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Dell Technologies: Dell Technologies shares surged 32% on Friday after the company posted its fastest revenue growth since returning to the public market in 2018.
The sharp rally placed the stock on track for its strongest single-day performance ever. The company released its first-quarter earnings report after markets closed on Thursday.
Dell reported a major increase in demand for artificial intelligence servers. The growth was driven by rising interest in AI infrastructure across the technology sector.
The servers include advanced graphics processing units supplied by companies such as Nvidia.
Melius analyst Ben Reitzes said Dell stock still appears “cheap” despite the strong market reaction.
Investors responded positively to the company’s expanding AI business and improving revenue momentum.
Dell Technologies reported a sharp increase in quarterly revenue, driven by soaring demand for artificial intelligence servers.
The company said revenue jumped nearly 88% from the same period last year. AI server revenue surged 757% year over year to $16.1 billion.
Adjusted earnings per share reached $4.86, significantly above Wall Street expectations of $2.94.
Ben Reitzes, head of technology research at Melius, described the quarter as one of the strongest performances he has seen from the company.
Speaking to CNBC’s “Squawk on the Street,” Reitzes said Dell exceeded forecasts across nearly every major business segment.
He said the results reflected more than just strong AI demand and pointed to the company’s broader operational execution.
“They beat every line in the model, so this wasn’t just AI, it was great execution,” Reitzes said during the interview.
Dell Technologies’ stronger-than-expected quarterly results prompted several Wall Street analysts to reassess their outlook on the company.
Analysts at Morgan Stanley said the earnings report exceeded even their optimistic expectations.
The firm noted that while it had anticipated a solid earnings beat and higher guidance, Dell’s performance went far beyond forecasts.
In a research note released Friday, Morgan Stanley analysts acknowledged that their previous projections underestimated the company’s momentum.
“We got this one wrong, and our model/PT are under review,” the analysts wrote.
The firm described Dell’s quarter as one of the most impressive performances seen in the hardware sector in recent years.
Analysts also highlighted the broader industry backdrop, noting that Dell delivered exceptional results despite ongoing challenges across the global component market.
The earnings report reinforced investor confidence in Dell’s expanding position within the artificial intelligence infrastructure market.
Dell Technologies shares had already posted significant gains before Friday’s sharp rally, with the stock nearly tripling over the past year.
The company’s rise has coincided with closer ties between Dell Chairman and CEO Michael Dell and President Donald Trump during Trump’s second term in office.
Public government ethics disclosures showed that President Trump purchased between $1 million and $5 million worth of Dell shares on Feb. 10.
The filings indicated the stock purchases came after Michael and Susan Dell announced a $6.25 billion contribution to support Trump Accounts for 25 million children across the United States.
Investors have closely followed Dell’s growing influence in the artificial intelligence infrastructure market, which has become a major driver of the company’s recent stock performance.
President Donald Trump publicly praised Dell Technologies during a Mother’s Day event at the White House earlier this month.
Speaking at the event, Trump encouraged Americans to “go out and buy a Dell” while recognizing Michael and Susan Dell for their participation in the Trump Account initiative.
The comments came as Dell continued to strengthen its presence in both the public and private technology sectors.
Separately, Dell secured a major government agreement on Wednesday after winning a Pentagon contract valued at $9.7 billion.
The contract will allow the company to provide a range of software services to the U.S. military.
The deal marked another significant expansion of Dell’s relationship with federal agencies amid growing demand for advanced technology infrastructure and enterprise software solutions.
Visual Disclaimer: This is an AI-generated illustrative portrait. It is used for creative representation and does not depict a real-time event. Created by AD News Live.
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