 20% of its retail stores.Shutterstock

Torrid has seen mixed results

Harper tried to sell Torrid’s Q2 results as the company delivering on its plans.

“Our second quarter results were in line with guidance. Sales trends improved meaningfully as the quarter progressed, with July marking a clear inflection point. This improvement reflects early traction from our customer growth strategy and the merchandising course corrections we have made,” she said in a press release.

The results showed that while sales were down, margins and profits improved, suggesting the store closures are helping the company’s bottom line.

Net sales decreased 11.8% to $231.7 million compared to $262.8 million for the second quarter of last year.

Comparable sales decreased 6.3% in the second quarter.

Gross profit margin increased to 38.7% compared to 35.6% in the second quarter of last year.

Gross profit margin, excluding the benefit of tariff refunds received, was 33.9%

Net income was up to $5.2 million, or $0.05 per share, compared to net income of $1.6 million, or $0.02 per share, in the second quarter of last year.

“Torrid shedding a huge chunk of its stores is a brutal, necessary acknowledgment that physical stores were becoming a drag on their bottom line. When over 70% of your sales are happening online, maintaining hundreds of low-productivity mall leases is just burning cash,” RTM Nexus CEO Dominick Miserandino told TheStreet.

He thinks the chain matches the needs of its customer base.

“These are Plus-size specialty shops which rely heavily on deep customer loyalty, and Torrid already retains the majority of those shoppers digitally whenever a local store closes. Trimming underperforming physical locations lets them cut massive real estate overhead and pour capital back into e-commerce, digital marketing, and product,” he added.

Torrid serves a growing market

Torrid describes itself as a direct-to-consumer apparel, intimates, and accessories brand in North America for women sizes 10 to 30.

The plus-size women’s clothing market has been steadily growing.

“Plus-size clothing for women market revenue was valued at $23.6 billion in 2024 and is estimated to reach $37.4 billion by 2033, growing at a CAGR of 6.5% from 2026 to 2033,” according to data from Verified Market Reports.

CAGR, or compound annual growth rate, shows that the market will be expanding.

The report also shared some other key facts about the growing women’s plus-sized fashion market.

E‑commerce channels are growing at the fastest pace, comprising more than 60% of sales and outpacing traditional brick‑and‑mortar outlets.

North America currently dominates the market, accounting for more than 35% of total revenue, with Europe and Asia Pacific following closely.

The shift to online sales has been noticeable, even as more traditional retailers, including Target, have broadened their in-store selections to be more size-inclusive.

Over a year ago, when the shutdowns were announced, GlobalData Managing Director Neil Saunders shared his support for the chain’s actions.

“The closures are largely sensible, since they will free up capital to invest in things like better marketing and product development,” Saunders told NewJersey.com. “Money will also go into stores that are showing potential.”

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Over the last few years, Starbucks made several operational moves that frustrated its core customers. To cut operational delays and improve profit margins, the chain has repeatedly overhauled its offerings, pricing, and rewards program. 

About three years ago, Starbucks increased the number of loyalty “stars” required to redeem free drinks, food, and merchandise, and it also angered iced-drink fans by introducing a mandatory $1 charge for customers who ordered Refreshers with “no water,” according to Entrepreneur.

In 2023 and 2024, Starbucks spent heavily to promote olive-oil-infused coffee, a pet project of former CEO Howard Schultz. The drinks sparked viral mockery and widespread complaints about stomach issues before the company finally abandoned the lineup in late 2024 to simplify its menu, reported CNN. 

Earlier this year, Starbucks made major menu cuts, under CEO Brian Niccol’s “Back to Starbucks” turnaround strategy, slashing its menu by 25% to 30%. The chain cut 13 drinks to reduce waste and speed up drink preparation for baristas, reported TheStreet. 

Now, the chain’s latest menu change has once again frustrated some of its loyal customers, and they are calling headquarters to complain. 

Starbucks reinvents iconic chai recipe 

In March 2026, Starbucks revealed a change to its chai latte recipe, saying it was “reinventing an icon.”

The chain said the overhaul will make it a less sweet chai base to allow customers to customize the beverage to their own preference. 

“The updated chai recipe allows spices like cardamom, cinnamon and ginger to take center stage while giving customers more control over their preferred sweetness level by adjusting the number of pumps. Or they can adjust the flavor by swapping classic syrup for a flavored one. Vanilla, for example, will dial up the spicy notes. The beverage is also delicious unsweetened,” Starbuck stated. 

The change, however, didn’t sit well with some customers. 

Starbucks tweaked its iconic chai recipe, angering some customers.NicolasMcComber / Getty Images

Starbucks’ chai change angers some customers 

A number of customers took to social media, or called corporate and signed petitions to reverse what they are calling the “Great Chai Incident of 2026,” highlighted The Wall Street Journal. 

Ricki Fairley, a 70-year-old customer, sent a formal complaint to Starbucks’ CEO demanding that the company “turn this unnecessary mess around.” 

Another loyal customer, Adam Benson, mourned the loss of his usual order, stating, “I had found my drink, my happy place. Now it’s been taken away.”

Desperate fans have even started swapping recipes on platforms like Reddit to figure out how to replicate the original taste. Baristas are doing their best to help, but finding the exact match is proving difficult. One Reddit user shared their best workaround, posting, “The closest I’ve been able to get to bringing its sparkle back has been no classic, half vanilla, half cinnamon dolce.”

Facing backlash, Starbucks tweaked the recipe again about a month later, removing water from the hot chai to make it creamier and spicier. Still, for many loyal tea drinkers, the magic is gone, and they have resorted to making it at home. 

A number of customers suspect the change aimed only to reduce costs, since adding flavors such as vanilla or brown sugar costs an extra 80 cents. 

“They may have cut costs but they’ve lost me as a customer. For the past 20 years I’ve gotten a Starbucks chai almost every single day, and I’ve been back 3 times now since March,” wrote one Reddit user. 

Not everyone is displeased with the change, however. 

Some customers actually like the new chai better 

In matters of taste, there can be no disputes, the old saying goes, and it holds true in this case. 

In another Reddit thread (though one that got significantly fewer reactions), a few customers shared that they prefer the new chai. 

“All the customers I’ve talked to today love the change,” the Reddit user who started the thread shared. 

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What’s particularly interesting is the comment posted by a user identifying as a Starbucks barista who said that what seems to be happening is that customers who didn’t like the chai before now think it’s good, while those who liked it previously don’t like it now. 

The user added that there’s “definitely a higher percentage of people that dislike it.” 

It appears that this latest Starbucks change has managed to gain some new chai fans, but at the same time, it has lost a number of old ones.

Why product changes trigger deep customer anger

When an iconic brand changes a popular product, it can disrupt a daily emotional ritual, and the effect on customers can be overwhelming. Market research shows that consumers don’t buy a beverage just for its ingredients. They buy it for psychological comfort and predictability. 

When that changes without warning, customers may register it as a betrayal.

“Brands are key in building customer-brand relationships, yet organisations change their product lines by reformulating or discontinuing brands. This results in negative customer emotions, including pain and grief,” according to a study on product changes published in the Journal of Business Research. 

In 1985, Coca-Cola discontinued its original formula and introduced a sweeter “New Coke” after blind taste tests showed consumers preferred the new flavor over both the original recipe and Pepsi. 

However, the company drastically underestimated the emotional attachment its loyal customers had to the classic beverage. Following severe public backlash, Coca-Cola brought back the original formula just 79 days later, according to History.com.

Coca-Cola went back to its original recipe to retain its customers. Whether Starbucks follows suit may depend on how much the chai backlash ends up hurting its bottom line. 

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