Dell (DELL) Shares Surge Nearly 40% After AI Server Boom Drives Outlook Far Above Estimates

Dell Technologies (DELL) shares surged almost 40% in after-hours trading on May 28 after the company forecast fiscal 2027 revenue that crushed Wall Street estimates, driven by insatiable demand for AI servers. The Texas-based hardware maker said revenue for the year ending January 2027 will reach about $167 billion, including $60 billion from AI servers, sharply higher than its prior outlook of $140 billion. First-quarter sales jumped 88% to $43.8 billion, with $16.1 billion in AI server sales on $24.4 billion in orders. Adjusted profit of $4.86 a share demolished the $2.99 average estimate. Dell’s AI server backlog swelled to $51.3 billion, and the trend is broadening as customers shift from training AI models to deploying them, Chief Financial Officer David Kennedy said. The PC division added a 17% revenue gain to $14.6 billion. Shares hit $443.86 in late trading after closing at $317.05.