Dell Technologies Experiences Record-Breaking Stock Surge Due to High AI Server Demand
Dell Technologies shares experienced a staggering increase of 32.76% last Friday. This marked the company’s most successful trading day in history, following a first-quarter report that greatly surpassed Wall Street’s expectations. The remarkable surge was largely attributed to the explosive demand for AI-optimized servers.
The company reported an adjusted earnings per share of $4.86, significantly higher than the analyst estimates of $2.94. Meanwhile, the revenue was reported at $43.84 billion, far exceeding the expected $35.43 billion. This represents an impressive 88% increase year-over-year. The revenue from AI server sales alone saw a 757% increase from the previous year, reaching $16.1 billion. The company recorded $24.4 billion in AI orders during the quarter.
Following these results, Dell revised its full-year fiscal 2027 revenue outlook. The new projection is between $165 billion and $169 billion, a substantial increase from the previous range of $138 billion to $142 billion. Approximately $60 billion of this is expected to come from AI server sales. The AI server backlog reached a record-breaking $51.3 billion.
Several analysts upgraded their price targets in response to these results. Notably, Susquehanna raised its target to $700 from $138. Dell shares have now increased by 234% in 2026, reflecting the immense potential in AI infrastructure spending.
Source: CNBC