Dell Technologies’ Stock Skyrockets on Record AI Server Revenue Growth
Dell Technologies shares experienced an unprecedented surge of 32.76% on Friday. This significant leap marks the company’s most successful trading day to date, following a report of substantial growth fueled by the demand for artificial intelligence servers. Since returning to the public market in 2018, Dell has seen its fastest revenue growth yet, with shares now up 234% year-to-date in 2026.
The company reported an impressive first-quarter adjusted earnings per share of $4.86, far surpassing analyst estimates of $2.94. Revenue soared by nearly 88% year-over-year to $43.84 billion, greatly exceeding expectations of $35.43 billion.
The standout performance came from AI-optimized servers, where revenue jumped a staggering 757% to $16.1 billion. Meanwhile, the Infrastructure Solutions Group saw revenue surge by 181% to $29 billion.
Dell secured $24.4 billion in AI orders during the quarter and raised its full-year revenue guidance to between $165 billion and $169 billion, representing a 47% growth. The company also increased its AI server revenue expectations for fiscal 2027 to $60 billion.
“We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing,” said Chief Operating Officer Jeff Clarke.
Analysts were quick to revise their estimates following the report. Morgan Stanley admitted they were “eating our humble pie” and hailed it as “one of the most impressive quarters we’ve seen in our time covering Hardware.” Wall Street raised fiscal 2027 earnings estimates to $16.85 per share from $13.12, and fiscal 2028 estimates jumped to $20.21 from $15.18.
Source: CNBC