Presidents aren’t supposed to pick winners, former White House ethics lawyer says. Trump keeps choosing Dell

**Trump's Unorthodox Endorsements: How Much Does the President's Praise Really Matter for Dell's Success?**

President Donald Trump's latest move has left many wondering whether the government is inadvertently influencing the stock market. Just last week, Trump praised billionaire couple Michael and Susan Dell during a ceremony in the Oval Office, encouraging Americans to "go out and buy a Dell computer." The president's endorsement sent Dell's shares soaring, with a nearly 9% increase on the same day, marking the third time in three months that Trump's public praise of Dell coincided with a significant stock gain.

Background & Context

The question of whether Trump's endorsement contributed to Dell's success is a complex one, involving a combination of factors including the company's performance, government contracts, and market trends. Dell, the world's fifth-richest man, has seen his net worth increase significantly in recent months, with an estimated $20.6 billion added to his paper wealth over three trading days in which Trump publicly praised him.

The company's success can be attributed in part to its ability to supply AI servers to hyperscalers, who are building massive data centers to support the growing demand for artificial intelligence. However, the exact role of Trump's endorsement in Dell's stock performance remains unclear, with some experts arguing that the president's praise is merely a coincidence.

Key Details

Trump's first public endorsement of Dell came in February, when he bought between $1 million and $5 million of Dell stock through an account bearing his name. This was followed by a series of public appearances in which the president praised Dell, including a White House Mother's Day luncheon in May and a ceremony in the Oval Office last week. On each of these occasions, Dell's shares rose significantly, with an estimated $8.0 billion added to his paper wealth on the day of the Mother's Day luncheon.

One of the most significant factors contributing to Dell's success is the company's ability to supply AI servers to hyperscalers, who are building massive data centers to support the growing demand for artificial intelligence. According to Patrick Moorhead, chief analyst at Moor Insights & Strategy, Dell's stock is surging because of business from hyperscalers, and not Trump's praise. "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," Moorhead said.

What Experts Say

While some experts argue that Trump's endorsement played a significant role in Dell's success, others believe that the president's praise is merely a coincidence. According to a former White House ethics lawyer, the real issue is not whether Trump's endorsement contributed to Dell's success, but rather whether the president is supposed to pick winners in the first place. "Presidents aren't supposed to pick winners," the lawyer said. "The idea that the president's endorsement can single-handedly boost a company's stock price is a distortion of the role of government in the market."

Key Takeaways

• Dell's shares have risen significantly in recent months, with a nearly 9% increase on the same day as Trump's latest endorsement.
• The company's success can be attributed in part to its ability to supply AI servers to hyperscalers, who are building massive data centers to support the growing demand for artificial intelligence.
• Trump's endorsement may have contributed to Dell's success, but it is not the sole factor driving the company's stock performance.
• The role of government in the market is complex and multifaceted, and the idea that the president's endorsement can single-handedly boost a company's stock price is a distortion of the role of government.

What This Means For You

For everyday investors, the question of whether Trump's endorsement contributed to Dell's success may seem like a distant concern. However, the real-world implications of the president's actions are significant, and can have a direct impact on the stock market and the companies that trade on it. As the government continues to play an increasingly active role in the market, it is essential that investors and policymakers alike understand the complexities of this relationship.

Ultimately, the question of whether Trump's endorsement contributed to Dell's success may never be fully answered. However, one thing is clear: the president's actions have the power to shape the market in profound and far-reaching ways, and it is up to investors, policymakers, and experts alike to understand and navigate these complexities.