On Monday, President Trump opened the stock market from the Oval Office, flanked by Cabinet members and business leaders. He expressed gratitude to billionaires Michael and Susan Dell for their contributions to a children’s investment fund named after him.
President Trump remarked, “These are really great people. Let’s take the plunge and buy a Dell computer.” He added, “We’ll find a way to get that money back.”
Dell’s stock saw a rise of nearly 9% after the bell, closing at an increase of 4.4%. This led to discussions about whether Trump’s praise directly influenced the stock’s jump, particularly regarding Dell’s performance and their ability to supply AI data centers.
A major figure in the hardware industry suggests that Dell would have been receiving significant orders from large tech companies regardless of Trump’s remarks. A former White House ethics lawyer noted that the real concern shouldn’t be about the stock price but rather the appropriateness of a sitting president endorsing specific companies.
Questionable Patterns
Nine days before Trump urged a crowd to purchase Dell shares in February, an account in his name bought between $1 million and $5 million in Dell stock, as revealed in annual financial disclosures. Following this, there were multiple events where he praised the Dells, including a May White House luncheon and the stock market event in July.
In just three days—February 19, May 8, and July 6—Michael Dell’s assets reportedly increased by approximately $606 million, $8 billion, and $4.6 billion, respectively. These figures were based on Dell’s closing stock prices, and it’s unclear how much influence Trump’s statements had against other market factors. Currently, Dell’s net worth stands at $217 billion, making him the fifth richest person globally.
In May, the Department of Defense granted Dell a five-year contract that could be worth up to $9.7 billion, primarily to streamline Microsoft software licenses, though this value does not guarantee immediate revenue.
Dell’s Independent Success
Patrick Moorhead, chief analyst at Moor Insights & Strategy, dismissed any notion that Trump’s comments were pivotal in Dell’s rising stock prices. He indicated that the company’s success stems from its business with major tech firms.
Following an earnings report on May 29, Dell’s stock surged by 32.8%. The quarterly report indicated $24.4 billion in AI orders and $16.1 billion in AI server revenue, prompting an upward revision of the annual forecast for AI server earnings to around $60 billion.
Moorhead pointed out that Trump’s support may have influenced individual investors, but institutional ones rely on a company’s fundamentals. He humorously noted that such public statements by Trump are more of an internet joke than a genuine investment strategy.
“There’s a meme floating around that says, ‘You should have listened to Trump,'” he mentioned.
The Ethical Dilemma
Richard Painter, who served as ethics counsel under George W. Bush, argued that it’s problematic for Trump to promote any corporation, stressing that the president shouldn’t advocate for specific businesses, even unintentionally.
“It’s simply unacceptable,” Painter said. “Even if he weren’t trading the stocks, praising a company shows bias.” He emphasized that regulations have been in place for decades to prevent executive branch officials from endorsing private companies.
When asked if suggesting to “buy a Dell” crossed ethical lines, Painter acknowledged it could be interpreted as an endorsement. He reasoned that Trump’s approval could influence market behavior, as investors might assume Dell is in line for lucrative government contracts following Trump’s comments.
“Investors may think he has insider knowledge of upcoming contracts that could boost the company’s value,” Painter elaborated.
The White House defended Trump’s remarks, describing the Dells as “patriots who generously donate,” highlighting their contributions to a fund aimed at helping millions of children from working-class backgrounds.
Dell did not respond to requests for comments.
Michael Dell’s Longstanding Relationships
Before Trump’s public endorsements, Michael Dell had already recognized the benefits of engaging with U.S. presidents. He served on the President’s Council of Advisors on Science and Technology during the George W. Bush administration, and under Obama, he participated in discussions about various economic and technology policies.
While Trump’s public backing may be more pronounced, Dell’s access to past presidents was well established. Moorhead noted Dell’s longstanding relations with each administration.
Painter recalled efforts to limit corporate access during the Bush era, but pointed out that Dell’s sizable donations were positioned as philanthropic rather than political. He advocated for early financial initiatives, asserting they can significantly expand children’s future opportunities.
However, Dell’s tight relationship with Trump didn’t just start with the children’s fund. Shortly after Trump took office, Michael Dell was among the business leaders discussing the manufacturing jobs initiative with him. Even later that year, he remained part of Trump’s Manufacturing Council, despite the controversy that surrounded Trump following the Charlottesville incident.
