The artificial intelligence (AI) infrastructure trade has created a new standout winner in the ETF market.
While Dell Technologies Inc. (NYSE:DELL) stock has surged more than 245% year-to-date, as of Tuesday’s market close, traders using leveraged products have seen even larger gains.
• What’s going on with DELL stock?
The Direxion Daily DELL Bull 2X Shares ETF (NASDAQ:DLLL), which seeks to deliver twice the daily performance of Dell stock, skyrocketed more than 810% this year (much larger than twice), making it one of the best-performing single-stock leveraged ETFs of 2026.
To put it into perspective, a $10,000 investment in DLLL at the beginning of the year would now be worth approximately $91,000, compared with roughly $34,500 for the same investment in Dell shares.
The ETF’s explosive rally comes as Dell has emerged as one of Wall Street’s favorite AI infrastructure plays, benefiting from growing demand for AI servers, data center equipment, and enterprise hardware.
AI Demand Powers Dell’s Record Run
Dell’s latest earnings report provided fresh fuel for the rally. The company reported first-quarter revenue of $43.84 billion, well above analyst estimates of $35.45 billion. Adjusted earnings came in at $4.86 per share, handily beating the consensus forecast of $2.94.
Management also raised its fiscal 2027 outlook, citing robust demand for AI infrastructure products. The results reinforced investor confidence that Dell is becoming one of the key beneficiaries of the ongoing AI spending boom.
The stock has gained approximately 57% last week alone following the earnings release, while upbeat read-throughs from other enterprise hardware companies, including Hewlett Packard Enterprise Co (NYSE:HPE), have further strengthened the bullish case for Dell’s AI-driven growth.
Adding another catalyst, Dell recently unveiled a new XPS 13 laptop aimed at students and younger consumers. The company described it as its thinnest and lightest XPS model yet, with pricing designed to compete more directly with lower-cost offerings from Apple.
Analysts have become increasingly optimistic following Dell’s earnings beat and guidance raise.
Goldman Sachs, Mizuho and Bernstein recently raised their price targets to $500, while Morgan Stanley upgraded the stock to Equal-Weight from Underweight and boosted its target to $448.
Can the DLLL ETF Keep Climbing?
DLLL’s performance illustrates both the power and the risks of leveraged ETFs. Because the fund seeks 200% of Dell’s daily returns, gains can compound rapidly during strong uptrends. The same structure, however, can amplify losses when momentum reverses.
For instance, on Wednesday morning, the fund jumpscared investors by plummeting almost 12%.
Technical indicators suggest Dell’s rally remains strong but increasingly stretched. The stock is trading well above its major moving averages, while its relative strength index has climbed to nearly 90, a level often associated with overbought conditions.
Still, as investors continue to pour money into AI infrastructure plays, momentum traders appear willing to look past valuation concerns.
If Dell’s AI server business continues to deliver outsized growth, DLLL could remain one of the most closely watched leveraged ETFs in the market, though its path is likely to be far more volatile than that of the stock it tracks.
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