Investors flock to tech giant as artificial intelligence boom sends shares soaring to unprecedented heights

Table of Contents Dell Technologies posted its most impressive quarterly revenue expansion since going public again in 2018, powered by unprecedented demand for artificial intelligence infrastructure. Shares rocketed nearly 39% in extended-hours trading Thursday, climbing to $443.86 after ending regular trading at $317.05. Dell Technologies Inc., DELL The company recorded $43.84 billion in revenue for its fiscal first quarter ending May 1 — representing an 88% year-over-year surge that demolished analyst projections of $35.43 billion. Adjusted earnings per share reached $4.86, substantially outperforming the $2.94 Wall Street consensus. These figures represent Dell’s strongest quarterly growth trajectory since its 2018 initial public offering, which occurred five years following its privatization. Previously, the company’s peak growth rate stood at 39%, achieved in the immediately preceding quarter. $DELL (Dell Technologies) #earnings are out: pic.twitter.com/u9zuppilYQ — The Earnings Correspondent (@earnings_guy) May 28, 2026 Profitability surged dramatically, with net income climbing more than threefold to $3.44 billion, or $5.24 per share, compared to $965 million, or $1.37 per share, in the same period last year. AI servers emerged as the undisputed catalyst behind Dell’s extraordinary results. This division generated $16.1 billion in revenue, representing a staggering 757% increase from the prior year, as organizations ranging from cloud hyperscalers to enterprise customers accelerated investments in AI computing capabilities. The company disclosed it now serves over 5,000 customers for AI server deployments. New bookings reached $24.4 billion during the quarter, with the company closing the period carrying an AI server order backlog of $51.3 billion. Looking ahead to fiscal 2027, Dell elevated its AI server revenue projection to $60 billion, up from its previous estimate of $50 billion. This revised target implies approximately 144% year-over-year growth. Dell’s Infrastructure Solutions Group — encompassing servers and data center hardware — recorded a 181% revenue jump to $29 billion, substantially exceeding the analyst consensus of $22.4 billion. Conventional server products also demonstrated robust performance. CPU-based server revenue nearly doubled to $8.5 billion. Chief Operating Officer Jeff Clarke highlighted that semiconductor manufacturers and major technology companies are deploying these systems for inference operations and agentic AI workloads. For the upcoming second quarter, Dell projected adjusted earnings per share of $4.80 and revenue between $44–$45 billion. Wall Street analysts had anticipated $2.98 EPS and $34.97 billion in revenue. The company elevated its full fiscal 2027 outlook to $165–$169 billion in revenue and $17.90 in adjusted EPS. The LSEG consensus previously stood at $142.5 billion in revenue and $13.09 EPS. Dell continues navigating escalating component costs. The company implemented price increases in January, with Clarke noting that pricing adjustments occur regularly due to inflationary pressures affecting memory chips, processors, storage drives, and raw materials. He indicated these cost pressures are expected to persist. Supply limitations are anticipated during the latter portion of fiscal 2027, particularly affecting memory components, standard processors, and hard drive availability. Earlier this week, the Department of Defense granted Dell a five-year contract valued at $9.7 billion to administer Microsoft 365 licensing throughout U.S. military operations. Evercore ISI analysts characterized the agreement as providing Dell with diversified revenue opportunities extending beyond its AI server operations. The Client Solutions Group, Dell’s personal computer division, reported 17% revenue growth to $14.6 billion, surpassing the $12.8 billion analyst estimate. Prior to Thursday’s market close, DELL shares had already climbed more than 150% year-to-date.