Dell (DELL) Stock Soars 38% as AI Server Revenue Skyrockets 757% in Record Quarter

Table of Contents Dell Technologies delivered a stunning quarterly performance on Thursday, propelling its stock 38% higher during Friday’s premarket session. The technology giant announced first-quarter revenue reaching $43.8 billion, representing an 88% increase from the prior-year period. The most remarkable figure came from AI server sales, which exploded by 757% year-over-year. Dell simultaneously elevated its fiscal 2027 annual outlook, now projecting revenue in the range of $165 billion to $169 billion. This projection significantly exceeds the $142 billion consensus estimate from Wall Street analysts. Dell’s impressive numbers created a ripple effect throughout the technology sector. Hewlett Packard Enterprise experienced gains exceeding 19%, while NetApp advanced more than 15% following its own earnings surprise. International Business Machines saw a 5.5% increase, and Super Micro Computer climbed 9.2%. Dell Technologies Inc., DELL NetApp delivered adjusted earnings of $2.43 per share against revenue of $1.95 billion. The storage solutions provider highlighted robust demand for its premium all-flash storage offerings, which are experiencing heightened adoption due to AI infrastructure requirements. Okta advanced 7.8% after disclosing revenue of $765 million, an 11% year-over-year improvement. PagerDuty surged 13% following an earnings beat, the announcement of new leadership, and a $100 million stock repurchase program. The S&P 500 remains positioned to extend its winning streak to nine straight weeks. This sustained momentum has been predominantly fueled by strong AI-related financial results throughout the technology industry. While tech celebrated, the space sector faced challenges. Aerospace stocks declined significantly after a Blue Origin launch vehicle exploded during a Thursday evening mission. AST SpaceMobile retreated 14% while Rocket Lab declined 5.6% in premarket activity. Both companies had experienced nearly 90% gains during the previous month, driven by enthusiasm surrounding SpaceX’s anticipated public offering. Among the session’s biggest decliners, SentinelOne plummeted nearly 20% after reporting revenue of $276.66 million, falling short of analyst projections. The cybersecurity firm also indicated forthcoming workforce reductions. Gap tumbled 15.8% following disappointing sales performance across its Old Navy and Banana Republic divisions. The apparel retailer reduced its annual net sales growth projection to a range of 1% to 2%. American Eagle Outfitters declined 11.3% despite surpassing earnings and revenue expectations. Comparable sales for its flagship brand decreased 2%, contrasting with forecasts for a 3% increase. Elastic slipped 7.3% after providing conservative near-term guidance, even as fourth-quarter revenue climbed 16% to reach $451 million. Friday’s trading activity highlights the market’s bifurcation, where robust AI-driven results are elevating select technology companies while retailers and cybersecurity players encounter resistance. Dell’s midpoint guidance for full-year adjusted earnings of $17.90 per share substantially exceeds the $13.12 analyst consensus that preceded the announcement.