Michael Dell, the founder and CEO of Dell Technologies Inc., has embarked on a significant share-selling spree in his computer company for the first time in nearly three years.
This move comes as Dell’s stock experiences a surge driven by optimism surrounding artificial intelligence (AI).
Since March 6, Dell has been consistently offloading shares almost daily, amounting to the sale of over 4 million shares valued at about $465 million, according to Bloomberg estimations.
Despite these sales, Dell still retains a 50% ownership stake in the Texas-based company, which remains the largest asset contributing to his massive fortune of $94.2 billion.
The surge in Dell’s stock price occurred on March 1, with a remarkable 32% spike to reach an all-time high. This increase was driven by the company’s robust financial performance, characterized by sales and profit figures that surpassed analysts’ expectations.
The increasing demand for technology capable of supporting AI applications has been a significant driver behind Dell’s recent success. As of Monday’s close, the stock had risen by an impressive 40% since the beginning of the year.
What you should know
Michael Dell, now 59 years old, founded his company in 1984 while he was a student at the University of Texas at Austin. Apart from his significant involvement in Dell Technologies, much of Dell’s wealth is tied to his private investment firm, DFO Management. This firm holds stakes in various sectors, including hotels, and focuses on investments in liquid corporate credit.
In 2017, Dell demonstrated his philanthropic commitment by donating a staggering $1 billion to his foundation. The foundation primarily addresses child poverty issues and employs a dual approach of impact investing and charitable donations to effect positive change.
Dell’s recent decision to sell shares in Dell Technologies aligns him with a growing cohort of tech billionaires who are divesting stakes in their respective companies. Among these figures are Mark Zuckerberg of Meta Platforms Inc., Jeff Bezos of Amazon.com Inc., and Peter Thiel, signalling a broader trend within the tech industry.
