Key Moments
- Dell Technologies’ premarket share price jumped nearly 40%, driven by strong demand for its Nvidia-powered AI servers.
- The company lifted its full-year revenue outlook to a range of $165 billion to $169 billion and projected about $60 billion in AI server revenue for fiscal 2027.
- First-quarter revenue climbed 88% to $43.84 billion, significantly exceeding the LSEG-compiled analyst consensus of $35.43 billion.
AI Momentum Sparks Massive Move in Dell Shares
Dell Technologies’ stock surged nearly 40% in premarket trading on Friday after the company reported powerful demand for its Nvidia-powered artificial intelligence servers and raised its full-year revenue and profit forecasts.
At the indicated premarket level of $442.70, Dell stood to gain more than $81 billion in market capitalization if the advance were to persist through regular trading.
Upgraded Guidance and Long-Term AI Server Targets
Supported by robust AI infrastructure demand, Dell boosted its annual revenue guidance to a range of $165 billion to $169 billion, compared with its previous projection of $138 billion to $142 billion. The company also outlined a more ambitious long-term outlook for AI server sales, now expecting about $60 billion in AI server revenue in fiscal 2027, up from its earlier target of $50 billion.
Dell has been a key beneficiary of increased data center spending by Alphabet and Amazon, alongside its own pricing actions and operational efficiencies in its supply chain.
Analyst Response and Valuation Landscape
Following the results, at least three brokerages raised their price targets on Dell shares. The stock currently carries a median target price of $236.5, with 19 of 28 analysts assigning a “Buy” or higher rating, based on data compiled by LSEG.
Analysts at Morgan Stanley highlighted the strength of the quarter, stating in a note: “This was across the board one of the most impressive quarters we’ve seen in our time covering Hardware, especially in the context of what is happening across the component universe.”
Positioning in the AI Hardware Shift
Companies such as Dell and Super Micro Computer have been central to a pronounced reallocation of AI-related spending from software to hardware. Dell shares have already more than doubled in value so far this year, far ahead of the benchmark S&P 500 index’s 10.5% rise.
Shares of other AI server manufacturers also advanced in the wake of Dell’s update. Super Micro Computer gained 10.7%, while Hewlett Packard climbed 23.5%.
First-Quarter Performance vs Expectations
For the first quarter, Dell reported revenue of $43.84 billion, an 88% increase that substantially topped the LSEG-compiled average analyst estimate of $35.43 billion.
Key Figures at a Glance
| Metric | Reported / Current | Previous / Reference |
|---|---|---|
| Premarket share price | $442.70 | – |
| Implied market value added | More than $81 billion | – |
| New annual revenue forecast | $165 billion – $169 billion | $138 billion – $142 billion |
| AI server revenue outlook for fiscal 2027 | About $60 billion | $50 billion |
| Q1 revenue | $43.84 billion | Analyst estimate: $35.43 billion |
| Year-to-date Dell share performance | More than doubled | S&P 500: 10.5% rise |
| Super Micro Computer share move | +10.7% | – |
| Hewlett Packard share move | +23.5% | – |
| Analyst ratings (Buy or higher) | 19 of 28 | Median target price: $236.5 |
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