Dell (DELL) Stock Surges on Record AI Server Sales and New XPS 13 Reveal

Table of Contents Dell Technologies experienced one of its most remarkable earnings performances in years — and the momentum continues building. Dell Technologies Inc., DELL Shares traded at $429.50 during Monday’s premarket hours, gaining roughly 2-3%, following Friday’s explosive 33% rally triggered by fiscal Q1 FY2027 earnings. This marked the company’s strongest quarterly revenue expansion since its 2018 return to public trading. Quarterly revenue reached an unprecedented $43.8 billion, representing 88% year-over-year expansion. Diluted earnings per share climbed to $5.24, up 282%. Non-GAAP EPS reached $4.86, significantly surpassing analyst consensus of $2.93 by nearly 66%. The standout metric capturing investor attention: AI server revenue totaling $16.1 billion, reflecting 757% annual growth. COO Jeff Clarke stated directly — “We secured $24.4 billion in AI orders and delivered $16.1 billion of AI server revenue. We’re raising our AI server revenue projections for FY27 to $60 billion.” The company’s order backlog for AI servers reached an unprecedented $51.3 billion. Such figures demand attention. The earnings performance sparked widespread analyst revisions. Susquehanna delivered the most aggressive adjustment, upgrading Dell to Positive from Neutral while lifting its price target dramatically to $700 from $138. Barclays increased its target to $550. JPMorgan elevated expectations to $500, citing Dell’s enhanced FY2027 guidance and expanding market position. Mizuho maintained its Outperform stance while boosting its target from $350 to $435. CFO David Kennedy announced the company elevated its full-year revenue forecast to $167 billion at the midpoint — representing nearly 50% year-over-year growth. Dell also secured a $9.7 billion Pentagon agreement to provide software solutions to the U.S. military, further strengthening what was already an exceptional week. Sunday brought Dell’s announcement of the XPS 13 notebook, carrying a $699 price tag, with student pricing reduced to $599 for the back-to-school period. This positioning creates direct competition with Apple’s MacBook Neo, which debuted in March at $599, discounted to $499 for students. Dell’s messaging was straightforward: “XPS 13 arrives at its most accessible price ever, contending with the MacBook Neo on price, and exceeding it on features.” Apple shares declined 0.7% to $309.86 in Monday’s premarket trading. Dell’s upward trajectory had accelerated even before the earnings release. Multiple AI-related announcements at Dell Technologies World 2026 fueled approximately 24% gains during the preceding week. During that conference, Dell showcased new AI infrastructure offerings and broadened collaborations with Nvidia, Google, and SpaceX AI. Competitor stocks benefited from the positive sentiment as well. Lenovo Group climbed over 10% during early June 1 trading, reaching a fresh all-time peak, propelled by enthusiasm surrounding AI infrastructure providers following Dell’s performance. Computex 2026 takes place June 1–5, centered on AI infrastructure themes, with Nvidia CEO Jensen Huang scheduled to deliver the keynote address on June 1.