Dell (DELL) Surges as Morgan Stanley Scraps Underweight Rating After AI-Driven Blowout

Dell Technologies (DELL) delivered a fiscal first-quarter shock that forced Morgan Stanley to reverse its bearish stance. The investment bank withdrew its underweight rating and $170 target on June 1, 2026, after Dell’s non-GAAP revenue surged 87.5% year-over-year to $43.8 billion and earnings per share hit $4.86, beating the most optimistic Street forecasts by 66%. The results, published May 28, sent shares soaring about 38% after hours to roughly $420. Morgan Stanley analyst Erik Woodring said the quarter was one of the most impressive in his career, as AI demand broadened beyond GPU servers into traditional compute and storage. Dell’s Infrastructure Solutions Group revenue jumped 181% to $29 billion, and management lifted full-year revenue guidance to $167 billion with EPS seen at $17.90, up 39% from prior targets. Woodring noted the hardware cycle is far stronger than anticipated, and Dell’s re-rating from “traditional PC maker” to core AI-infrastructure provider is now under review across Wall Street.