Dell Technologies Rockets as AI Server Boom Ignites

Dell Technologies ( (DELL) ) has risen by 24.29%. Read on to learn why.

Dell Technologies shares have surged 24.29% over the past week as investors piled into the stock following blockbuster earnings and aggressive guidance tied to artificial intelligence (AI). The company stunned Wall Street with record fourth-quarter and full-year fiscal 2026 results, delivering a 45% jump in adjusted earnings per share to $3.89 and a 39% rise in quarterly revenue to $33.4 billion, both comfortably ahead of analyst forecasts. For the full year, revenue climbed 19% to $113.5 billion while net income rose 30% to $5.9 billion, underscoring a powerful earnings recovery.

The main driver behind the rally is Dell Technologies’ fast-growing AI server business, which is reshaping the company’s profile. Its Infrastructure Solutions Group, home to AI-optimized servers, posted a record $19.6 billion in quarterly revenue, up 73% year-on-year, with AI server sales alone soaring 342% to $9 billion. Management highlighted more than $64 billion in AI server orders during the year, over $25 billion already shipped, and a record $43 billion backlog, signaling strong visibility into future demand. Dell further electrified the market by projecting about $50 billion in AI-related server revenue by fiscal 2027.

Looking ahead, Dell Technologies raised the bar with guidance that far exceeds current Wall Street expectations and sweetened the story with shareholder returns, including a 20% dividend hike and a new $10 billion share repurchase program. The company now expects revenue of $138–$142 billion and adjusted EPS of around $12.90 in the new fiscal year, well above prior consensus estimates. Despite some lingering caution from select analysts and negative insider sentiment due to recent selling, the broader analyst community rates the stock a Strong Buy with a higher average price target, helping sustain bullish momentum behind this week’s sharp move in the shares.