Dell stock surges 21% as AI server sales projected to hit $50 billion in fiscal 2027
8 Sources
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Dell Jumps After Projecting AI Server Sales of $50 Billion
Dell Technologies Inc. shares jumped in extended trading after the company gave an outlook for sales of its artificial intelligence servers that exceeded estimates, a sign of robust demand for machines helping fuel the AI data center build-out. The company will generate about $50 billion in AI
[2]
Dell shares climb 19% on earnings beat as company navigates rising memory costs
Dell shares soared 19% on Friday after the company beat fourth-quarter estimates and issued strong guidance, as a historic memory shortage puts pressure on prices in the sector. Dell reported adjusted earnings of $3.89 per share, exceeding the $3.53 per share expected by analysts surveyed by LSEG.
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Dell's stock pops as soaring AI demand drives stellar 39% revenue increase - SiliconANGLE
Dell's stock pops as soaring AI demand drives stellar 39% revenue increase Data center hardware and personal computer maker Dell Technologies Inc. easily beat Wall Street's expectations today as it posted its latest financial results, benefitting from surging artificial intelligence demand. The
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Dell stock jumps as strong AI server demand boosts sales forecast
Dell stock is rising because the company expects very strong demand for AI servers. Big tech companies are spending huge money on AI infrastructure, which helps Dell get more orders. The company also gave higher sales and profit forecasts than expected. Even though chip costs are rising, Dell
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Why Dell Stock Surged Today | The Motley Fool
Shares of Dell Technologies (DELL +21.93%) popped on Friday after the tech giant highlighted the soaring growth of its artificial intelligence (AI)-focused businesses. By the close of trading, Dell's stock price was up more than 21%. Dell's revenue rose 39% year over year to $33.4 billion in its
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Dell soars as Wall Street praises 'unexpectedly' strong guidance, thanks to AI (DELL:NYSE)
Dell Technologies (DELL) was in the spotlight on Friday after the tech giant reported better-than-expected results and guidance, leading to much praise from Wall Street. The reason? Artificial intelligence. Looking to the first-quarter of fiscal 2027, Dell anticipates adjusted earnings of
[7]
JPMorgan resets price target on this AI dividend stock
Dell Technologies stock soared 22% after the company blew past fourth-quarter expectations and delivered guidance that left analysts scrambling to revise their models. JPMorgan responded by hiking its Dell (DELL) stock price target to $165 from $155, and that move is worth paying close attention
[8]
Dell expects AI server revenue to double in fiscal 2027 on data center boom
Feb 26 (Reuters) - Dell said it expects revenue from its key artificial intelligence-optimized servers business to double in fiscal year 2027 and promised to return more cash to shareholders, sending its shares surging 10% in extended trading. The company announced a 20% hike in its cash dividend
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Dell Technologies shares jumped 21% after the company projected $50 billion in AI server revenue for fiscal 2027, more than doubling from the prior year. The tech giant beat fourth-quarter estimates with $33.4 billion in sales, up 39% year-over-year, and enters the year with a record backlog of $43 billion in orders. The strong financial results signal robust demand for AI infrastructure despite rising memory chip costs.
Dell Projects Record AI Server Sales Amid Surging Demand
Dell Technologies shares experienced a dramatic Dell stock surge of 21% following the company's announcement of strong financial results and an aggressive revenue forecast that exceeded Wall Street expectations
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. The Texas-based tech giant projected AI server sales of approximately $50 billion for fiscal 2027, representing more than double the previous year's performance and signaling explosive growth in the AI infrastructure market1
. Dell enters the current fiscal year with a record backlog of orders totaling $43 billion, demonstrating that surging demand for AI servers shows no signs of slowing5
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Source: Motley Fool
Chief Operating Officer Jeff Clarke emphasized the transformative nature of this opportunity, stating, "The AI opportunity is transforming our company" and noting that the company closed more than $64 billion in AI-optimized server orders throughout fiscal 2026
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. The stock price climbed from a closing price of $121.45 to post gains of over 21% by the end of trading5
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Source: SiliconANGLE
Strong Financial Results Beat Analyst Expectations
Dell delivered strong financial results for its fiscal fourth quarter, reporting adjusted earnings of $3.89 per share on revenue of $33.4 billion, representing a 39% increase from the same period one year earlier
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. These figures significantly exceeded the earnings beat that analysts had anticipated, with Wall Street projecting just $3.52 per share on revenue of $31.7 billion1
.The company's AI-optimized servers generated $8.95 billion in quarterly sales, marking a staggering 342% increase from the prior year
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. Dell's Infrastructure Solutions Group, which includes servers and storage systems, saw revenue jump 73% to $19.6 billion, while the Client Solutions Group, focused on personal computers, added $13.5 billion in sales, up 14%1
.Navigating Rising Memory Chip Costs While Maintaining Margins
Despite facing rising memory chip costs that have pressured the broader technology sector, Dell managed to maintain healthy margins through strategic management
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. The company's server and networking unit reported an operating margin of 14.8%, surpassing the average analyst estimate of 12.9%1
. Overall gross margins came in at 20.5%, higher than the expected 20.3%3
.Jeff Clarke acknowledged the challenging environment, noting that "the environment remains highly dynamic, with unprecedented AI demand creating sustained supply tightness and frequent pricing resets"
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. However, he emphasized that Dell is "managing this environment in real time, applying lessons learned from prior cycles to improve resilience"3
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Aggressive Revenue Forecast Signals Continued Growth
Looking ahead, Dell issued a revenue forecast that significantly exceeded Wall Street expectations, projecting fiscal 2027 revenue between $138 billion and $142 billion, compared to analyst estimates of $124.7 billion
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. The company expects earnings of approximately $12.90 per share, well above the consensus estimate of $11.561
.Dell's customer base for AI servers has expanded to over 4,000 clients, including cloud computing firms like CoreWeave and Nscale Global Holdings, as well as major enterprises and government customers
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. The company's close relationship with Nvidia, which supplies critical graphics processing units for AI workloads, has positioned Dell as one of the world's top sellers of data center hardware at a time when GPUs remain in short supply3
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Source: Market Screener
To reward shareholders, Dell announced a $10 billion increase in its share buyback program and boosted its cash dividend by 20% to $2.52
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. The company's performance reflects broader industry trends, as major tech firms including Alphabet, Microsoft, Amazon, and Meta plan to spend approximately $630 billion on AI infrastructure4
, creating sustained AI demand that benefits hardware manufacturers positioned to capitalize on this transformative opportunity.References
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