Summary: Dell Technologies' stock rallied almost 40% in premarket trading on Friday after the company boosted its annual revenue forecast and increased its projected AI server revenue for fiscal 2027, reflecting robust demand for Nvidia-powered AI server systems. The move would add more than $81 billion in market value at the current share price of $442.70 if those gains hold.
Dell said it now expects annual revenue in the range of $165 billion to $169 billion, up from a prior outlook of $138 billion to $142 billion. Management also raised its projection for AI server revenue to about $60 billion in fiscal 2027, up from a previous estimate of $50 billion.
The company reported first-quarter revenue of $43.84 billion, an 88% increase from the prior year, and comfortably above the LSEG-compiled average analyst estimate of $35.43 billion. The jump in sales was attributed in part to strong orders for enterprise infrastructure and AI servers equipped with Nvidia technology.
Dell has benefitted from data center investment by major cloud providers such as Alphabet and Amazon, the company said, along with the impact of price increases and better supply-chain management. Those factors combined with accelerating AI hardware demand to produce a standout quarter.
Market reaction was swift. Shares of Dell Technologies climbed sharply in premarket trading, and at the prevailing share price of $442.70 the market capitalization would increase by more than $81 billion if the gains remain. The stock has more than doubled year to date, outpacing the benchmark S&P 500 index’s 10.5% rise over the same period.
Other firms in the AI server and enterprise hardware space also moved higher on Dell’s results. Super Micro Computer and Hewlett Packard saw their shares rise 10.7% and 23.5%, respectively, following Dell’s report.
At least three brokerages raised their price targets on Dell after the quarterly results, according to market reports. LSEG data show a median target price of $236.5, and 19 of 28 analysts rate the stock "Buy" or higher. Analysts at Morgan Stanley commented on the quarter, saying: "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."
Dell is positioned at the center of a broader shift in AI spending toward hardware, alongside peers such as Super Micro Computer. The company supplies AI servers and enterprise infrastructure that are increasingly sought after as customers scale up data center deployments.
Following Dell’s results, market participants also noted the company’s improved supply-chain positioning and ability to implement price increases as contributors to the outsize revenue performance. The combination of these operational factors and large customer investments helped drive the stronger-than-expected quarter.
Investor interest has been reflected in analyst actions and in pronounced moves across related stocks. The jump in Dell shares, combined with gains at other server makers, highlights the current market focus on hardware providers that support AI workloads.
Promotional and advisory services have responded to the stock’s move. One investment-suggestion service asked whether an investor should put $2,000 into Dell now, noting the firm evaluates companies using dozens of financial metrics and uses AI to identify opportunities. The same service cited notable past winners it tracks, including Super Micro Computer (+185%) and AppLovin (+157%).
While several brokerages raised targets and the stock traded substantially higher in premarket activity, the median analyst price target cited by LSEG remains well below the intraday trading level. Market capitalization expansion tied to the share-price move would add more than $81 billion if sustained.
Overall, Dell’s quarter and updated outlook underscore robust demand for Nvidia-powered AI servers and have triggered both re-rating by some analysts and substantial share-price volatility in early trading.