Dell's stock rockets 30% after AI server sales surge 757% in Q1
Dell Technologies saw its stock price soar by nearly a third on Friday after reporting strong financial results. The company’s first-quarter revenue jumped by almost 88% compared to last year, far outpacing expectations. Analysts have since raised their price targets, with some now predicting even bigger gains ahead.
The surge in Dell’s performance was driven largely by AI server sales, which hit $16.1 billion—a 757% increase. Adjusted earnings per share also beat forecasts, coming in at $4.86 against the Street’s prediction of $2.94. In response, the company lifted its full-year revenue outlook to around 50% annual growth.
Analysts quickly adjusted their views. J.P. Morgan raised its target from $280 to $500, while Susquehanna upgraded Dell to Positive with a new $700 price target. Morgan Stanley admitted it had underestimated the company’s potential. Beyond financial results, Dell secured a major Pentagon contract worth $9.7 billion for software solutions. The company also revised its AI revenue forecast, now expecting 144% annual growth for the full year.
The sharp rise in stock price reflects investor confidence in Dell’s AI-driven growth. With a stronger revenue outlook and a multi-billion-dollar defence contract, the company appears well-positioned for further expansion. Analysts continue to revise their targets upward as demand for AI infrastructure climbs.
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