Dell Stock Surges Over 30% on Record AI Server Revenue and Pentagon Contract
Dell Technologies reported Q1 fiscal 2027 revenue of $43.84 billion, up 88% year-over-year, driven by a 757% surge in AI server revenue to $16.1 billion. Adjusted EPS of $4.86 tripled expectations. The company raised its full-year AI revenue forecast to $60 billion and secured a $9.7 billion Pentagon contract. Shares jumped over 30%, adding to a 235% year-to-date gain, fueled by AI demand and a public endorsement from President Trump.
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Dell shares soar 33% as AI server demand and price hikes drive stellar quarterly results
Dell Technologies shares surged 33% on May 30, 2026, following blockbuster quarterly results driven by surging demand for AI servers and strategic price hikes. The company's AI server revenue reached $16.1 billion, surpassing its traditional PC business for the first time, as Dell capitalizes on the global data center boom. The rally is set to add approximately $68 billion to Dell's market value, which stood at around $206 billion. Analysts at Melius Research called Dell 'the best way to play AI,' citing strong execution and conservative outlook. The positive sentiment lifted shares of other server makers, including Super Micro Computer (+16%) and Hewlett Packard Enterprise (+12%). Dell's infrastructure solutions segment has now outpaced PC revenue for four consecutive quarters. At least 13 brokerages raised their price targets, with a median target of $255, up from $170. The company also navigated a supply-constrained memory chip environment through balanced price hikes and strong supplier relationships.
The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.Dell Surges 33% on AI Server Boom, Super Micro Computer Adds 16% as Hyperscaler Spend Accelerates
Dell Technologies shares surged 33% after reporting fiscal Q1 2027 revenue of $43.84 billion, up 88% year-over-year and beating consensus by 23%. AI-optimized server revenue skyrocketed 757% to $16.13 billion, with $24.4 billion in new AI orders booked. Management raised full-year AI server revenue guidance to roughly $60 billion. The blowout earnings validated the hyperscaler AI infrastructure spending thesis, driving sympathy buying across the sector. Super Micro Computer shares rose 16% to approximately $48, though the company faces unresolved litigation and governance concerns. Dell's gross margin slipped to 18% due to AI server mix dilution, representing the bear case. Dell stock now has a 234% year-to-date return.
Yahoo FinanceDell Stock Surges 32% on Record AI Server Revenue Growth
Shares of Dell Technologies skyrocketed 32% on Friday, heading for their best day ever, after the company reported its fastest revenue growth since returning to the public market in 2018. The surge was driven by a 757% year-over-year increase in AI server revenue, which reached $16.1 billion in the first quarter. Overall quarterly revenue soared nearly 88% year over year. Adjusted earnings per share came in at $4.86, well above the expected $2.94. Analysts at Morgan Stanley acknowledged they underestimated the results, calling it 'one of the most impressive quarters' they have seen in hardware coverage. The demand was fueled by AI-related servers containing Nvidia graphics processing units.
US Top News and AnalysisDell Q1 FY2027 Earnings Beat Expectations on AI Server Revenue Surge
Dell Technologies reported record Q1 FY2027 revenue of $43.84 billion, an 88% year-over-year increase, driven by surging demand for AI-optimized servers. Adjusted EPS of $4.86 far exceeded LSEG consensus estimates of $2.94. The Infrastructure Solutions Group generated $29 billion in revenue, up 181%, with AI server revenue alone reaching $16.1 billion (a 757% gain). Dell also booked $24.4 billion in AI orders during the quarter. The Client Solutions Group saw 17% revenue growth to $14.6 billion. Net income more than tripled to $3.44 billion. Dell raised its full-year AI server revenue target to approximately $60 billion and annual revenue guidance to $165-$169 billion. Second-quarter guidance also beat analyst expectations. COO Jeff Clarke noted daily repricing due to rising costs for memory and processors. The AI server customer base has grown to over 5,000, including cloud providers, sovereign governments, and large enterprises.
Yahoo FinanceDell raises outlook on surging AI infrastructure demand, sending shares sharply higher
Dell Technologies raised its full-year revenue and earnings guidance on Thursday, citing robust demand for its AI-focused server portfolio as businesses accelerate data center investments. The company now expects fiscal 2027 AI server revenue of approximately $60 billion, up from a prior forecast of $50 billion, and full-year revenue between $165 billion and $169 billion, compared to earlier guidance of $138-$142 billion. Dell shares surged about 39% in extended trading. Major clients include CoreWeave, Honeywell, and Samsung, while tech giants like Alphabet and Amazon are expected to invest over $700 billion in AI infrastructure this year. Dell's COO noted ongoing repricing due to inflationary pressures but said operational flexibility is mitigating cost impacts.
Yahoo FinanceDell shares soar 30% as AI server demand and price hikes drive stellar quarterly results
Dell Technologies reported blockbuster quarterly results, with shares surging 30% on Friday. The company's AI server revenue reached $16.1 billion, surpassing its PC unit's $14.6 billion in sales for the first time. Dell's infrastructure solutions segment has now eclipsed PC revenue for four consecutive quarters, driven by strong demand for AI-optimized servers amid the global data center boom. The company is set to add approximately $62 billion to its market value. Dell raised prices in the first quarter to offset rising memory chip costs, leveraging its scale and supplier relationships. The strong performance lifted shares of rivals Super Micro Computer and Hewlett Packard Enterprise by about 14%, while HP rose 10%. Analysts called Dell 'the best way to play AI,' though the company maintained a conservative outlook on server demand.
Yahoo FinanceDell Stock Soars 33% as Earnings Blow Past Wall Street Expectations
Dell Technologies shares surged 33% on Friday, May 28, 2026, after the company reported fiscal first-quarter earnings that far exceeded analyst expectations. Adjusted earnings per share more than tripled year-over-year to $4.86, while revenue nearly doubled to a record $43.8 billion. The explosive growth was driven by booming demand for AI-optimized servers, with orders skyrocketing 757% to $16.1 billion. Chief Operating Officer Jeff Clarke stated that the 'AI opportunity shows no signs of slowing.' The company raised its full-year revenue guidance to between $165 billion and $169 billion, up from a prior range of $138-142 billion. Dell shares have now gained approximately 235% in 2026, making it one of the best-performing stocks in the S&P 500. The rally was also supported by a recent $9.7 billion Pentagon contract and strong sentiment around the AI trade.
Yahoo FinanceDell shares surge 19% on record AI-driven revenue growth and raised forecast
Dell Technologies reported its fastest revenue growth since returning to the public market in 2018, with Q1 fiscal 2027 revenue soaring 88% year-over-year to $43.84 billion, far exceeding analyst expectations of $35.43 billion. Adjusted earnings per share of $4.86 also beat the $2.94 consensus. The surge is driven by AI server demand, with AI server revenue jumping 757% to $16.1 billion. Dell raised its full-year AI revenue forecast to $60 billion. The Infrastructure Solutions Group revenue rose 181% to $29 billion. The company also benefited from a $9.7 billion Pentagon contract for Microsoft 365 services. President Donald Trump was disclosed as a new shareholder in the first quarter. Dell's stock rose 19% in extended trading, adding to a 150% year-to-date gain.
US Top News and AnalysisDell Stock Surges 24% on AI Demand and Political Endorsement
Dell Technologies stock experienced its strongest weekly performance since February 2024, surging approximately 24% to add to a 92% year-to-date gain. The rally was driven by multiple catalysts, including robust demand for AI-optimized servers and a public endorsement from U.S. President Donald Trump, who urged Americans to buy Dell products during a White House event. Additionally, Mizuho Securities raised its price target for Dell to $260, citing growing enterprise demand for AI infrastructure. The company reported a record AI server backlog of $43 billion and expects AI server revenue to reach $50 billion in the current fiscal year, representing a 103% year-over-year increase. With Q1 earnings approaching in late May, investors are assessing whether the underlying strength in AI infrastructure spending can sustain further upside beyond recent sentiment-driven spikes. Dell's strategic positioning in the AI hardware market, particularly through partnerships with firms like Nvidia and clients such as TotalEnergies, continues to solidify its role as a key beneficiary of the global data-center expansion.
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