Dell's stock skyrockets 32% after record AI server sales and Pentagon deal
Dell Technologies saw its stock price soar by roughly 32% on Friday, marking what could be its best single-day gain ever. The surge followed a strong earnings report that far outpaced analyst expectations. Several major banks also raised their price targets for the company in response to its impressive growth figures. The company’s first-quarter revenue jumped by nearly 88% compared to the same period last year. AI server sales alone hit $16.1 billion, a staggering 757% increase. Even traditional server revenue nearly doubled year over year, while storage solutions grew at their fastest pace in three years.
PC division margins also climbed to near-record levels, reinforcing Dell’s strong financial position. Adjusted earnings per share came in at $4.86, well above the $2.94 that Wall Street had predicted. The company now expects its AI revenue to grow by 144% for the full year. Analysts took notice of the results. Susquehanna upgraded Dell to Positive and set a new price target of $700, up sharply from $138. J.P. Morgan raised its own target to $500 from $280, while Morgan Stanley admitted it had underestimated the company’s potential. Beyond financial gains, Dell also secured a major Pentagon contract worth $9.7 billion. The deal involves providing software solutions to support U.S. military operations.
The sharp rise in Dell’s share price reflects investor confidence in its AI-driven growth and strong financial performance. With upgraded price targets from key analysts and a major defence contract in place, the company’s outlook appears robust. The latest figures suggest AI and server sales will remain central to its expansion moving forward.
