Former chief White House ethics lawyer Richard Painter criticized President Donald Trump‘s trading of Dell Technologies Inc. (NYSE:DELL) stock as "egregious." However, he added that even without the stock trade, publicly praising a specific company would violate federal ethics standards for executive branch employees.
Painter, who worked under George W. Bush, told Fortune, "The baseline rule is, even if the president is not trading, there should never be an endorsement of a particular company," Painter said, adding he would have strongly objected if a similar situation had occurred during Bush’s presidency.
Painter argued that Trump’s suggestion to "go out and buy a Dell computer" qualifies as an endorsement, which is a violation of federal standards of conduct for executive branch employees.
He said such remarks could influence markets because investors may assume Trump knows about potential government contracts or other developments that could boost Dell Technologies’ value, prompting them to trade based on that expectation.
Shares Surge After Trump Nod
Dell Technologies shares surged as much as 9% on Monday after Trump promoted the company during a White House event, telling people to “Go out and buy a Dell computer.”
Trump praised Dell CEO Michael Dell and his wife Susan for pledging more than $6 billion to the administration’s Trump Accounts program. His comments came as he rang the opening bell for the NYSE and Nasdaq from the Oval Office.
Trump’s 2025 financial disclosure also showed he had traded Dell shares 24 times across five accounts last year, with most transactions being purchases totaling up to $770,000.
AI Demand, Not Trump, Drives Dell
Patrick Moorhead of Moor Insights & Strategy, on the other hand, argued that Dell’s stock rally is driven by strong AI server demand from hyperscalers, not Trump’s endorsement.
Moorhead told Fortune that Dell’s growth began after it became a major supplier in the AI infrastructure market, competing with Supermicro (NASDAQ:SMCI) for large AI server deals. He added that Trump’s comments may have influenced retail investors but are unlikely to affect institutional investors focused on business fundamentals.
"Once they got attached to the AI trade, and they started selling a ton to the big neoclouds, that’s how this whole thing started," he said.
He also dismissed using Trump’s remarks as an investment strategy, saying institutional investors do not adjust valuations based on presidential comments.
According to Benzinga Edge Stock Rankings, Dell has a growth score of 60.73% and a momentum rating of 99.06%. Benzinga’s screener allows you to compare DELL’s performance with its peers.
DELL Price Action: On a year-to-date basis, Dell stock surged 226.51%, as per Benzinga Pro. On Tuesday, it closed 1.33% higher at $417.28.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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