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Dell Surges on AI Server Demand
29 May
Summary
- Dell's shares climbed nearly 40% on strong AI server demand.
- Annual revenue forecast significantly raised to $165B-$169B.
- First-quarter revenue surged 88% to $43.84 billion.
Dell Technologies' stock soared by almost 40% in premarket trading on May 29, 2026, driven by exceptional demand for its Nvidia-powered AI servers. The company also announced a substantial upward revision of its annual revenue forecast, projecting it to be between $165 billion and $169 billion, a significant increase from its previous estimate.
This impressive performance is attributed to major data center investments from tech giants like Alphabet and Amazon. Dell has also benefited from strategic price increases and streamlined supply chain operations, enhancing its market position.
The company now anticipates AI server revenue to reach approximately $60 billion by fiscal year 2027. Dell's first-quarter results were exceptionally strong, with revenue jumping 88% to $43.84 billion, significantly surpassing market expectations.
Dell and its peers, such as Super Micro Computer, are central to a broad industry shift where AI spending is increasingly directed towards hardware. Dell's stock performance this year has more than doubled, outperforming the broader S&P 500 index.
