On Wednesday, a social media account known for tracking political and market developments linked President Donald Trump’s recent praise of Dell Technologies (NYSE:DELL) to the company’s newly announced multibillion-dollar Pentagon contract.
Tracker Connects Trump Comments To Dell Pentagon Contract
The Nancy Pelosi Stock Tracker account posted on X: “This is why we do it… Dell was just awarded a 5-year, $9.7B contract with the Pentagon to provide software across the U.S. military Not even 3 weeks after President Trump talked positively about $DELL.”
The post came after the Department of Defense announced that Dell Federal Systems secured a five-year contract valued at roughly $9.7 billion to provide software services and licensing support across the U.S. military.
What Dell’s $9.7 Billion Pentagon Deal Includes
The agreement, formally called the Microsoft Corp’s (NASDAQ:MSFT) Department of War Enterprise Software Agreement II Core Enterprise Technology Agreement, covers Microsoft 365 products, advanced cloud subscriptions and on-premises licensing capabilities.
Dell Federal Systems, the company’s government-focused business unit, won the award following a competitive process, according to Pentagon officials speaking at a Wednesday briefing.
Why Trump’s Earlier Praise Of Dell Is Drawing Attention
The timing of the contract announcement drew attention because Trump publicly praised Dell earlier this month during a White House event.
“Go out and buy a Dell,” Trump said while applauding the Dell family’s support for the initiative.
This also follows a pledge by Michael Dell last year to contribute $6.25 billion toward funding investment accounts for children referred to as “Trump accounts.”
Dell and the White House did not immediately respond to Benzinga’s request for comments.
Dell is scheduled to report its first-quarter financial results on Thursday after the market closes.
Trump’s Corporate Praise Fuels Debate
President Trump has increasingly spotlighted individual companies, with recent ethics filings showing he bought stakes in at least two firms before publicly praising them or benefiting from favorable policy developments.
A government stake in Intel Corporation (NASDAQ:INTC) helped lift the stock this year, with the White House saying its $8.9 billion position had grown beyond $50 billion as of May 18.
Trump later called Micron Technology (NASDAQ:MU) “great” on May 22. By May 26, the chipmaker’s shares closed near $896 and its market cap surpassed $1 trillion for the first time, helped by a UBS price target hike from $535 to $1,625.
Price Action: Dell shares closed Wednesday at $305.32, up 0.08% and rose 4.15% in after-hours trading to $318. The stock has gained 48.26% over the past month and is up 138.90% year to date, according to Benzinga Pro.
Benzinga Edge Stock Rankings place DELL in the 97th percentile for Momentum, with the stock maintaining bullish trends across short, medium and long-term time frames.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Asatur Yesayants on Shutterstock.com
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