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Dell Technologies stock jumped to a new all-time high on Friday after the company reported stronger quarterly sales, faster profit growth, and a sharp rise in artificial intelligence server demand. The rally highlighted how investors now view Dell as a major supplier for AI data centers, not only as a traditional PC maker.
Shares rose after Dell reported fiscal first-quarter revenue of $43.8 billion, up 88% from a year earlier. Adjusted net income rose 194% to $3.2 billion, while adjusted earnings per share climbed 214% to $4.86. The company also raised its full-year outlook as AI infrastructure orders continued to grow.
Dell’s Infrastructure Solutions Group led the quarter. Revenue in the unit climbed 181% year over year to $29 billion, supported by strong demand from companies building and renting AI computing capacity. The unit includes servers, storage, and other data center hardware.
AI-optimized server sales rose 757% to $16.1 billion during the quarter. That figure surpassed Dell’s Client Solutions Group revenue, which includes PCs, laptops, monitors, and related equipment. Client Solutions revenue still grew 17% to $14.6 billion, but AI servers became the main driver of the stock move.
The company now expects fiscal 2027 AI server revenue of about $60 billion, up from its earlier outlook of about $50 billion. Dell also lifted its full-year revenue forecast to a range of $165 billion to $169 billion, with adjusted earnings expected to rise to $17.90 per share.
Chief operating officer Jeff Clarke said the company sees no slowdown in AI demand. “We’re increasing our AI server revenue expectations for FY27 to $60 billion, which only goes to show the AI opportunity shows no signs of slowing,” Clarke said.
Dell’s results also drew attention as stronger pricing helped support margins. The company has raised prices in some areas as demand for AI hardware remains high and component costs stay under pressure.
Clarke also addressed the pricing environment after the earnings release. “We’re repricing, it feels like, every day,” he said. “I’m sure our customers feel that pain.” He added that he does not see that changing in the current inflationary environment.
However, analysts and investors are still watching margins closely. AI server hardware can carry lower margins than some other technology products, even when revenue grows quickly. That makes Dell’s ability to manage costs and pricing important for future earnings.
Buybacks also helped lift earnings per share during the quarter. Dell returned cash to shareholders while reporting stronger operating results. Moreover, the company’s raised outlook gave investors another reason to price in faster growth through the rest of the fiscal year.
Dell’s stock move also came as the company secured a $9.7 billion, five-year Pentagon contract to provide software support for the US military. The deal added another catalyst during a week already focused on AI demand and Dell’s earnings report.
The contract drew wider attention due to recent political links involving Dell and President Donald Trump. Reports stated that Trump bought Dell shares earlier this year through accounts managed by his family trust. At a White House event, he also praised the company and said, ‘go out and buy a Dell.’
Some government watchdogs questioned whether the stock purchases created an appearance of a conflict, given the timing of the federal contract and public comments. The White House has said Trump’s assets are held in a trust controlled by his children.
For now, Dell’s rally reflects a mix of strong quarterly results, higher AI server guidance, and new government business. The stock’s sharp rise also shows how quickly investor demand has shifted toward companies tied to AI data center spending.
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